Michael Kearney, Board Member at Ranger Energy Services RNGR, reported an insider sell on December 2, according to a new SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Monday showed that Kearney sold 25,000 shares of Ranger Energy Services. The total transaction amounted to $409,964.

Tracking the Tuesday’s morning session, Ranger Energy Services shares are trading at $16.86, showing a down of 0.0%.

All You Need to Know About Ranger Energy Services

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 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’s Economic Impact: An Analysis

Decline in Revenue: Over the 3 months period, Ranger Energy Services faced challenges, resulting in a decline of approximately -6.93% in revenue growth as of 30 September, 2024. This signifies a reduction in the company’s top-line earnings. As compared to competitors, the company encountered difficulties, 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 13.01%, 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 0.39.

Debt Management: With a below-average debt-to-equity ratio of 0.08, Ranger Energy Services adopts a prudent financial strategy, indicating a balanced approach to debt management.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 26.34 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.67, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry averages at 5.6, Ranger Energy Services could be considered undervalued.

Market Capitalization Analysis: Below industry benchmarks, the company’s market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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Illuminating the Importance of Insider Transactions

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

In the realm of legality, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Exploring Key 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.

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