Investors Buy Large Volume of Call Options on Range Resources (NYSE:RRC)

Key Points

• Unusually high options activity: Investors purchased 3,167 Range Resources call options, about 186% above the average volume of 1,106.
• Analysts remain largely cautious: The stock has an average “Hold” rating and a consensus price target of $44.06, despite individual targets ranging from $37 to $53.
• Shares rose 2.6% to $44.98: Range Resources recently beat quarterly earnings estimates, reporting $0.79 in EPS versus the $0.66 consensus, and pays an annualized dividend of $0.40 per share.

Range Resources Corporation (NYSE:RRC - Get Free Report) was the target of unusually large options trading activity on Friday. Stock investors bought 3,167 call options on the stock. This is an increase of approximately 186% compared to the average volume of 1,106 call options.

Analysts Set New Price Targets

RRC has been the subject of a number of recent analyst reports. The Goldman Sachs Group reiterated a "neutral" rating and issued a $37.00 target price on shares of Range Resources in a research report on Tuesday. Stifel Nicolaus initiated coverage on Range Resources in a research note on Thursday, September 10th. They set a "hold" rating and a $46.00 price target for the company. Stephens lifted their price target on Range Resources from $52.00 to $53.00 and gave the company an "overweight" rating in a research report on Wednesday, July 22nd. UBS Group cut their price objective on Range Resources from $49.00 to $44.00 and set a "neutral" rating for the company in a report on Friday, October 2nd. Finally, BMO Capital Markets reaffirmed a "market perform" rating on shares of Range Resources in a research note on Monday, October 5th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, seventeen have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, Range Resources presently has an average rating of "Hold" and a consensus price target of $44.06.

Range Resources Trading Up 2.6%

Shares of Range Resources stock traded up $1.12 on Friday, reaching $44.98. 343,905 shares of the company were exchanged, compared to its average volume of 3,094,202. Range Resources has a fifty-two week low of $32.68 and a fifty-two week high of $48.31. The firm has a market capitalization of $10.51 billion, a price-to-earnings ratio of 12.39 and a beta of 0.71. The company has a current ratio of 0.65, a quick ratio of 0.65 and a debt-to-equity ratio of 0.18. The stock has a fifty day moving average price of $40.64 and a 200-day moving average price of $39.98.

Range Resources (NYSE:RRC - Get Free Report) last released its quarterly earnings results on Tuesday, July 21st. The oil and gas exploration company reported $0.79 earnings per share for the quarter, beating analysts' consensus estimates of $0.66 by $0.13. The business had revenue of $759.58 million during the quarter, compared to analyst estimates of $744.78 million. Range Resources had a return on equity of 18.63% and a net margin of 25.04%. Range Resources's revenue for the quarter was down 2.7% on a year-over-year basis. During the same quarter last year, the company posted $0.66 EPS. On average, analysts expect that Range Resources will post 3.78 EPS for the current year.

Range Resources Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, September 25th. Shareholders of record on Friday, September 11th were paid a dividend of $0.10 per share. The ex-dividend date of this dividend was Friday, September 11th. This represents a $0.40 dividend on an annualized basis and a yield of 0.9%. Range Resources's dividend payout ratio is currently 11.05%.

Insider Transactions at Range Resources

In other Range Resources news, Director Reginal Spiller sold 3,500 shares of the stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $40.00, for a total transaction of $140,000.00. Following the transaction, the director owned 13,421 shares of the company's stock, valued at $536,840. This trade represents a 20.68% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 1.10% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in shares of Range Resources during the second quarter valued at approximately $26,000. Northwestern Mutual Wealth Management Co. purchased a new stake in shares of Range Resources in the 2nd quarter valued at approximately $31,000. Root Financial Partners LLC acquired a new position in Range Resources in the 3rd quarter worth approximately $35,000. Ameritas Advisory Services LLC acquired a new position in Range Resources in the 2nd quarter worth approximately $44,000. Finally, Trust Co. of Vermont acquired a new position in Range Resources in the 2nd quarter worth approximately $45,000. 98.93% of the stock is currently owned by institutional investors and hedge funds.

About Range Resources

Range Resources Corporation is an independent natural gas, natural gas liquids and oil exploration and production company. Its operations are concentrated in the Appalachian Basin, particularly the Marcellus Shale in southwestern Pennsylvania, where the company develops unconventional wells and produces natural gas, condensate and natural gas liquids.

The company's activities include leasing and developing mineral properties, drilling and completing horizontal wells, and producing and marketing hydrocarbons.

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