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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

NamePositionShares TransactedTransaction PriceDate
ADAMS CRAIG NOfficer1,000255/29/2014
RYAN MICHAEL CDirector1,000255/29/2014
LANEY DAVID MDirector10,000255/29/2014
MITCHELL GREGORY EDirector2,000255/29/2014
SEPULVEDA JR CARLOS MDirector5,000255/29/2014
FORAN JOSEPH WMOfficer5,000255/29/2014
ONHIMUS STEVEN WDirector500255/29/2014
SAGE RES LTDOther5,000255/29/2014

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

Insider Transactions in the Last Twelve Months

DateNet # of TransactionsShares BoughtShares SoldNet Shares TransactedPriceMonthly Volume
6/1/2014 $26.086,856,000
5/1/2014829,500 29,500$24.8830,413,000
4/1/2014-3 -2,829-2,829$28.7222,491,000
3/1/2014768,000 68,000$24.4919,697,000
2/1/2014619,787 19,787$24.2615,033,000
1/1/2014 $19.4413,932,000
12/1/201315,000 5,000$18.6419,224,000
11/1/2013 5,000-5,000 $21.7922,487,000
10/1/2013 24,800-24,800 $18.4121,829,000
9/1/2013618,100 18,100$16.3327,191,000
8/1/2013 $16.949,347,000
7/1/2013 $13.106,352,000

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

Current Insider Holdings

Holder NameAmount Held% Shares OutstandingLatest ChgFiling Date
FORAN JOSEPH WM2,903,7783.96%5,0005/29/2014
KING SCOTT ELLISON968,3131.32%04/16/2012
LANEY DAVID M480,1770.66%10,0005/29/2014
LANCASTER DAVID E302,0360.41%-1,4534/16/2014
SEPULVEDA JR CARLOS M295,6490.40%5,0005/29/2014
RYAN MICHAEL C269,7700.37%1,0005/29/2014
ROBINSON BRADLEY M235,9290.32%-7344/16/2014
MITCHELL GREGORY E210,2420.29%2,0005/29/2014
HAIRFORD MATTHEW V189,8560.26%5,7693/7/2014
HOLDITCH STEPHEN A135,9530.19%05/2/2014
ONHIMUS STEVEN W106,9770.15%5005/29/2014
NICKLIN DAVID F77,2610.11%6,8113/7/2014
LONDON RYAN74,9900.10%-6424/16/2014
SHANNON MARGARET B58,3920.08%05/2/2014
WAYNE KATHRYN L45,7340.06%03/12/2013
ADAMS CRAIG N40,4710.06%1,0005/29/2014
FENDLEY SANDRA8,3100.01%3,3103/17/2014

