In a recent transaction, Michael T. Bakas, the Executive Vice President of Ameresco, Inc. (NYSE:AMRC), a leading clean technology integrator, sold 108 shares of the company's Class A Common Stock. The transaction, dated March 19, 2024, was executed at an average price of $20.53 per share, resulting in a total sale value of approximately $2,217.
This sale was conducted under an automatic sell-to-cover instruction, which was signed on March 6, 2023, to cover applicable withholding taxes associated with the partial vesting of Restricted Stock Units (RSUs). According to the footnotes provided in the SEC filing, the shares sold were specifically to cover tax obligations, which is a common practice among executives receiving equity-based compensation.
Following the sale, Bakas's direct ownership in Ameresco Class A Common Stock was adjusted to 10,748 shares. The transaction reflects a routine aspect of compensation for executives, where vested equity is often sold to satisfy tax requirements.
The SEC filing also noted that on March 17, 2024, Bakas acquired 295 RSUs, each representing a contingent right to receive one share of Ameresco's Class A Common Stock. These units are part of a grant that vests in 25% increments every six months from the grant date.
Investors often monitor insider transactions as they provide insights into executives' perspectives on their company's stock value. However, transactions related to tax obligations are typically viewed as less indicative of an executive's confidence in the company's future performance.
Ameresco has not provided any further comments on the transaction.
InvestingPro Insights
A close look at Ameresco, Inc. (NYSE:AMRC) through the lens of InvestingPro reveals several key financial metrics and insights. As of the last twelve months ending in Q4 2023, Ameresco's market capitalization stood at $1.05 billion, reflecting the scale of the company within the clean technology sector. Despite the routine nature of the insider transaction by Executive Vice President Michael T. Bakas, Ameresco's financial health and stock performance are of particular interest to investors.
The company's P/E ratio, a measure of its current share price relative to its per-share earnings, was 16.43, suggesting a valuation that investors might consider when assessing the company's earnings potential. Additionally, the revenue for the same period was $1.374 billion, although it experienced a decline of 24.65% compared to the previous year. This could be a point of concern for investors looking for growth in the company's top-line performance.
InvestingPro Tips for Ameresco highlight that the company operates with a significant debt burden and is quickly burning through cash. These factors, coupled with a high EBITDA valuation multiple, could be crucial for investors to consider, especially in the context of the company's stock price having fallen significantly over the last year. For those interested in a deeper dive into Ameresco's financials, InvestingPro offers additional tips, including 8 analysts who have revised their earnings downwards for the upcoming period.
For investors seeking a comprehensive analysis, InvestingPro provides additional insights. There are 12 more InvestingPro Tips available for Ameresco, which could help investors make more informed decisions. To access these tips, visit https://www.investing.com/pro/AMRC and don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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