8 Insiders Buying Matador Resources Stock

Jun.10.14 | About: Matador Resources (MTDR)

Summary

Recently, 8 insiders transacted a total of 29500 shares at an average price of $25.

Overall, 170187 shares were bought and 32629 shares were sold in the last twelve months.

Together, insiders hold 8.75% of the shares outstanding.

Recently, Matador Resources (MTDR) has seen strong insider buying around the $25 range.

Description

According to management, "Matador is an independent energy company engaged in the exploration, development, production and acquisition of oil and natural gas resources in the United States, with an emphasis on oil and natural gas shale and other unconventional plays. Its current operations are focused primarily on the oil and liquids-rich portion of the Eagle Ford shale play in South Texas and the Wolf camp and Bone Spring plays in the Permian Basin in Southeast New Mexico and West Texas. Matador also operates in the Haynesville shale and Cotton Valley plays in Northwest Louisiana and East Texas. In addition, Matador has a large exploratory leasehold position in Southwest Wyoming and adjacent areas of Utah and Idaho where it is testing the Meade Peak shale."

History

MTDR Chart

MTDR data by YCharts

Recent Transactions

Name Position Shares Transacted Transaction Price Date
ADAMS CRAIG N Officer 1,000 25 5/29/2014
RYAN MICHAEL C Director 1,000 25 5/29/2014
LANEY DAVID M Director 10,000 25 5/29/2014
MITCHELL GREGORY E Director 2,000 25 5/29/2014
SEPULVEDA JR CARLOS M Director 5,000 25 5/29/2014
FORAN JOSEPH WM Officer 5,000 25 5/29/2014
ONHIMUS STEVEN W Director 500 25 5/29/2014
SAGE RES LTD Other 5,000 25 5/29/2014
Click to enlarge

Recently, 8 insiders transacted a total of 29500 shares at an average price of $25.

Insider Transactions in the Last Twelve Months

Date Net # of Transactions Shares Bought Shares Sold Net Shares Transacted Price Monthly Volume
6/1/2014 $26.08 6,856,000
5/1/2014 8 29,500 29,500 $24.88 30,413,000
4/1/2014 -3 -2,829 -2,829 $28.72 22,491,000
3/1/2014 7 68,000 68,000 $24.49 19,697,000
2/1/2014 6 19,787 19,787 $24.26 15,033,000
1/1/2014 $19.44 13,932,000
12/1/2013 1 5,000 5,000 $18.64 19,224,000
11/1/2013 5,000 -5,000 $21.79 22,487,000
10/1/2013 24,800 -24,800 $18.41 21,829,000
9/1/2013 6 18,100 18,100 $16.33 27,191,000
8/1/2013 $16.94 9,347,000
7/1/2013 $13.10 6,352,000
Click to enlarge

Overall, 170187 shares were bought and 32629 shares were sold in the last twelve months.

Current Insider Holdings

Holder Name Amount Held % Shares Outstanding Latest Chg Filing Date
FORAN JOSEPH WM 2,903,778 3.96% 5,000 5/29/2014
KING SCOTT ELLISON 968,313 1.32% 0 4/16/2012
LANEY DAVID M 480,177 0.66% 10,000 5/29/2014
LANCASTER DAVID E 302,036 0.41% -1,453 4/16/2014
SEPULVEDA JR CARLOS M 295,649 0.40% 5,000 5/29/2014
RYAN MICHAEL C 269,770 0.37% 1,000 5/29/2014
ROBINSON BRADLEY M 235,929 0.32% -734 4/16/2014
MITCHELL GREGORY E 210,242 0.29% 2,000 5/29/2014
HAIRFORD MATTHEW V 189,856 0.26% 5,769 3/7/2014
HOLDITCH STEPHEN A 135,953 0.19% 0 5/2/2014
ONHIMUS STEVEN W 106,977 0.15% 500 5/29/2014
NICKLIN DAVID F 77,261 0.11% 6,811 3/7/2014
LONDON RYAN 74,990 0.10% -642 4/16/2014
SHANNON MARGARET B 58,392 0.08% 0 5/2/2014
WAYNE KATHRYN L 45,734 0.06% 0 3/12/2013
ADAMS CRAIG N 40,471 0.06% 1,000 5/29/2014
FENDLEY SANDRA 8,310 0.01% 3,310 3/17/2014
Click to enlarge

Together, insiders hold 8.75% of the shares outstanding.

