Riley Exploration Permian (NYSE:REPX) Hits New 1-Year High - What's Next?

Key Points

• Riley Exploration Permian (REPX) hit a new 52‑week high, trading as high as $41.26 intraday and last at $40.27, with a market cap of about $878 million and a P/E of 7.22.
• Research firms now give REPX a consensus Strong Buy rating with an average target price of $41.50 after upgrades and new coverage from William Blair, Zacks and Truist.
• The board approved a $100 million stock repurchase (up to 18% of shares), while insiders sold shares in February (insiders now own 4.7%) and institutional investors hold roughly 58.9% of the stock.

Riley Exploration Permian, Inc. (NYSE:REPX - Get Free Report) hit a new 52-week high during mid-day trading on Monday . The stock traded as high as $41.26 and last traded at $40.2740, with a volume of 66526 shares changing hands. The stock had previously closed at $39.54.

Analyst Ratings Changes

Several research firms have recently commented on REPX. William Blair reissued an "outperform" rating on shares of Riley Exploration Permian in a research report on Thursday, March 5th. Zacks Research raised Riley Exploration Permian from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, April 8th. Finally, Truist Financial started coverage on Riley Exploration Permian in a research report on Tuesday, March 24th. They set a "buy" rating and a $47.00 price objective on the stock. Three research analysts have rated the stock with a Strong Buy rating and one has issued a Buy rating to the company's stock. According to data from MarketBeat, Riley Exploration Permian presently has a consensus rating of "Strong Buy" and an average target price of $41.50.

Riley Exploration Permian Trading Up 3.0%

The firm has a market capitalization of $878.42 million, a PE ratio of 7.22 and a beta of 1.10. The company's 50-day simple moving average is $32.15 and its 200 day simple moving average is $28.64. The company has a quick ratio of 0.64, a current ratio of 0.70 and a debt-to-equity ratio of 0.53.

Riley Exploration Permian announced that its Board of Directors has approved a stock repurchase plan on Tuesday, December 16th that allows the company to buyback $100.00 million in shares. This buyback authorization allows the company to purchase up to 18% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's management believes its stock is undervalued.

Insider Activity at Riley Exploration Permian

In related news, CEO Bobby Riley sold 12,500 shares of Riley Exploration Permian stock in a transaction on Tuesday, February 10th. The shares were sold at an average price of $27.79, for a total value of $347,375.00. Following the sale, the chief executive officer owned 336,931 shares of the company's stock, valued at approximately $9,363,312.49. This trade represents a 3.58% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Corey Neil Riley sold 3,500 shares of Riley Exploration Permian stock in a transaction on Thursday, February 12th. The shares were sold at an average price of $27.41, for a total transaction of $95,935.00. Following the completion of the sale, the insider directly owned 158,565 shares in the company, valued at $4,346,266.65. This represents a 2.16% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 4.70% of the company's stock.

Institutional Investors Weigh In On Riley Exploration Permian

A number of large investors have recently modified their holdings of REPX. TrueMark Investments LLC purchased a new stake in shares of Riley Exploration Permian during the third quarter worth $3,027,000. Cannell & Spears LLC purchased a new stake in shares of Riley Exploration Permian during the third quarter worth $2,224,000. First Trust Advisors LP grew its holdings in shares of Riley Exploration Permian by 172.6% during the fourth quarter. First Trust Advisors LP now owns 126,507 shares of the company's stock worth $3,340,000 after buying an additional 80,099 shares in the last quarter. Raymond James Financial Inc. purchased a new stake in shares of Riley Exploration Permian during the second quarter worth $2,033,000. Finally, Goldman Sachs Group Inc. raised its holdings in shares of Riley Exploration Permian by 131.7% during the 4th quarter. Goldman Sachs Group Inc. now owns 106,720 shares of the company's stock worth $2,817,000 after acquiring an additional 60,661 shares during the period. Hedge funds and other institutional investors own 58.91% of the company's stock.

About Riley Exploration Permian

Riley Exploration Permian, Inc NYSE: REPX is a special purpose acquisition company formed to identify, acquire and operate assets in the oil and natural gas sector, with a dedicated focus on the Permian Basin. Incorporated in Delaware, the company completed its initial public offering on the New York Stock Exchange and is positioned to pursue a business combination with one or more upstream or midstream energy businesses. Riley Exploration Permian’s strategy centers on leveraging the region’s prolific reservoirs and existing infrastructure to drive growth and value for its shareholders.

The company seeks to target exploration and production assets in both the Midland and Delaware sub-basins of West Texas and southeastern New Mexico, where extensive pipeline networks and favorable geologic characteristics support efficient development.

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