Benzinga - by Benzinga Insights, Benzinga Staff Writer.
STEVEN GRAY, Director at Range Resources (NYSE:RRC), disclosed an insider purchase on May 9, based on a new SEC filing.
What Happened: In a Form 4 filing on Thursday with the U.S. Securities and Exchange Commission, it was disclosed that GRAY bought 5,410 shares of Range Resources, amounting to a total of $200,007.
During Friday's morning session, Range Resources shares down by 2.6%, currently priced at $35.95.
Get to Know Range Resources Better 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 Negative Revenue Trend: Examining Range Resources's financials over 3 months reveals challenges. As of 31 March, 2024, the company experienced a decline of approximately -26.84% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Energy sector.
Profitability Metrics: Unlocking Value
- 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, signaling challenges in bottom-line performance with a current EPS of 0.38.
In-Depth Valuation Examination:
- Price to Earnings (P/E) Ratio: Range Resources's P/E ratio of 18.45 is below the industry average, suggesting the stock may be undervalued.
- 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): With an EV/EBITDA ratio of 9.74, the company's market valuation exceeds industry averages.
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Why Pay Attention to Insider Transactions Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.
In the context of 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 outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed 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.
Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.
Essential Transaction Codes Unveiled Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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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