Joseph Wm Foran, Chairman and CEO at Matador Resources (NYSE:MTDR), disclosed an insider purchase on September 15, based on a new SEC filing.
What Happened: Foran's recent purchase of 2,000 shares of Matador Resources, disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday, reflects confidence in the company's potential. The total transaction value is $96,300.
Monitoring the market, Matador Resources's shares up by 0.88% at $46.9 during Tuesday's morning.
About Matador Resources
Matador Resources Co is an independent energy company engaged in the exploration, development, production, and acquisition of oil and natural gas resources. The majority of the company's assets are located in the United States, with an emphasis on oil and natural gas shale and other unconventional plays. Along with maintaining a portfolio of oil and natural gas properties, Matador works to identify and develop midstream opportunities that support and enhance its exploration and development business. The Company has two reportable business segments: exploration and production and midstream.
Financial Insights: Matador Resources
Revenue Growth: Over the 3 months period, Matador Resources showcased positive performance, achieving a revenue growth rate of 8.24% as of 30 June, 2025. This reflects a substantial increase 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.
Evaluating Earnings Performance:
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Gross Margin: With a high gross margin of 38.13%, the company demonstrates effective cost control and strong profitability relative to its peers.
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Earnings per Share (EPS): Matador Resources's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.21.
Debt Management: Matador Resources's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.63.
Understanding Financial Valuation:
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Price to Earnings (P/E) Ratio: The P/E ratio of 6.83 is lower than the industry average, implying a discounted valuation for Matador Resources's stock.
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Price to Sales (P/S) Ratio: With a P/S ratio of 1.55 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 3.57 is below the industry average, indicating that it may be relatively undervalued compared to peers.
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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The Impact of Insider Transactions on Investments
Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.
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.
Essential Transaction Codes Unveiled
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 Matador Resources's Insider Trades.
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