Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Charles Leykum, Director at Ranger Energy Services (NYSE:RNGR), disclosed an insider sell on December 4, according to a recent SEC filing.
What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Monday, Leykum sold 150,170 shares of Ranger Energy Services. The total transaction value is $1,517,642.
Ranger Energy Services shares are trading down 0.0% at $10.32 at the time of this writing on Tuesday morning.
Get to Know Ranger Energy Services Better Ranger Energy Services Inc is a provider of onshore high specification (high-spec) well service rigs, wireline services, and additional processing solutions and ancillary services in the United States. It offers a range of well site services to leading U.S. exploration and production (E&P) companies that are fundamental to establishing and enhancing the flow of oil and natural gas throughout the productive life of a well. The segments of the group are High Specification Rigs, Wireline Services and Processing Solutions and Ancillary Services, of which key revenue is derived from High Specification Rigs segment.
Ranger Energy Services: Delving into Financials Revenue Growth: Ranger Energy Services's revenue growth over a period of 3 months has faced challenges. As of 30 September, 2023, the company experienced a revenue decline of approximately -7.12%. 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.
Profitability Metrics: Unlocking Value
- Gross Margin: The company faces challenges with a low gross margin of 11.56%, suggesting potential difficulties in cost control and profitability compared to its peers.
- Earnings per Share (EPS): Ranger Energy Services's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 0.38.
Understanding Financial Valuation:
- Price to Earnings (P/E) Ratio: The current P/E ratio of 8.75 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
- Price to Sales (P/S) Ratio: The P/S ratio of 0.41 is lower than the industry average, implying a discounted valuation for Ranger Energy Services's stock in relation to sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 3.32, Ranger Energy Services's EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation
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The Relevance of Insider Transactions While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.
In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
The Insider's Guide to Important Transaction Codes For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes 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 Ranger Energy Services's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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