Permian Resources Corp (PR) Stock: Understanding Its Underlying Value

Goldman has recently initiated Permian Resources Corp (PR) stock to Buy rating, as announced on September 30, 2024, according to Finviz. Earlier, on July 18, 2024, Wolfe Research had initiated the stock to Peer Perform. BMO Capital Markets also raised Outperform rating with a price target of $21. Additionally, BofA Securities resumed Buy rating on June 14, 2024, with a target price of $20. Raymond James analysts, in their report published on April 9, 2024, also initiated Strong Buy rating and set a price target of $24 for Permian Resources Corp’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.


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Permian Resources Corp (PR) Stock Trading Recap

On Wednesday, Permian Resources Corp (PR) stock saw a modest uptick, ending the day at $13.73 which represents a slight increase of $0.19 or 1.40% from the prior close of $13.54. The stock opened at $13.63 and touched a low of $13.55 during the day, reaching a high of $13.82. The volume of shares traded was 7.85 million falling short of the average volume of 10.38 million.

PR Stock Performance and Moving Averages

In recent trading, Permian Resources Corp (PR) stock price has shown some volatility, fluctuating -0.87% over the last five trades and -0.58% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -14.91%, and it has plunged by -6.35% in the previous three months. Currently, PR is trading at -2.64%, -1.36%, and -8.99% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.

As of the latest trading close, PR, a Energy sector stock, is trading -23.47% below its 52-week high but remains 14.08% above its 52-week low. The Average True Range (ATR) (14 days) of 0.39 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.

Permian Resources Corp’s Profitability and Valuation Ratios

Permian Resources Corp’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 39.61% and a profit margin of 15.68%, with a gross margin of -14.91%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.

In terms of valuation, Permian Resources Corp’s market capitalization stands at $11.02 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 11.02, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 8.86. Additionally, the Price-to-Sales Ratio is 2.52, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 1.11, comparing the market value to the company’s book value.

Understanding Insider Trading

Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 23.76% of Permian Resources Corp (PR)’s shares, while financial institutions hold 75.90%.

Notable insider trades include Tepper Jeffrey, Director at Permian Resources Corp (PR), who sold 65000 shares on May 15 ’24, at $16.42 each, totaling $1.07 million. On May 15 ’24, EnCap Partners GP, LLC, 10% Owner, sold 10000000 shares for $16.42 each, amounting to $164.20 million. Additionally, on May 15 ’24, Quinn William J sold 22500000 shares at $16.47 each, generating $370.58 million.

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