Board Member At Riley Exploration Permian Sells $109K Of Stock

Brent Arriaga, Board Member at Riley Exploration Permian REPX, reported an insider sell on June 25, according to a new SEC filing.

What Happened: Arriaga's decision to sell 3,918 shares of Riley Exploration Permian was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $109,508.

Riley Exploration Permian shares are trading up 1.84% at $26.59 at the time of this writing on Thursday morning.

Delving into Riley Exploration Permian's Background

Riley Exploration Permian Inc is engaged in the business of exploration for and production of oil and natural gas. The company operations are in Kansas Properties and Tennessee Properties, among others.

Financial Insights: Riley Exploration Permian

Revenue Growth: Over the 3 months period, Riley Exploration Permian showcased positive performance, achieving a revenue growth rate of 2.72% as of 31 March, 2025. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Energy sector.

Interpreting Earnings Metrics:

• Gross Margin: The company excels with a remarkable gross margin of 56.92%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): Riley Exploration Permian's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.36.

Debt Management: Riley Exploration Permian's debt-to-equity ratio stands notably higher than the industry average, reaching 0.48. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Exploring Valuation Metrics Landscape:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 5.58 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.34, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Riley Exploration Permian's EV/EBITDA ratio at 3.5 suggests potential undervaluation, falling below industry averages.

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

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Delving Into the Significance of Insider Transactions

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

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.

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 Riley Exploration Permian's Insider Trades.

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