A substantial insider sell was reported on September 23, by Ashley Kavanaugh, VP at Range Resources RRC, based on the recent SEC filing.

What Happened: Kavanaugh’s recent Form 4 filing with the U.S. Securities and Exchange Commission on Monday unveiled the sale of 12,700 shares of Range Resources. The total transaction value is $399,389.

Tracking the Tuesday’s morning session, Range Resources shares are trading at $31.59, showing a up of 0.22%.

Unveiling the Story Behind 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.

Breaking Down Range Resources’s Financial Performance

Revenue Challenges: Range Resources’s revenue growth over 3 months faced difficulties. As of 30 June, 2024, the company experienced a decline of approximately -0.0%. This indicates 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.

Evaluating Earnings Performance:

• Gross Margin: The company faces challenges with a low gross margin of 17.01%, 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 0.12.

Debt Management: Range Resources’s debt-to-equity ratio is below the industry average at 0.48, reflecting a lower dependency on debt financing and a more conservative financial approach.

Market Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 15.84 is lower than the industry average, implying a discounted valuation for Range Resources’s stock.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 3.25 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 6.62 reflects market recognition of Range Resources’s value, positioning it as more highly valued compared to industry peers.

Market Capitalization Analysis: Reflecting a smaller scale, the company’s market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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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.

When discussing 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 stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

A Closer Look at Important Transaction Codes

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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.

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.