Massive Insider Trade At Ranger Energy Services

Charles Leykum, Director at Ranger Energy Services RNGR, reported an insider sell on December 18, according to a new SEC filing.

What Happened: Leykum opted to sell 60,000 shares of Ranger Energy Services, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The transaction's total worth stands at $615,600.

In the Monday's morning session, Ranger Energy Services's shares are currently trading at $10.27, experiencing a down of 0.0%.

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.

Ranger Energy Services: A Financial Overview

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 its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Energy sector.

Insights into Profitability:

• Gross Margin: The company faces challenges with a low gross margin of 11.56%, 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 0.38.

Debt Management: With a below-average debt-to-equity ratio of 0.07, Ranger Energy Services adopts a prudent financial strategy, indicating a balanced approach to debt management.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: Ranger Energy Services's P/E ratio of 8.7 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The P/S ratio of 0.41 is lower than the industry average, implying a discounted valuation for Ranger Energy Services's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Ranger Energy Services's EV/EBITDA ratio at 3.31 suggests potential undervaluation, falling below industry averages.

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

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Why Insider Transactions Are Key in Investment Decisions

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

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

A Deep Dive into Insider Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously 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 indicates 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.