Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Disclosed in the latest SEC filing, a significant insider purchase on May 9, involves Brenda Cline, Board Member at Range Resources (NYSE:RRC).
What Happened: Cline's recent move, as outlined in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, involves purchasing 5,410 shares of Range Resources. The total transaction value is $200,007.
Range Resources shares are trading down 2.6% at $35.95 at the time of this writing on Friday morning.
Unveiling the Story Behind Range Resources Fort Worth-based Range Resources is an independent exploration and production company with that focuses entirely on its operations in the Marcellus Shale in Pennsylvania. At year-end 2023, Range Resources' proven reserves totaled 18.1 trillion cubic feet equivalent, with net production of 2.14 billion cubic feet equivalent per day. Natural gas accounted for 69% of production.
Range Resources: Financial Performance Dissected Decline in Revenue: Over the 3 months period, Range Resources faced challenges, resulting in a decline of approximately -26.84% in revenue growth as of 31 March, 2024. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Energy sector.
Interpreting Earnings Metrics:
- Gross Margin: The company shows a low gross margin of 27.89%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.
- Earnings per Share (EPS): Range Resources's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.38.
Assessing Valuation Metrics:
- Price to Earnings (P/E) Ratio: Range Resources's P/E ratio of 18.45 is below the industry average, suggesting the stock may be undervalued.
- Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 3.8 suggests overvaluation in the eyes of investors, considering sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 9.74 reflects market recognition of Range Resources's value, positioning it as more highly valued compared to industry peers.
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Delving Into the Significance of Insider Transactions Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.
When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Unlocking the Meaning of Transaction Codes Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Range Resources's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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