Sell Alert: Charles Leykum Cashes Out $617K In Ranger Energy Services Stock

Revealing a significant insider sell on December 7, Charles Leykum, Board Member at Ranger Energy Services RNGR, as per the latest SEC filing.

What Happened: Leykum's recent move involves selling 60,000 shares of Ranger Energy Services. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value is $617,000.

As of Friday morning, Ranger Energy Services shares are down by 0.0%, currently priced at $10.33.

Delving into Ranger Energy Services's Background

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 leading 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.

A Deep Dive into Ranger Energy Services's Financials

Decline in Revenue: Over the 3 months period, Ranger Energy Services faced challenges, resulting in a decline of approximately -7.12% in revenue growth as of 30 September, 2023. 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.

Exploring Profitability:

• Gross Margin: With a low gross margin of 11.56%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Ranger Energy Services's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 0.38.

Debt Management: Ranger Energy Services's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.07.

Financial Valuation:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 8.75, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.41, 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 a below-average EV/EBITDA ratio of 3.32, Ranger Energy Services presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

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Illuminating the Importance of Insider Transactions

Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.

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.

Navigating the World of Insider Transaction Codes

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely 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 Ranger Energy Services's Insider Trades.

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