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)(OTCQB:XBOR)(NYSE:GDP)
Company Name:MATADOR RESOURCESM ENERGY COEXCO RESOURCESWHITING PETROLEUMCOMSTOCK RESOURCESFOREST OIL CORPABRAXAS PETROLEUMPIONEER NATURALCROSS BORDER RESOURCESGOODRICH PETROLEUM
Latest Fiscal Year:12/201312/201312/201312/201312/201312/201312/201312/201312/201212/2013
Latest Available Period Date:3/31/20143/31/20143/31/20143/31/20143/31/20143/31/20143/31/20143/31/20149/30/20133/31/2014
52-Week High29.1494.008.8975.9028.736.675.80227.421.8530.52
52-Week High Date4/29/201412/6/20138/5/20134/24/20144/24/20149/18/20135/8/201410/21/20135/6/20146/2/2014
52-Week Low10.1058.894.6044.2114.221.682.01138.910.2511.16
52-Week Low Date6/10/20136/24/20131/17/20146/28/20139/4/20133/14/20147/2/20136/24/201311/7/20136/21/2013
Daily Volume908,842697,0482,621,867735,897953,4103,850,3731,980,297968,8812,5281,379,382
Current Price:6/10/1426.0876.285.2174.3726.912.415.35220.471.1727.79
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 % Change160.0%29.5%13.3%68.2%89.3%43.5%166.2%58.7%368.0%149.0%
Total Common Shares (NYSE:M)65.6567.1218.2118.747.7119.492.9142.616.344.3
Market Capitalization1,911.85,115.21,421.18,847.01,287.3286.9501.831,537.620.31,230.6
Total Debt270.01,600.01,499.92,653.7949.1800.270.62,706.012.2497.5
Preferred Stock0.0--------2.3
Minority Interest0.0--8.1---9.0--
- Cash and Equivalents14.3236.494.5406.41.848.30.3257.01.00.8
Current Enterprise Value2,167.56,478.82,826.511,102.32,234.71,038.7572.033,986.631.51,729.5
ValuationAverageMedian
Total RevenueLFY268.12,265.4634.32,664.6420.3441.394.33,489.514.8199.51,049.2430.8
LTM285.52,413.4694.62,780.9470.1393.199.03,760.414.4201.31,111.3431.6
FY+1381.92,553.9713.23,166.8601.3288.7135.14,018.2-246.11,345.0601.3
FY+2548.72,795.1769.03,507.1672.8355.2180.24,778.0-373.01,553.2672.8
EV/Total RevenueLFY5.29x3.04x4.73x3.49x3.97x2.64x3.62x8.18x1.62x5.98x4.3x3.8x
LTM6.54x2.55x4.22x3.78x4.34x2.49x4.46x7.77x1.14x5.96x4.3x4.3x
FY+15.68x2.54x3.96x3.51x3.72x3.60x4.23x8.46x-7.03x4.7x4.0x
FY+23.95x2.32x3.68x3.17x3.32x2.92x3.17x7.11x-4.64x3.8x3.3x
EBITDALFY166.11,357.0356.01,456.5267.5283.147.61,865.48.895.2590.3275.3
LTM180.41,465.9409.31,541.4315.4253.152.32,097.28.397.6642.1284.2
FY+1273.41,646.6439.82,212.0468.3182.887.02,528.3-161.8888.9439.8
FY+2399.31,769.3481.82,431.0527.0227.4118.33,128.2-260.61,038.1481.8
EV/EBITDALFY8.54x5.08x8.42x6.39x6.24x4.12x7.18x15.29x2.73x12.55x7.7x6.8x
LTM12.01x4.42x6.91x7.20x7.09x4.10x10.94x16.21x3.78x17.72x9.0x7.1x
FY+17.93x3.93x6.43x5.02x4.77x5.68x6.57x13.44x-10.69x7.2x6.4x
FY+25.43x3.66x5.87x4.57x4.24x4.57x4.84x10.86x-6.64x5.6x4.8x
EPSLFY1.084.21-0.304.31-1.990.160.244.36-0.05-2.890.910.20
LTM1.285.040.014.45-1.370.090.304.39-0.04-2.621.150.20
FY+11.236.530.154.680.540.020.405.52--1.631.940.54
FY+21.616.210.194.930.950.120.556.77--0.732.290.95
P/ELFY17.26x19.76x-14.35x-22.72x13.75x42.22x--21.7x18.5x
LTM20.39x15.14x547.42x16.70x-26.17x17.67x50.22x--99.1x20.4x
FY+121.26x11.69x34.05x15.91x50.02x126.84x13.51x39.94x--39.2x27.7x
FY+216.16x12.29x26.99x15.10x28.21x19.59x9.67x32.58x--20.1x17.9x
Revenue Growth1 Year57.8%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 Growth1 Year220.4%50.0%41.6%9.3%33.5%-43.5%80.0%26.3%793.7%-38.2%117.3%37.6%
5 Year62.5%12.2%-18.1%14.4%-0.7%-25.7%-6.2%7.5%--6.4%4.4%(0.7%)
EBITDA MarginLTM63.20%60.7%58.9%55.4%67.1%64.4%52.8%55.8%57.7%48.5%58.4%58.3%
FY+171.59%64.5%61.7%69.9%77.9%63.3%64.4%62.9%-65.7%66.9%64.5%
FY+272.76%63.3%62.6%69.3%78.3%64.0%65.6%65.5%-69.9%67.9%65.6%

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.

Source: 8 Insiders Buying Matador Resources Stock