Insider Decision: Edenbrook Capital LLC Offloads $4.90M Worth Of PHX Minerals Stock

Revealing a significant insider sell on December 26, Edenbrook Capital LLC, 10% Owner at PHX Minerals PHX, as per the latest SEC filing.

What Happened: After conducting a thorough analysis, LLC sold 1,575,000 shares of PHX Minerals. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total transaction value is $4,898,407.

The latest market snapshot at Wednesday morning reveals PHX Minerals shares down by 0.0%, trading at $3.35.

All You Need to Know About PHX Minerals

PHX Minerals, previously Panhandle Oil & Gas, is an oil and natural gas mineral company that has employed a strategy to shift the core of its business away from drilling and toward perpetual mineral and natural gas ownership. The company owns substantial mineral acreage, principally in Oklahoma, North Dakota, Texas, New Mexico, and Arkansas, but still maintains legacy interests in natural gas and oil properties that have retired operations. The sale of natural gas, natural gas liquids, and oil continues to be the primary source of the company's revenue.

Financial Milestones: PHX Minerals's Journey

Decline in Revenue: Over the 3 months period, PHX Minerals faced challenges, resulting in a decline of approximately -47.67% 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: Achieving a high gross margin of 61.69%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): PHX Minerals's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 0.05.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.26.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 5.68, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 2.16 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 4.67 reflects market recognition of PHX Minerals's value, positioning it as more highly valued compared to industry peers.

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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Uncovering the Importance of Insider Activity

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

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.

Deciphering Transaction Codes in Insider Filings

For investors, a primary focus lies on transactions occurring in the open market, as indicated 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 PHX Minerals's Insider Trades.

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