In a recent move that signals confidence, Bernard Lanigan Jr., a director at CNX Resources Corp (NYSE:CNX), has made a significant purchase of the company’s shares. On August 20, Lanigan acquired 75,000 shares at an average price range of $26.67 to $26.90, totaling approximately $2 million.
This transaction adds to Lanigan’s already substantial holdings in CNX Resources, reflecting a strong belief in the company’s future prospects. The shares were bought through open-market transactions, and the exact number of shares acquired at each price point within the range is available upon request.
Following this acquisition, Lanigan’s indirect ownership through Conifer Partners IV, LLC, of which he is part owner of the managing member, has increased to 326,820 shares. Notably, Lanigan’s overall stake in CNX Resources is spread across multiple entities, including Lanigan Family Holdings, LLC, Conifer Partners III, LLC, Conifer Partners II, LLC, and Teton Pines Capital, LLC.
Investors often look to insider buying as a positive indicator, as it may suggest that the company’s leaders are willing to invest their own money in the expectation of future growth. Lanigan’s latest purchase is a testament to his commitment and optimism regarding CNX Resources’ trajectory.
CNX Resources, with its headquarters in Canonsburg, Pennsylvania, is a player in the crude petroleum and industry. The company, formerly known as CONSOL Energy Inc (NYSE:)., has a history of transformations and has been operating under its current name since a name change in March 2009.
As CNX Resources continues to navigate the energy sector, the actions of its directors, especially those involving substantial investments like Lanigan’s, are closely monitored by investors seeking insights into the company’s internal confidence and direction.
In other recent news, CNX Resources Corporation’s second-quarter results surpassed consensus estimates, despite increased capital expenditures and reduced volumes. Piper Sandler downgraded CNX Resources stock from a Neutral to an Underweight rating, following a reassessment of long-term natural gas price expectations. The firm revised its price target for CNX Resources to $20.00, a decrease from the previous target of $22.00.
CNX Resources has confirmed its full-year 2024 production guidance, while maintaining its capital expenditure budget between $525 million and $575 million. The company also reiterated its fiscal year 2025 plan, which anticipates an additional $50 million in spending. This investment is planned to complete 11 deferred drilled but uncompleted locations, aiming to achieve a production target of 580 billion cubic feet equivalent for the year.
In the second quarter of 2024, CNX generated $21 million of New Tech Free Cash Flow and stands by its forecast to reach $75 million for the full year. On its Q2 2024 Earnings Conference Call, the company highlighted a revenue increase driven by environmental attribute sales and water revenue. The company’s New Tech division’s volume met yearly projections at 4.5 Bcf and is expected to significantly contribute to future revenue and cash flows.
Despite the downgrade, CNX Resources has demonstrated defensive qualities, outperforming its gas peers year-to-date. This is partly due to a robust hedging strategy, with 88% of its projected gas for the second half of 2024 hedged at $2.94, and 75% for fiscal year 2025 at $2.75. However, concerns linger regarding the duration and long-term reinvestment opportunities in the Appalachian region. Piper Sandler projects the company’s leverage ratio to increase to 2.8 times by the end of 2025. These are among the recent developments in the company’s strategic outlook.
InvestingPro Insights
Following the noteworthy insider purchase by Bernard Lanigan Jr., CNX Resources Corp (NYSE:CNX) has been the subject of investor attention. An analysis of CNX’s current financial health and market performance using real-time data from InvestingPro offers additional insights into the company’s standing.
InvestingPro Data highlights a market capitalization of $4.08 billion, suggesting a sizable presence in the crude petroleum and natural gas industry. The company’s price-to-earnings (P/E) ratio stands at 8.06, which may indicate an undervaluation compared to industry peers. Furthermore, the adjusted P/E ratio for the last twelve months as of Q2 2024 is slightly lower at 7.77, reinforcing the potential for a value investment. Despite a significant revenue decline of 53.07% in the same period, the company maintains a strong gross profit margin of 59.87%, pointing to efficient cost management.
An InvestingPro Tip worth noting is the aggressive share buyback strategy by management, which often signals a belief by company leaders that the stock is undervalued. This aligns with Lanigan’s recent purchase and could be a factor in the stock’s 33.75% year-to-date price total return. However, analysts have revised their earnings expectations downwards for the upcoming period, which could temper some of the optimism surrounding the company’s financial outlook.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips, with a total of 13 listed for CNX Resources. These tips provide deeper insights into the company’s financial health, stock performance, and market expectations, which can be invaluable for making informed investment decisions. The full array of tips is available at https://www.investing.com/pro/CNX.
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