Alvin Libin, a major holder of Riley Exploration Permian (REPX), recently added 75,000 shares. The buy increased his holdings by 4%, and came to a total cost of $2,025,000.
Libin was the last buyer with a 100,000 share buy back in September. Otherwise, company insiders have been sellers of shares. The largest sales have some from another major holder, although Riley’s President and CEO has also been a seller since the start of the year.
Overall, Riley insiders own 20.0% of shares.
The oil and gas exploration company is down 35% over the past year, even as energy prices have trended higher.
That’s out of line with the company’s operations. Revenues jumped 28% last year, and earnings surged 42% last year.
The combination of a declining share price and improving operations means shares now trade at about 5 times forward earnings.
Action to take: Investors may like Riley shares here, as they’ve started to trend higher in recent weeks but still remain substantially undervalued compared to other oil stocks.
Plus, Riley pays a 4.4% dividend at current prices, offering a relatively yield in addition to capital gains.
For traders, the September $35 calls, last trading for about $1.75, could see mid-to-high double-digit returns in the coming months. Traders may want to take profits if the option moves in-the-money.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.