Riley Exploration Permian (NYSE:REPX) Shares Down 7.4% - Should You Sell?

Key Points

• REPX shares fell 7.4% intraday to approximately $49.34, with trading volume 69% below the average. Despite the decline, analysts maintain a consensus “Buy” rating, though their average target of $43 is below the current price.
• Riley Exploration Permian raised its quarterly dividend to $0.42 per share from $0.40, implying an annualized dividend of $1.68 and a 3.5% yield.
• Insiders sold 20,000 shares worth about $721,765 over the past 90 days under pre-arranged trading plans, while institutional investors own approximately 58.91% of the company.

Riley Exploration Permian, Inc. (NYSE:REPX - Get Free Report)'s share price dropped 7.4% during mid-day trading on Monday. The stock traded as low as $49.60 and last traded at $49.3350. Approximately 99,405 shares changed hands during mid-day trading, a decline of 69% from the average session volume of 315,971 shares. The stock had previously closed at $53.27.

Analyst Upgrades and Downgrades

A number of research firms recently commented on REPX. Truist Financial lowered their price target on Riley Exploration Permian from $47.00 to $41.00 and set a "buy" rating on the stock in a report on Wednesday, August 12th. Roth Capital reiterated a "buy" rating on shares of Riley Exploration Permian in a research report on Thursday, October 22nd. Finally, Zacks Research raised shares of Riley Exploration Permian from a "hold" rating to a "strong-buy" rating in a research note on Friday, October 23rd. One equities research analyst has rated the stock with a Strong Buy rating and three have assigned a Buy rating to the stock. According to MarketBeat, Riley Exploration Permian currently has a consensus rating of "Buy" and a consensus target price of $43.00.

Riley Exploration Permian Stock Down 9.8%

The company has a fifty day simple moving average of $43.97 and a two-hundred day simple moving average of $36.10. The firm has a market capitalization of $1.06 billion, a PE ratio of 8.55 and a beta of 1.05. The company has a debt-to-equity ratio of 0.53, a quick ratio of 0.64 and a current ratio of 0.70.

Riley Exploration Permian Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 11th. Stockholders of record on Wednesday, October 28th will be paid a dividend of $0.42 per share. This is a boost from Riley Exploration Permian's previous quarterly dividend of $0.40. This represents a $1.68 dividend on an annualized basis and a dividend yield of 3.5%. The ex-dividend date is Wednesday, October 28th. Riley Exploration Permian's payout ratio is 30.43%.

Insider Buying and Selling at Riley Exploration Permian

In other news, CEO Bobby Riley sold 12,500 shares of Riley Exploration Permian stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $35.85, for a total value of $448,125.00. Following the transaction, the chief executive officer owned 482,983 shares of the company's stock, valued at $17,314,940.55. The trade was a 2.52% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Corey Riley sold 3,500 shares of the business's stock in a transaction on Monday, August 10th. The stock was sold at an average price of $35.20, for a total value of $123,200.00. Following the transaction, the insider owned 210,062 shares in the company, valued at approximately $7,394,182.40. This trade represents a 1.64% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 20,000 shares of company stock valued at $721,765. 4.20% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Riley Exploration Permian

Several hedge funds have recently modified their holdings of REPX. Nisa Investment Advisors LLC increased its stake in Riley Exploration Permian by 11.8% during the 3rd quarter. Nisa Investment Advisors LLC now owns 4,239 shares of the company's stock valued at $170,000 after purchasing an additional 446 shares in the last quarter. North Star Investment Management Corp. grew its position in shares of Riley Exploration Permian by 1.3% during the 2nd quarter. North Star Investment Management Corp. now owns 36,273 shares of the company's stock valued at $1,196,000 after acquiring an additional 473 shares during the period. Allworth Financial LP grew its holdings in Riley Exploration Permian by 1,831.8% in the second quarter. Allworth Financial LP now owns 1,275 shares of the company's stock valued at $42,000 after purchasing an additional 1,209 shares during the period. VIRGINIA RETIREMENT SYSTEMS ET Al grew its position in shares of Riley Exploration Permian by 6.2% in the third quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 25,750 shares of the company's stock valued at $1,030,000 after purchasing an additional 1,500 shares during the period. Finally, Bank of New York Mellon Corp increased its stake in shares of Riley Exploration Permian by 0.7% during the first quarter. Bank of New York Mellon Corp now owns 235,786 shares of the company's stock worth $8,594,000 after purchasing an additional 1,623 shares in the last quarter. Institutional investors and hedge funds own 58.91% of the company's stock.

Riley Exploration Permian Company Profile

Riley Exploration Permian, Inc is an independent oil and natural gas exploration and production company focused on developing hydrocarbon properties in the Permian Basin. Its activities include acquiring acreage, drilling and completing wells, and producing crude oil, natural gas and natural gas liquids.

The company's operations are concentrated in the U.S. Permian Basin, with a particular focus on properties in southeastern New Mexico. Riley Exploration Permian primarily uses horizontal drilling and related completion techniques to develop its operated acreage and extract resources from unconventional formations.

Riley Exploration Permian became a publicly traded company in 2021.

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