On November 3, a substantial insider purchase was made by Joseph Wm Foran, Chairman and CEO at Matador Resources (NYSE:MTDR), as per the latest SEC filing.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Monday showed that Foran purchased 10,842 shares of Matador Resources. The total transaction amounted to $430,650.
At Monday morning, Matador Resources shares are up by 1.39%, trading at $40.01.
All You Need to Know 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.
Matador Resources's Economic Impact: An Analysis
Revenue Growth: Over the 3 months period, Matador Resources showcased positive performance, achieving a revenue growth rate of 6.39% as of 30 September, 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.
Holistic Profitability Examination:
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Gross Margin: The company faces challenges with a low gross margin of 35.08%, suggesting potential difficulties in cost control and profitability compared 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 1.42.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.6.
Exploring Valuation Metrics Landscape:
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Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 6.32 is lower than the industry average, indicating potential undervaluation for the stock.
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Price to Sales (P/S) Ratio: With a P/S ratio of 1.29 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): Matador Resources's EV/EBITDA ratio, lower than industry averages at 3.23, indicates attractively priced shares.
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
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Exploring the Significance of Insider Trading
Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.
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.
Transaction Codes Worth Your Attention
When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates 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 Matador Resources's Insider Trades.
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