Benzinga - by Benzinga Insights, Benzinga Staff Writer.
On May 9, Charles Griffie, Director at Range Resources (NYSE:RRC) executed a significant insider buy, as disclosed in the latest SEC filing.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Thursday showed that Griffie purchased 5,410 shares of Range Resources. The total transaction amounted to $200,007.
Range Resources shares are trading up 0.03% at $36.92 at the time of this writing on Friday morning.
Discovering Range Resources: A Closer Look 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.
Key Indicators: Range Resources's Financial Health Revenue Growth: Range Resources's revenue growth over a period of 3 months has faced challenges. As of 31 March, 2024, the company experienced a revenue decline of approximately -26.84%. This indicates a decrease in the company's top-line earnings. When compared to others in the Energy sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Analyzing Profitability Metrics:
- Gross Margin: The company issues a cost efficiency warning with a low gross margin of 27.89%, indicating potential difficulties in maintaining profitability compared to its peers.
- Earnings per Share (EPS): Range Resources's EPS is below the industry average. The company faced challenges with a current EPS of 0.38. This suggests a potential decline in earnings.
Valuation Metrics:
- Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 18.45 is lower than the industry average, indicating potential undervaluation for the stock.
- Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 3.8 as compared to the industry average, the stock might be considered overvalued based on sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 9.74, the company's EV/EBITDA ratio outperforms industry norms, reflecting positive market perception. This positioning indicates optimistic expectations for the company's future performance.
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Why Insider Transactions Are Important Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.
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.
Understanding Crucial Transaction Codes Examining transactions, investors often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates 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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