(MENAFN- ValueWalk)
On Thursday afternoon, oil and natural gas company PHX Minerals Inc (NYSE:PHX) filed a form 4 with the SEC regarding trades by its Chief Executive Chad Stephens. The purchase was first spotted on Fintel's latest insider trading tracker screen earlier on Friday.
Insider Buying At PHX Minerals
Stephens disclosed a 30,000 share purchase at $3.073, worth about $92,000. The purchase brings Stephens total share count to 806,618, or about 2.3% of the total float.
In addition to Stephens purchase, Chief Financial Officer Ralph D'Amico topped up his position by 3,500 shares at $3.024 to bring his total to 366,075.
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PHX Minerals experienced a cracking start to the year with steady share price growth that outperformed the broader. The stock had more than doubled by early June after PHX announced that it increased its borrowing base, which provided an additional $26 million in undrawn credit, and bolstered its available liquidity.
As the stock retreated to the low $3 range, senior management took advantage of the weakness and purchased shares at prices below the $3.20 territory that the stock traded before the credit facility news.
Other notable June insider trades included fund manager and activist investors Edenbook Capital who bought 27,500 shares. at an average The average $3.25 per share.
Edenbrook is the largest institutional shareholder on the register with approximately 14.6% ownership of the float.
SRP Capital purchased 81,265 shares in June at an average $4.23 a share. SRP is the second largest shareholder on the register with about 9.6% ownership in the company. PHX has a total of 4 net insiders that have purchased stock during the last 90 days. These insiders and their respective trades have contributed to the company having above average levels of insider accumulation and officer accumulation based on Fintel screening.
The Fintel screens give PHX an insider accumulation score of 67.97, ranking the company 938 out of 14,506 peers. The officer accumulation score of 65.81 and places PHX at 889 out of 11,376 companies.
The graph provided to the right illustrates the short term profits from trades in the last 90 days from these insiders.
Institutional ownership is bullish in the stock with a score of 83.84. The score ranks PHX in the top 6% of 31,172 included companies.
PHX currently has 90 institutions on the register that currently own ~33% of the float. Only 3 of these institutions are long/short with 0 reported short only positions. Some of these institutions include RBF Capital, Dimensional Fund Advisors, Renaissance Technologies and Precept Management.
Analyst Nick Pope from Seaport Research Partners is bullish on the company, giving a 'buy' recommendation and $4 price target. In a recent publication, Pope increased full year EBITDA forecasts in light of recent acquisitions that will increase royalty production. Pope also highlighted PHX's low valuation trading multiple and discount to peers in the sector.
Earlier in June, Stifel hosted Chad Stephens and Ralph D'Amico to discuss the evolution of PHX and how they view capital allocation for the future. In the report they highlight how PHX targets packages with lower current free cash flows and higher work in progress or undrilled potential in an effort to maximize value in the longer term.
PHX noted that they plan to use free cash flow, the recent increased credit facility, sales proceeds and equity offerings to fund future acquisitions. Stifel remains a buyer, with a $6.90 target price.
Article by Ben Ward, Fintel
Updated on Jul 6, 2022, 3:09 pm
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