YORW

York Water ($YORW) CEO and Executives Signal Confidence with 35 Consistent Share Purchases Despite Stock Weakness

04/16/2025 18:47

Insiders at York Water Co ($YORW) have been consistently purchasing shares despite recent stock weakness, drawing attention from investors. According to SEC Form 4 filings, CEO Joseph Thomas Hand and other executives executed a total of 35 purchase transactions between June 2024 and April 2025. $YORW stock has shown significant volatility over the past six months. After surpassing $40 in mid-July 2024, the share price began declining toward the end of 2024, reaching as low as $30 by mid-January 2025. The stock has since started recovering in March and is currently trading around the $35 level. Notably, insider buying activity intensified during periods when the stock price was at its lowest. CEO Joseph Thomas Hand purchased shares worth $9,750 on July 16, 2024, and made a similar-sized purchase on January 16, 2025, acquiring 311,975 shares at the lowest price point ($31.25 per share). Most recently, on April 16, 2025, he purchased another $9,750 worth of stock. CFO Matthew E. Poff and CAO Alexandra C. Chiaruttini have also been steadily acquiring shares. A significant observation is that most insider transactions were executed through York Water's dividend reinvestment plan, suggesting executives are focused on long-term stake building rather than short-term trading. Director Steven R. Rasmussen, in particular, has consistently purchased approximately $1,000 worth of shares every month. This buying pattern is especially noteworthy as it has continued despite recent underwhelming financial results. York Water reported year-over-year declines in earnings per share in its quarterly results announced in August 2024, November 2024, and March 2025. In the Q4 2024 results announced in March 2025, earnings per share decreased from 42 cents in the prior-year period to 36 cents. However, the company's revenue has maintained steady growth. Q4 2024 revenue increased by 4.3% year-over-year to $18.87 million, with quarterly revenue growth consistently hovering around 4.3%. This indicates that the company's fundamental business model remains stable. York Water, established in 1816, is a historic water supply utility serving 57 municipalities in south-central Pennsylvania. The company also operates multiple wastewater systems. As is characteristic of regulated utility industries, it has a stable revenue structure, evidenced by its high profit margin of 27.11%. Nevertheless, there are some concerns regarding the company's financial health. The debt-to-equity ratio stands at 89.08%, which is relatively high, and the current ratio of 0.90 (below 1) raises questions about short-term liquidity. Additionally, the levered free cash flow of negative $24.23 million is noteworthy. Despite these concerns, analysts maintain a 'strong buy' rating for York Water, with a price target of $42, which is higher than the current stock price. This reflects the long-term stability of water utility companies and the strength of business models providing essential services. The consistent purchasing behavior of insiders can be interpreted as a signal of management's confidence in the company's long-term value. The CEO's ongoing share acquisitions, in particular, demonstrate confidence in the company's future prospects. Water is an irreplaceable essential resource, and companies with water supply infrastructure are positioned to generate stable long-term returns. Looking ahead, York Water is expected to focus on improving operational efficiency and expanding services within its existing markets. The company's history of consistent dividend payments demonstrates its commitment to returning value to shareholders, which can be attractive to income-focused investors. As the U.S. market faces uncertainties due to trade tensions and interest rate fluctuations, utility companies providing essential services may be viewed as relatively stable investment options. The consistent buying pattern demonstrated by York Water's insiders can be interpreted as a positive signal in this context and may serve as a reference point for long-term investors.

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