On July 17, 2023, Joseph Hand, CEO and President of The York Water Co (YORW, Financial), purchased 250 shares of the company's stock. This move is significant as insider buying often signals confidence in the company's future prospects.
Who is Joseph Hand?
Joseph Hand is the CEO and President of The York Water Co. He has been with the company for several years, demonstrating a strong commitment to its growth and success. Over the past year, Hand has purchased a total of 1253 shares and has not sold any, indicating his belief in the company's potential.
About The York Water Co
The York Water Co is a water utility company based in York, Pennsylvania. The company owns and operates three wastewater collection systems and two wastewater treatment systems. It also provides drinking water and offers water distribution services to residential, commercial, and industrial customers. The company has a market cap of $588.553 million.
Insider Buying and Stock Price Relationship
Insider buying is often seen as a positive sign as it indicates that those with the most insight into the company's operations see value in owning its stock. Over the past year, The York Water Co has seen 45 insider buys and only 2 insider sells, suggesting a positive sentiment among the company's insiders.
On the day of Hand's recent purchase, shares of The York Water Co were trading at $39.07. This price gives the stock a price-earnings ratio of 30.05, higher than the industry median of 16.14 but lower than the company's historical median price-earnings ratio.
Valuation
According to GuruFocus Value, The York Water Co is modestly undervalued. With a price of $39.07 and a GuruFocus Value of $48.47, the stock has a price-to-GF-Value ratio of 0.81.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the company's past returns and growth, and future estimates of business performance from Morningstar analysts.
In conclusion, the recent insider buying activity by CEO and President Joseph Hand, coupled with the company's modest undervaluation, suggests that The York Water Co could be a promising investment opportunity.