Source: Form 4

From the Comparables Table below, you can see that Matador trades below the average in P/E ratio despite much stronger Revenue Growth and EBITDA.

Comparables Table

Ticker (NYSE: SM) (NYSE: XCO) (NYSE: WLL) (NYSE: CRK) (NYSE: FST) (NASDAQ: AXAS) (NYSE:PXD) (OTCPK:XBOR) (GDP )
Company Name: MATADOR RESOURCE SM ENERGY CO EXCO RESOURCES WHITING PETROLEUM COMSTOCK RESOURCES FOREST OIL CORP ABRAXAS PETROLEUM PIONEER NATURAL CROSS BORDER RESOURCES GOODRICH PETROLEUM
Latest Fiscal Year: 12/2013 12/2013 12/2013 12/2013 12/2013 12/2013 12/2013 12/2013 12/2012 12/2013
Latest Available Period Date: 3/31/2014 3/31/2014 3/31/2014 3/31/2014 3/31/2014 3/31/2014 3/31/2014 3/31/2014 9/30/2013 3/31/2014
52-Week High 29.14 94.00 8.89 75.90 28.73 6.67 5.80 227.42 1.85 30.52
52-Week High Date 4/29/2014 12/6/2013 8/5/2013 4/24/2014 4/24/2014 9/18/2013 5/8/2014 10/21/2013 5/6/2014 6/2/2014
52-Week Low 10.10 58.89 4.60 44.21 14.22 1.68 2.01 138.91 0.25 11.16
52-Week Low Date 6/10/2013 6/24/2013 1/17/2014 6/28/2013 9/4/2013 3/14/2014 7/2/2013 6/24/2013 11/7/2013 6/21/2013
Daily Volume 908,842 697,048 2,621,867 735,897 953,410 3,850,373 1,980,297 968,881 2,528 1,379,382
Current Price: 6/10/14 26.08 76.28 5.21 74.37 26.91 2.41 5.35 220.47 1.17 27.79
52-Week High % Change -10.5% -18.9% -41.4% -2.0% -6.3% -63.9% -7.8% -3.1% -36.8% -8.9%
52-Week Low % Change 160.0% 29.5% 13.3% 68.2% 89.3% 43.5% 166.2% 58.7% 368.0% 149.0%
Total Common Shares (NYSE:M) 65.65 67.1 218.2 118.7 47.7 119.4 92.9 142.6 16.3 44.3
Market Capitalization 1,911.8 5,115.2 1,421.1 8,847.0 1,287.3 286.9 501.8 31,537.6 20.3 1,230.6
Total Debt 270.0 1,600.0 1,499.9 2,653.7 949.1 800.2 70.6 2,706.0 12.2 497.5
Preferred Stock 0.0 - - - - - - - - 2.3
Minority Interest 0.0 - - 8.1 - - - 9.0 - -
- Cash and Equivalents 14.3 236.4 94.5 406.4 1.8 48.3 0.3 257.0 1.0 0.8
Current Enterprise Value 2,167.5 6,478.8 2,826.5 11,102.3 2,234.7 1,038.7 572.0 33,986.6 31.5 1,729.5
Valuation Average Median
Total Revenue LFY 268.1 2,265.4 634.3 2,664.6 420.3 441.3 94.3 3,489.5 14.8 199.5 1,049.2 430.8
LTM 285.5 2,413.4 694.6 2,780.9 470.1 393.1 99.0 3,760.4 14.4 201.3 1,111.3 431.6
FY+1 381.9 2,553.9 713.2 3,166.8 601.3 288.7 135.1 4,018.2 - 246.1 1,345.0 601.3
FY+2 548.7 2,795.1 769.0 3,507.1 672.8 355.2 180.2 4,778.0 - 373.0 1,553.2 672.8
EV/Total Revenue LFY 5.29x 3.04x 4.73x 3.49x 3.97x 2.64x 3.62x 8.18x 1.62x 5.98x 4.3x 3.8x
