Insider Unloading: REL US Centennial Holdings LLC Sells $72.80M Worth Of Permian Resources Shares

REL US Centennial Holdings LLC, Board Member at Permian Resources PR, disclosed an insider sell on December 21, according to a recent SEC filing.

What Happened: LLC's decision to sell 5,630,631 shares of Permian Resources was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value of the sale is $72,804,058.

As of Friday morning, Permian Resources shares are up by 0.89%, currently priced at $13.59.

Get to Know Permian Resources Better

Permian Resources Corp is an independent oil and natural gas company focused on generating outsized returns to stakeholders through the responsible acquisition, optimization and development of oil and liquids-rich natural gas assets.

Breaking Down Permian Resources's Financial Performance

Revenue Growth: Permian Resources displayed positive results in 3 months. As of 30 September, 2023, the company achieved a solid revenue growth rate of approximately 37.97%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Energy sector.

Holistic Profitability Examination:

• Gross Margin: The company excels with a remarkable gross margin of 54.82%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): With an EPS below industry norms, Permian Resources exhibits below-average bottom-line performance with a current EPS of 0.14.

Debt Management: Permian Resources's debt-to-equity ratio is below the industry average at 0.63, reflecting a lower dependency on debt financing and a more conservative financial approach.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: Permian Resources's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 15.13.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 1.69, 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): At 5.38, the company's EV/EBITDA ratio outperforms industry norms, reflecting positive market perception. This positioning indicates optimistic expectations for the company's future performance.

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.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Why Pay Attention to Insider Transactions

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

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.

Transaction Codes To Focus On

When analyzing transactions, investors tend to focus on those in the open market, detailed 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 Permian Resources's Insider Trades.

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