Riley Exploration Permian (NYSE:REPX) Hits New 52-Week High - Should You Buy?

Key Points

• Shares hit a new 52-week high of $37.99 (last $37.84) and the stock carries a consensus "Buy" rating with an average price target of $41.50.
• The board approved a $100 million share repurchase program (up to ~18% of shares) and the company pays a quarterly dividend of $0.40 (annualized $1.60) for a ~4.2% yield.
• Insiders recently sold stakes (CEO sold 12,500 shares), leaving insiders with 4.7% ownership while institutions own ~58.9%; Riley trades at a low P/E of 6.75 with a market cap around $820.6 million.

Shares of Riley Exploration Permian, Inc. (NYSE:REPX - Get Free Report) hit a new 52-week high on Tuesday . The stock traded as high as $37.99 and last traded at $37.8350, with a volume of 11217 shares traded. The stock had previously closed at $36.84.

Analysts Set New Price Targets

REPX has been the topic of a number of research analyst reports. William Blair reaffirmed an "outperform" rating on shares of Riley Exploration Permian in a research note on Thursday, March 5th. Truist Financial started coverage on shares of Riley Exploration Permian in a report on Tuesday, March 24th. They issued a "buy" rating and a $47.00 price objective for the company. Finally, Zacks Research lowered shares of Riley Exploration Permian from a "strong-buy" rating to a "hold" rating in a report on Friday, February 13th. Two research analysts have rated the stock with a Strong Buy rating, one has issued a Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Buy" and a consensus target price of $41.50.

Riley Exploration Permian Stock Performance

The stock's fifty day simple moving average is $31.21 and its 200-day simple moving average is $28.30. The company has a current ratio of 0.70, a quick ratio of 0.64 and a debt-to-equity ratio of 0.53. The company has a market capitalization of $820.60 million, a price-to-earnings ratio of 6.75 and a beta of 1.10.

Riley Exploration Permian Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, February 5th. Shareholders of record on Thursday, January 22nd were issued a dividend of $0.40 per share. The ex-dividend date was Thursday, January 22nd. This represents a $1.60 annualized dividend and a yield of 4.2%. Riley Exploration Permian's dividend payout ratio is 21.08%.

Riley Exploration Permian declared that its board has approved a stock repurchase program on Tuesday, December 16th that permits the company to buyback $100.00 million in shares. This buyback authorization permits the company to reacquire up to 18% of its stock through open market purchases. Stock buyback programs are often a sign that the company's leadership believes its stock is undervalued.

Insider Activity at Riley Exploration Permian

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

Institutional Trading of Riley Exploration Permian

Institutional investors have recently bought and sold shares of the business. TrueMark Investments LLC acquired a new stake in Riley Exploration Permian during the third quarter worth approximately $3,027,000. Cannell & Spears LLC purchased a new stake in shares of Riley Exploration Permian in the third quarter valued at about $2,224,000. First Trust Advisors LP increased its holdings in shares of Riley Exploration Permian by 172.6% in the fourth quarter. First Trust Advisors LP now owns 126,507 shares of the company's stock valued at $3,340,000 after purchasing an additional 80,099 shares during the period. Raymond James Financial Inc. acquired a new position in shares of Riley Exploration Permian in the second quarter valued at approximately $2,033,000. Finally, Goldman Sachs Group Inc. boosted its holdings in shares of Riley Exploration Permian by 131.7% in the fourth quarter. Goldman Sachs Group Inc. now owns 106,720 shares of the company's stock valued at $2,817,000 after acquiring an additional 60,661 shares in the last quarter. 58.91% of the stock is owned by hedge funds and other institutional investors.

Riley Exploration Permian Company Profile

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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