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

Key Points

• Riley Exploration Permian shares gapped down, opening at $35.86 after a $40.00 close and last trading near $38.03 on volume of about 115,600, signaling short-term volatility.
• Analysts maintain a consensus "Buy" rating with an average target of $41.50 (two Strong Buy, one Buy, one Hold), and Truist has a $47 price target.
• The company pays a 4.2% dividend ($0.40 quarterly) and has authorized a $100 million share buyback (~18% of shares), although insiders (including the CEO) have recently sold stock.

Riley Exploration Permian, Inc. (NYSE:REPX - Get Free Report) gapped down prior to trading on Wednesday . The stock had previously closed at $40.00, but opened at $35.86. Riley Exploration Permian shares last traded at $38.0250, with a volume of 115,618 shares trading hands.

Wall Street Analysts Forecast Growth

REPX has been the subject of several analyst reports. Zacks Research cut Riley Exploration Permian from a "strong-buy" rating to a "hold" rating in a research note on Friday, February 13th. William Blair restated an "outperform" rating on shares of Riley Exploration Permian in a research note on Thursday, March 5th. Finally, Truist Financial initiated coverage on Riley Exploration Permian in a research note on Tuesday, March 24th. They set a "buy" rating and a $47.00 price target for the company. Two equities research analysts have rated the stock with a Strong Buy rating, one has issued a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Buy" and an average target price of $41.50.

Riley Exploration Permian Price Performance

The stock has a fifty day moving average of $31.46 and a two-hundred day moving average of $28.39. The stock has a market cap of $827.68 million, a price-to-earnings ratio of 6.81 and a beta of 1.10. 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 Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, February 5th. Shareholders of record on Thursday, January 22nd were issued a $0.40 dividend. The ex-dividend date of this dividend 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 announced that its board has authorized a stock buyback plan on Tuesday, December 16th that permits the company to repurchase $100.00 million in outstanding shares. This repurchase authorization permits the company to reacquire up to 18% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's board believes its shares are undervalued.

Insider Buying and Selling at Riley Exploration Permian

In other news, insider Corey Neil Riley sold 3,500 shares of the company's stock in a transaction on 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 in the company, valued at $4,346,266.65. This represents a 2.16% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Bobby Riley sold 12,500 shares of the company's 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 completion of the sale, the chief executive officer owned 336,931 shares in the company, valued at $9,363,312.49. This represents a 3.58% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 3.90% of the stock is currently owned by corporate insiders.

Institutional Trading of Riley Exploration Permian

Institutional investors and hedge funds have recently made changes to their positions in the stock. Denali Advisors LLC lifted its position in Riley Exploration Permian by 211.8% during the third quarter. Denali Advisors LLC now owns 88,495 shares of the company's stock worth $2,399,000 after buying an additional 60,110 shares during the period. TrueMark Investments LLC purchased a new position in Riley Exploration Permian during the third quarter worth about $3,027,000. Kennondale Capital Management LLC lifted its position in Riley Exploration Permian by 118.9% during the third quarter. Kennondale Capital Management LLC now owns 75,667 shares of the company's stock worth $2,051,000 after buying an additional 41,095 shares during the period. American Century Companies Inc. lifted its position in Riley Exploration Permian by 9.4% during the third quarter. American Century Companies Inc. now owns 581,491 shares of the company's stock worth $15,764,000 after buying an additional 49,843 shares during the period. Finally, Cannell & Spears LLC purchased a new position in Riley Exploration Permian during the third quarter worth about $2,224,000. 58.91% of the stock is currently owned by hedge funds and other institutional investors.

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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