Ranger Energy Services , Inc. (NYSE:RNGR) reported that its Chief Executive Officer, Stuart Bodden, has acquired additional shares in the company. According to the latest filing, Bodden purchased 7,785 shares of Class A Common Stock at an average price of $9.63 per share, totaling $74,969.
The transaction, which took place on June 4, 2024, was executed at prices ranging from $9.61 to $9.64, reflecting a weighted average price as noted in the filing's footnote. The CEO's purchase has brought his total direct ownership in the company to 324,088 shares following the transaction.
Ranger Energy Services, based in Houston, Texas, operates in the oil and gas field services industry. The company's stock is publicly traded, and these transactions are of interest to investors who track insider trading activities as a potential indicator of executive confidence in the company's future performance.
Investors and analysts often monitor insider purchases as they may suggest that the company's leadership believes the stock is undervalued or that there are positive developments ahead. However, it's important to note that such transactions do not always predict future stock performance and may be influenced by various factors.
For those interested in the detailed breakdown of the purchase prices for the shares, the filing indicates that the information will be made available to the Securities and Exchange Commission staff upon request. This recent purchase by CEO Stuart Bodden underscores a continued commitment to the company amidst the dynamic energy sector landscape.
In other recent news, Ranger Energy Services reported its Q1 2024 results, revealing a challenging quarter. The company's revenue decreased by 13% to $136.9 million, and the adjusted EBITDA stood at $10.9 million, both figures lower than the previous year. The company also reported a net loss of $800,000, a significant drop from a net income of $6.2 million in the prior year. Despite these challenges, the high specification rigs business showed resilience with stable revenues and year-over-year growth. The company also identified $4 million in annualized savings from a review of fixed costs.
On a positive note, Ranger Energy Services maintained a strong balance sheet with no net debt and a liquidity position of $66.5 million. The company anticipates modest growth in high specification rig and ancillary segments, while wireline activity is expected to remain flat. The company also expressed its commitment to returning capital to shareholders, planning a minimum of 25% share repurchases. These are the latest developments in the company's operations.
InvestingPro Insights
Following the news of CEO Stuart Bodden's recent share purchase in Ranger Energy Services, Inc. (NYSE:RNGR), investors may find additional context in the company's financial health and market performance. Ranger Energy Services' market capitalization stands at a modest $229.52 million, and the company trades with a price-to-earnings (P/E) ratio of 14.43, which adjusts to a more favorable 12.03 when considering the last twelve months as of Q1 2024. This suggests a potentially undervalued stock, aligning with the CEO's apparent confidence in the company's value.
From a performance standpoint, the company's revenue for the last twelve months as of Q1 2024 reached $616 million, though it experienced a slight decline of 4.11% from the previous year. Gross profit margins appear to be a point of concern, as they stand at 15.32%, indicating the company may be facing challenges in maintaining profitability levels. Despite these figures, Ranger Energy Services operates with a moderate level of debt and has liquid assets that exceed its short-term obligations, providing a level of financial stability.
Two key InvestingPro Tips that stand out for Ranger Energy Services include the company's aggressive share buyback strategy and a high shareholder yield, which may be particularly attractive to investors looking for companies with proactive capital return policies. Additionally, the stock generally trades with low price volatility, potentially offering a more stable investment opportunity in the often turbulent oil and gas field services industry.
For those seeking further insights, there are additional InvestingPro Tips available, which delve deeper into the company's financial nuances and future outlook. For instance, analysts predict that Ranger Energy Services will be profitable this year, and the company has been profitable over the last twelve months. Interested investors can access these tips and more detailed analytics by visiting InvestingPro. Plus, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking even more valuable investment information.
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