Benzinga - by Benzinga Insights, Benzinga Staff Writer.
A new SEC filing reveals that Reginal Spiller, Director at Range Resources (NYSE:RRC), made a notable insider purchase on May 9,.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Thursday showed that Spiller purchased 5,410 shares of Range Resources. The total transaction amounted to $200,007.
The latest update on Friday morning shows Range Resources shares up by 0.03%, trading at $36.92.
All You Need to Know About 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 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.
Profitability Metrics:
- Gross Margin: The company faces challenges with a low gross margin of 27.89%, suggesting potential difficulties in cost control and profitability compared to its peers.
- Earnings per Share (EPS): With an EPS below industry norms, Range Resources exhibits below-average bottom-line performance with a current EPS of 0.38.
Valuation Metrics: A Closer Look
- Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 18.45, the stock indicates an attractive valuation, potentially presenting a buying opportunity.
- Price to Sales (P/S) Ratio: The current P/S ratio of 3.8 is above industry norms, reflecting an elevated valuation for Range Resources's stock and potential overvaluation 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 Pay Attention to Insider Transactions While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.
Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.
Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.
Understanding Crucial 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 Range Resources's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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