Robert John Capko, the Principal Accounting Officer at Middlesex Water Co (NASDAQ:MSEX), recently sold 143 shares of the company's common stock. The sale, executed on November 8, was priced at $69.31 per share, totaling $9,911. Following this transaction, Capko holds no shares of the company's stock directly. Middlesex Water Co, headquartered in Iselin, New Jersey, is engaged in the water supply industry.
In other recent news, Middlesex Water Company (NASDAQ:MSEX) reported significant changes in its executive compensation agreements, according to a recent SEC filing. The company disclosed it will not extend its current Change in Control Agreements past December 31, 2024, for certain executives. Instead, new agreements have been established, set to take effect from January 1, 2025, which include provisions for severance benefits in the event of a change in company control.
The company also announced a quarterly cash dividend increase to $0.34 per share, marking a 4.62% rise from the previous dividend. This decision continues Middlesex Water Company's 52-year streak of dividend growth. However, Baird downgraded Middlesex Water's stock to Neutral from Outperform after the company's recent quarterly filing omitted its anticipated capital expenditure outlook, raising concerns about future revenue and earnings visibility.
In terms of personnel changes, Middlesex Water appointed Mohammed G. Zerhouni as Senior Vice President, Chief Financial Officer, and Treasurer. Zerhouni, who brings over two decades of finance leadership experience in the regulated utility sector, succeeds A. Bruce O'Connor following his retirement. Additionally, Tidewater (NYSE:TDW) Utilities, a subsidiary of Middlesex Water, is prepared to comply with the forthcoming United States Environmental Protection Agency's drinking water standard for specific PFAS compounds, having proactively tested all its 175 wells and installed ion exchange resin systems for PFAS treatment at four locations.
InvestingPro Insights
While Robert John Capko's recent sale of 143 shares might raise eyebrows, it's crucial to consider Middlesex Water Co's broader financial picture. According to InvestingPro data, the company boasts a market capitalization of $1.24 billion and has demonstrated solid revenue growth, with a 10.14% increase over the last twelve months as of Q3 2024. This growth trajectory is further emphasized by a robust 17.95% quarterly revenue growth in Q3 2024.
InvestingPro Tips highlight that Middlesex Water Co has maintained dividend payments for an impressive 54 consecutive years, showcasing its commitment to shareholder returns. This is further underscored by the company's dividend yield of 1.98% and a dividend growth rate of 8.8% over the last twelve months. These factors may provide some reassurance to investors concerned about insider selling.
However, it's worth noting that the stock is trading at a relatively high P/E ratio of 29.97, which InvestingPro Tips flag as a high earnings multiple relative to near-term earnings growth. This valuation metric suggests that investors are pricing in significant future growth expectations.
For those seeking a more comprehensive analysis, InvestingPro offers 7 additional tips that could provide deeper insights into Middlesex Water Co's financial health and market position. These additional tips could be particularly valuable in contextualizing the recent insider sale and assessing the company's long-term prospects.
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