Smart Money Move: John A Crum Grabs $83K Worth Of Ring Energy Stock

Disclosed in the latest SEC filing, a significant insider purchase on December 4, involves John A Crum, Board Member at Ring Energy REI.

What Happened: In a Form 4 filing on Monday with the U.S. Securities and Exchange Commission, it was disclosed that Crum bought 50,000 shares of Ring Energy, amounting to a total of $83,700.

Ring Energy's shares are actively trading at $1.58, experiencing a down of 0.0% during Tuesday's morning session.

All You Need to Know About Ring Energy

Ring Energy Inc is an independent exploration and production company based in The Woodlands, Texas and is engaged in oil and natural gas development, production, acquisition, and exploration activities currently focused in the Permian Basin of Texas. The drilling operations of the company target the oil and liquids rich producing formations in the Northwest Shelf, the Central Basin Platform, and the Delaware Basin all of which are part of the Permian Basin in Texas.

A Deep Dive into Ring Energy's Financials

Revenue Growth: Ring Energy's revenue growth over a period of 3 months has faced challenges. As of 30 September, 2023, the company experienced a revenue decline of approximately -0.77%. This indicates a decrease 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.

Profitability Metrics:

• Gross Margin: Achieving a high gross margin of 50.18%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): With an EPS below industry norms, Ring Energy exhibits below-average bottom-line performance with a current EPS of -0.04.

Debt Management: Ring Energy's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.59.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 5.85 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a P/S ratio of 0.82 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Ring Energy's EV/EBITDA ratio of 3.91 exceeds industry averages, indicating a premium valuation in the market

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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Illuminating the Importance of 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.

Unlocking the Meaning of Transaction Codes

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 Ring Energy's Insider Trades.

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