Riley Exploration Permian (NYSE:REPX) Shares Gap Down - What's Next?

Key Points

• Shares gapped down: REPX closed at $40.26 the prior session, opened at $38.25 and was last trading near $35.995 with about 181,580 shares changing hands.
• Analysts remain bullish: the stock holds a consensus "Strong Buy" rating with a consensus price target of $41.50 and individual targets as high as $47 (Truist).
• Fundamentals and buyback signal confidence: Riley has a market cap of roughly $765.6M, a low P/E of 6.28, and an authorized $100M share repurchase plan to buy up to ~18% of outstanding shares.

Riley Exploration Permian, Inc. (NYSE:REPX - Get Free Report) gapped down before the market opened on Tuesday . The stock had previously closed at $40.26, but opened at $38.25. Riley Exploration Permian shares last traded at $35.9950, with a volume of 181,580 shares trading hands.

Analysts Set New Price Targets

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

Riley Exploration Permian Stock Performance

The business has a 50 day moving average price of $32.40 and a two-hundred day moving average price of $28.73. The stock has a market cap of $765.61 million, a PE ratio of 6.28 and a beta of 1.10. The company has a debt-to-equity ratio of 0.53, a current ratio of 0.70 and a quick ratio of 0.64.

Riley Exploration Permian declared that its Board of Directors has approved a stock repurchase plan 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 shares through open market purchases. Shares buyback plans are usually a sign that the company's management believes its stock is undervalued.

Insider Buying and Selling at Riley Exploration Permian

In other news, CEO Bobby Riley sold 12,500 shares of the firm's stock in a transaction on 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 transaction, the chief executive officer directly owned 336,931 shares in the company, valued at $9,363,312.49. This trade represents a 3.58% 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, insider Corey Neil Riley sold 3,500 shares of the firm's stock in a transaction on Thursday, February 12th. The shares were sold at an average price of $27.41, for a total value of $95,935.00. Following the transaction, the insider owned 158,565 shares of the company's stock, valued at $4,346,266.65. The trade was a 2.16% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 4.70% of the stock is owned by company insiders.

Hedge Funds Weigh In On Riley Exploration Permian

Institutional investors and hedge funds have recently modified their holdings of the stock. Bank of America Corp DE increased its holdings in Riley Exploration Permian by 5.4% in the 2nd quarter. Bank of America Corp DE now owns 7,806 shares of the company's stock worth $205,000 after buying an additional 402 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in Riley Exploration Permian by 6.1% in the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 7,188 shares of the company's stock worth $189,000 after buying an additional 411 shares in the last quarter. MetLife Investment Management LLC increased its holdings in Riley Exploration Permian by 6.5% in the 4th quarter. MetLife Investment Management LLC now owns 8,410 shares of the company's stock worth $222,000 after buying an additional 516 shares in the last quarter. Empowered Funds LLC increased its holdings in Riley Exploration Permian by 1.8% in the 1st quarter. Empowered Funds LLC now owns 31,549 shares of the company's stock worth $920,000 after buying an additional 562 shares in the last quarter. Finally, State of Wyoming increased its holdings in Riley Exploration Permian by 12.8% in the 4th quarter. State of Wyoming now owns 5,011 shares of the company's stock worth $132,000 after buying an additional 567 shares in the last quarter. 58.91% of the stock is currently owned by 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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