Joseph Wm Foran, Chairman and CEO at Matador Resources MTDR, reported an insider buy on April 30, according to a new SEC filing.
What Happened: In a recent Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, Foran increased their investment in Matador Resources by purchasing 5,000 shares through open-market transactions, signaling confidence in the company’s potential. The total transaction value is $204,300.
In the Thursday’s morning session, Matador Resources‘s shares are currently trading at $39.23, experiencing a down of 0.78%.
Delving into Matador Resources’s Background
Matador Resources Co is an independent energy company engaged in the exploration, development, production, and acquisition of oil and natural gas resources. The majority of the company’s assets are located in the United States, with an emphasis on oil and natural gas shale and other unconventional plays. Along with maintaining a portfolio of oil and natural gas properties, Matador works to identify and develop midstream opportunities that support and enhance its exploration and development business. The Company has two reportable business segments: exploration and production and midstream.
Matador Resources: A Financial Overview
Revenue Growth: Matador Resources’s revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2025, the company achieved a revenue growth rate of approximately 28.12%. This indicates a substantial increase in the company’s top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Energy sector.
Profitability Metrics:
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Gross Margin: The company shows a low gross margin of 41.43%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.
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Earnings per Share (EPS): Matador Resources’s EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 1.92.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.62.
Exploring Valuation Metrics Landscape:
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Price to Earnings (P/E) Ratio: The P/E ratio of 5.31 is lower than the industry average, implying a discounted valuation for Matador Resources’s stock.
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Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.34, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry averages at 3.21, Matador Resources could be considered undervalued.
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
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Why Insider Transactions Are Important
Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it’s crucial to evaluate them in conjunction with other investment factors.
When discussing legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Cracking Transaction Codes
When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Matador Resources’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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