It was reported on November 26, that Krishna Shivram, Board Member at Ranger Energy Services (NYSE:RNGR) executed a significant insider sell, according to an SEC filing.
What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday outlined that Shivram executed a sale of 30,000 shares of Ranger Energy Services with a total value of $506,973.
Ranger Energy Services shares are trading down 0.0% at $16.67 at the time of this writing on Wednesday morning.
About Ranger Energy Services
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 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.
Understanding the Numbers: Ranger Energy Services's Finances
Revenue Growth: Ranger Energy Services's revenue growth over a period of 3 months has faced challenges. As of 30 September, 2024, the company experienced a revenue decline of approximately -6.93%. This indicates a decrease in the company's top-line earnings. When compared to others in the Energy sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Key Profitability Indicators:
Gross Margin: With a low gross margin of 13.01%, 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 0.39.
Debt Management: Ranger Energy Services's debt-to-equity ratio is below the industry average at 0.08, reflecting a lower dependency on debt financing and a more conservative financial approach.
Valuation Overview:
Price to Earnings (P/E) Ratio: Ranger Energy Services's P/E ratio of 26.05 is below the industry average, suggesting the stock may be undervalued.
Price to Sales (P/S) Ratio: The current P/S ratio of 0.67 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry averages at 5.54, Ranger Energy Services could be considered undervalued.
Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
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Navigating 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.
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.
Understanding Crucial Transaction Codes
Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Ranger Energy Services's Insider Trades.
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