Charles Leykum Implements A Sell Strategy: Offloads $605K In Ranger Energy Services Stock

Charles Leykum, Director at Ranger Energy Services RNGR, executed a substantial insider sell on December 13, according to an SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday outlined that Leykum executed a sale of 60,000 shares of Ranger Energy Services with a total value of $605,000.

As of Wednesday morning, Ranger Energy Services shares are down by 0.0%, currently priced at $9.96.

Discovering Ranger Energy Services: A Closer Look

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.

Unraveling the Financial Story of Ranger Energy Services

Revenue Growth: Ranger Energy Services'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 -7.12%. This indicates a decrease in the company's 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.

Key Insights into Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 11.56%, suggesting potential challenges 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 0.38.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.07.

Market Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 8.44 is lower than the industry average, implying a discounted valuation for Ranger Energy Services's stock.

• Price to Sales (P/S) Ratio: With a P/S ratio of 0.39 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): Ranger Energy Services's EV/EBITDA ratio at 3.21 suggests potential undervaluation, falling below industry averages.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Why Insider Transactions Are Important

It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

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

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

The Insider's Guide to Important 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 Ranger Energy Services's Insider Trades.

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