Stock Analysis
- United States
- /
- Oil and Gas
- /
- NYSE:MTDR
The Founder of Matador Resources Company (NYSE:MTDR), Joseph Foran, Just Bought A Few More Shares
Whilst it may not be a huge deal, we thought it was good to see that the Matador Resources Company (NYSE:MTDR) Founder, Joseph Foran, recently bought US$98k worth of stock, for US$48.77 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.
Check out our latest analysis for Matador Resources
Matador Resources Insider Transactions Over The Last Year
Notably, that recent purchase by Joseph Foran is the biggest insider purchase of Matador Resources shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of US$45.60. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Matador Resources insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Matador Resources insiders own 6.3% of the company, currently worth about US$340m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Matador Resources Insider Transactions Indicate?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Matador Resources. Looks promising! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 1 warning sign for Matador Resources and we suggest you have a look.
But note: Matador Resources may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
What are the risks and opportunities for Matador Resources?
Matador Resources Company, an independent energy company, engages in the exploration, development, production, and acquisition of oil and natural gas resources in the United States.
Rewards
Trading at 35.1% below our estimate of its fair value
Earnings have grown 33.3% per year over the past 5 years
Risks
Earnings are forecast to decline by an average of 9.7% per year for the next 3 years
Further research on
Matador Resources
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
About NYSE:MTDR
Matador Resources
Matador Resources Company, an independent energy company, engages in the exploration, development, production, and acquisition of oil and natural gas resources in the United States.
Undervalued with solid track record.