LTM 6.54x 2.55x 4.22x 3.78x 4.34x 2.49x 4.46x 7.77x 1.14x 5.96x 4.3x 4.3x
FY+1 5.68x 2.54x 3.96x 3.51x 3.72x 3.60x 4.23x 8.46x - 7.03x 4.7x 4.0x
FY+2 3.95x 2.32x 3.68x 3.17x 3.32x 2.92x 3.17x 7.11x - 4.64x 3.8x 3.3x
EBITDA LFY 166.1 1,357.0 356.0 1,456.5 267.5 283.1 47.6 1,865.4 8.8 95.2 590.3 275.3
LTM 180.4 1,465.9 409.3 1,541.4 315.4 253.1 52.3 2,097.2 8.3 97.6 642.1 284.2
FY+1 273.4 1,646.6 439.8 2,212.0 468.3 182.8 87.0 2,528.3 - 161.8 888.9 439.8
FY+2 399.3 1,769.3 481.8 2,431.0 527.0 227.4 118.3 3,128.2 - 260.6 1,038.1 481.8
EV/EBITDA LFY 8.54x 5.08x 8.42x 6.39x 6.24x 4.12x 7.18x 15.29x 2.73x 12.55x 7.7x 6.8x
LTM 12.01x 4.42x 6.91x 7.20x 7.09x 4.10x 10.94x 16.21x 3.78x 17.72x 9.0x 7.1x
FY+1 7.93x 3.93x 6.43x 5.02x 4.77x 5.68x 6.57x 13.44x - 10.69x 7.2x 6.4x
FY+2 5.43x 3.66x 5.87x 4.57x 4.24x 4.57x 4.84x 10.86x - 6.64x 5.6x 4.8x
EPS LFY 1.08 4.21 -0.30 4.31 -1.99 0.16 0.24 4.36 -0.05 -2.89 0.91 0.20
LTM 1.28 5.04 0.01 4.45 -1.37 0.09 0.30 4.39 -0.04 -2.62 1.15 0.20
FY+1 1.23 6.53 0.15 4.68 0.54 0.02 0.40 5.52 - -1.63 1.94 0.54
FY+2 1.61 6.21 0.19 4.93 0.95 0.12 0.55 6.77 - -0.73 2.29 0.95
P/E LFY 17.26x 19.76x - 14.35x - 22.72x 13.75x 42.22x - - 21.7x 18.5x
LTM 20.39x 15.14x 547.42x 16.70x - 26.17x 17.67x 50.22x - - 99.1x 20.4x
FY+1 21.26x 11.69x 34.05x 15.91x 50.02x 126.84x 13.51x 39.94x - - 39.2x 27.7x
FY+2 16.16x 12.29x 26.99x 15.10x 28.21x 19.59x 9.67x 32.58x - - 20.1x 17.9x
Revenue Growth 1 Year 57.8% 47.9% 16.0% 24.5% 9.2% -38.5% 37.6% 29.4% 120.2% -21.5% 28.3% 26.9%
5 Year - 26.0% 4.6% 39.8% 19.4% -23.3% 20.9% 24.8% - 1.6% 14.2% 20.1%
EBITDA Growth 1 Year 220.4% 50.0% 41.6% 9.3% 33.5% -43.5% 80.0% 26.3% 793.7% -38.2% 117.3% 37.6%
5 Year 62.5% 12.2% -18.1% 14.4% -0.7% -25.7% -6.2% 7.5% - -6.4% 4.4% (0.7%)
EBITDA Margin LTM 63.20% 60.7% 58.9% 55.4% 67.1% 64.4% 52.8% 55.8% 57.7% 48.5% 58.4% 58.3%
FY+1 71.59% 64.5% 61.7% 69.9% 77.9% 63.3% 64.4% 62.9% - 65.7% 66.9% 64.5%
FY+2 72.76% 63.3% 62.6% 69.3% 78.3% 64.0% 65.6% 65.5% - 69.9% 67.9% 65.6%
Click to enlarge

Source: Bloomberg

Conclusion

Due to favorable comparison versus peers in terms of revenue growth, EBITDA growth, EBITDA margin, and P/E ratio, I believe that Matador is a viable long around $25. In addition, management appears confident with the company achieving record oil production of 7,344 Bbl/d, and they are buying shares.

Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.