Trade Alert: Independent Director Of Ranger Energy Services Brett Agee Has Sold Stock

We wouldn't blame Ranger Energy Services, Inc. (NYSE:RNGR) shareholders if they were a little worried about the fact that Brett Agee, the Independent Director recently netted about US$1.0m selling shares at an average price of US$16.67. That diminished their holding by a very significant 100%, which arguably implies a strong desire to reallocate capital.

See our latest analysis for Ranger Energy Services

The Last 12 Months Of Insider Transactions At Ranger Energy Services

In the last twelve months, the biggest single sale by an insider was when the insider, Charles Leykum, sold US$1.9m worth of shares at a price of US$11.31 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$16.83. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 80% of Charles Leykum's stake.

In the last twelve months insiders purchased 40.29k shares for US$394k. But insiders sold 246.51k shares worth US$3.1m. In total, Ranger Energy Services insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership Of Ranger Energy Services

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Ranger Energy Services insiders own about US$14m worth of shares. That equates to 3.7% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Ranger Energy Services Insiders?

Insiders sold Ranger Energy Services shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ranger Energy Services. In terms of investment risks, we've identified 2 warning signs with Ranger Energy Services and understanding these should be part of your investment process.

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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 of direct interests only, but not derivative transactions or indirect interests.

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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.