Riley Exploration Permian, Inc. (NYSE:REPX) has reported that its CFO & EVP Strategy, Philip A. Riley, recently sold a significant amount of company stock. According to the latest filings, the executive sold shares in two separate transactions, amounting to over $416,000.
The first sale occurred on September 27, 2024, where Riley disposed of 6,039 shares at a price of $26.52 each. The second transaction took place on October 1, 2024, with 9,664 shares sold at $26.49 per share. These sales resulted in a combined total of $416,153, with the price per share ranging between $26.49 and $26.52.
It is noted in the footnotes of the filing that the shares were surrendered to satisfy the withholding tax liability incurred upon the vesting of shares of restricted stock. These shares were originally issued to Riley under the Riley Exploration Permian, Inc. 2021 Long Term Incentive Plan. The disposal of these shares does not represent discretionary trades by Riley.
Following these transactions, the remaining holdings of Philip A. Riley in Riley Exploration Permian include both vested and restricted shares. As of the last reported sale, Riley owns 124,239 shares, which includes 65,294 shares of restricted common stock that are subject to vesting and certain other restrictions.
Investors often monitor insider sales as they can provide insights into an executive's perspective on the company's current valuation and future prospects. However, it's important to consider that there can be various reasons for such sales, including personal financial management and tax obligations.
Riley Exploration Permian, Inc., headquartered in Oklahoma City, Oklahoma, operates within the crude petroleum and natural gas industry. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol REPX.
In other recent news, Riley Exploration Permian has seen a reduction in its stock price target from $48 to $45 by Truist Securities, which continues to maintain a Buy rating on the company's shares. This change is based on a dual-method valuation approach, considering a revised financial model for the years 2024 through 2026. The firm's 2025 EBITDAX estimate of $319 million, surpassing the consensus estimate of $295 million, and a Free Cash Flow to Enterprise Value Yield assumption of 14.0% were key factors in the new price target.
On the earnings front, Riley Exploration Permian reported a 4% increase in net oil production and a 7% rise in operating cash flow before working capital changes at the start of 2024. The company also successfully converted 40% of that cash flow into free cash flow.
In terms of mergers and acquisitions, the firm recently acquired 13,900 contiguous net acres in Eddy County, New Mexico, a move anticipated to boost its drilling locations and infrastructure. Additionally, the company's RPC (NYSE:RES) Power project is progressing, with plans to cover almost all power demand for operations in Yoakum County through self-generated power using residue gas.
Finally, Riley Exploration Permian has drilled seven net wells in the first quarter and plans to resume drilling operations soon. These are among the recent developments providing insights into the company's performance and strategic decisions.
InvestingPro Insights
To provide additional context to the recent insider sale by CFO Philip A. Riley, let's examine some key financial metrics and insights from InvestingPro for Riley Exploration Permian, Inc. (NYSE:REPX).
As of the latest data, REPX has a market capitalization of $577.35 million and a P/E ratio of 5.46, suggesting the stock may be undervalued compared to industry peers. This relatively low valuation is particularly interesting given the company's strong financial performance. InvestingPro data shows that REPX has been profitable over the last twelve months, with a revenue of $413.27 million and an impressive revenue growth of 24.09% during this period.
One InvestingPro Tip highlights that REPX has raised its dividend for 3 consecutive years, which may be appealing to income-focused investors. The current dividend yield stands at 5.44%, which is notably high in the current market environment. This consistent dividend growth, coupled with the company's profitability, could indicate management's confidence in the company's financial stability and future prospects.
However, it's worth noting that another InvestingPro Tip indicates that 2 analysts have revised their earnings downwards for the upcoming period. This could potentially explain the recent insider sale, although as mentioned in the article, the sale was related to tax obligations rather than a discretionary trade.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for REPX, providing a deeper understanding of the company's financial health and market position.
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