In a recent transaction on June 4, Ranger Energy Services , Inc.'s (NYSE:RNGR) Chief Financial Officer, Melissa Cougle, acquired shares of the company's Class A Common Stock, signaling a vote of confidence in the firm's prospects. The purchase, which involved 7,500 shares, amounted to a total of $71,982 at an average price of $9.5976 per share.
The transaction was conducted in multiple parts, with prices ranging from $9.585 to $9.5982. This range represents the weighted average price of the shares acquired by Cougle. Following this purchase, the CFO now owns a total of 71,842 shares in Ranger Energy Services, Inc., a leading provider of oil and gas field services.
Investors often look to insider transactions such as these to gauge the confidence that company executives have in the financial health and future performance of their companies. While the motives behind such purchases can vary, they can sometimes suggest that insiders believe the stock is undervalued or that there are positive developments ahead for the company.
Ranger Energy Services has not released any official statement regarding the transaction, and it remains to be seen how this acquisition will impact the company's performance or stock price moving forward. However, transactions of this nature are always of note to current and potential investors who keep a close watch on insider activity as part of their investment strategy.
In other recent news, Ranger Energy Services reported its first quarter results for 2024, marking a challenging period with a 13% decrease in revenue and a net loss. Despite these obstacles, the company's high specification rigs business demonstrated resilience with stable revenues and year-over-year growth. The company's Q1 revenue dropped to $136.9 million, while adjusted EBITDA stood at $10.9 million. Ranger reported a net loss of $800,000, contrasting with the previous year's net income of $6.2 million.
Maintaining financial stability, Ranger Energy Services kept a strong balance sheet with no net debt and a liquidity position of $66.5 million. The company also identified $4 million in annualized savings from a review of fixed costs. Despite market uncertainties, Ranger anticipates year-on-year growth in most business lines in the upcoming quarter, particularly in the high specification rig and ancillary segments, with wireline activity expected to remain flat.
In alignment with its commitment to shareholder returns, Ranger Energy Services plans a minimum of 25% share repurchases. The company's executives reiterated this commitment, indicating that share repurchases would continue opportunistically. These are among the recent developments as Ranger Energy Services navigates challenging market conditions with a focus on long-term value and shareholder returns.
InvestingPro Insights
Ranger Energy Services, Inc. (NYSE:RNGR) has recently been the subject of attention due to insider buying activity by its Chief Financial Officer. This has prompted investors to take a closer look at the company's financial metrics and market performance. According to InvestingPro, Ranger Energy Services has a market capitalization of approximately $229.52 million and a Price/Earnings (P/E) ratio of 14.43. When adjusted for the last twelve months as of Q1 2024, the P/E ratio stands at a slightly lower 12.01, indicating a potentially more attractive valuation compared to the current P/E ratio.
One of the InvestingPro Tips for RNGR highlights that the company has been aggressively buying back shares, which could be a sign of management's belief in the company's value and a potential catalyst for stock price appreciation. Additionally, Ranger Energy Services operates with a moderate level of debt and has liquid assets that exceed short-term obligations, suggesting a stable financial position.
In terms of performance, the company has experienced a decline in revenue growth, with a -4.11% change over the last twelve months as of Q1 2024. However, the company's gross profit margin during the same period was 15.32%, and analysts predict the company will be profitable this year. Furthermore, Ranger Energy Services offers a dividend yield of 2.02%, with the last dividend's ex-date being May 16, 2024.
For potential investors interested in a deeper analysis, there are additional InvestingPro Tips available for Ranger Energy Services on https://www.investing.com/pro/RNGR. These tips provide further insights into the company's stock performance, financial health, and future outlook. Moreover, by using the coupon code PRONEWS24, users can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to a wealth of investment knowledge and data.
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