Why Did Two Top Range Resources Executives Dump More Than Half Their Company Stock?

Ray Walker Jr.

Photo courtesy of Range Resources site

Photo courtesy of Range Resources site

Two of Range Resources’ top executives have sold more than half of the stock they owned in the corporation earlier this month, the Mideast Times has reported.

The executive, Chief Operating Officer Ray Walker Jr., sold 17,322 shares for more than $1.5 million. Walker still owns 15,975 shares of the company’s stock, valued at more than $1.4 million, according to the report.

On the same day, Range Resources Vice President David P. Poole sold 13,864 shares of the company’s stock for just more than $1.2 million, according to the news organization.

Following that sale, Poole now directly owns 8,796 shares in the company, valued at approximately $773,608.

The sale was disclosed in a legal filing with the SEC, which is available at this link.

Editor’s Note: Thoughts on the stock sale? Could it have anything to do with all the high-profile litigation in which the company is embroiled? Leave me a comment and let me know what you think. -amanda

 

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6 thoughts on “Why Did Two Top Range Resources Executives Dump More Than Half Their Company Stock?

  1. V Appalachia says:

    That’s an interesting theory, Amanda. Would be great if Lipsky vs Range was heard by the same upstanding judge who recently upheld the Parr verdict in Texas.

  2. Maggie Henry says:

    Answer to my wildest dreams? This boom bust goes bust before it ruins my family homestead.

  3. Like some other energy stocks, Range stock has been flying high without much steak behind the sizzle. Reminiscent of the tech stock bubble around Y2K, some stocks have price without earnings (P/E ratio). Checking Range stock’s closing price from 6-23-14 we see the P/E is 64. A quality stock would likely have a ratio under 20.
    Probably more related to these insider sales is the financial news from June 12th; Range is making a public offering of 4,560,000 shares of its common stock and The Company granted the underwriters an option for 30 days to purchase up to an additional 684,000 shares of the Company’s common stock. The offering is expected to close on or about June 17, 2014.
    As one market watcher put it: “They are retiring really high debt – something like 8% which in a fed funds rate of 0% is really high. What this really says is that they think their stock is over-valued. Generally, the cost of equity is always higher than the cost of debt. This action implies that the cost of equity is lower than 6% (the tax-adjusted cost of debt).”

  4. James says:

    Tick, tick, tock.. goes the natural gas boom stock.

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