Matador Resources EVP Trades $52K In Company Stock

On February 27, a substantial insider purchase was made by William Thomas Elsener, EVP at Matador Resources MTDR, as per the latest SEC filing.

What Happened: Elsener made a significant move by purchasing 1,000 shares of Matador Resources as reported in a Form 4 filing with the U.S. Securities and Exchange Commission. The transaction’s total worth stands at $52,400.

As of Thursday morning, Matador Resources shares are up by 1.92%, currently priced at $53.13.

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.

Understanding the Numbers: Matador Resources’s Finances

Revenue Growth: Matador Resources’s revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 17.54%. This indicates a substantial increase in the company’s top-line earnings. When compared to others in the Energy sector, the company excelled with a growth rate higher than the average among peers.

Profitability Metrics:

• Gross Margin: The company faces challenges with a low gross margin of 42.0%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Matador Resources’s EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 1.72.

Debt Management: Matador Resources’s debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.67.

Valuation Overview:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 7.3 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: With a P/S ratio of 1.86 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Matador Resources’s EV/EBITDA ratio at 4.12 suggests potential undervaluation, falling below industry averages.

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 Importance of Insider Transactions

Insider transactions shouldn’t be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

Considering the legal perspective, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Pointing towards optimism, a company insider’s new purchase signals their positive anticipation for the stock to rise.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Important Transaction Codes

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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 Matador Resources’s Insider Trades.

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