CNX Resources Corp (NYSE:CNX) director Bernard Lanigan Jr. has made a significant investment in the company's stock, purchasing shares valued at more than $2 million. The transaction, which took place on September 9, saw the director acquire 75,000 common shares at an average weighted price between $26.63 and $26.97.
Investors tracking insider transactions may find this purchase noteworthy as it reflects a substantial addition to Lanigan's holdings in the company. Following the acquisition, the director now indirectly owns 401,820 shares through Conifer Partners IV, LLC, according to the filing. It is important to note that Lanigan is part owner of the managing member of Conifer Partners IV, LLC.
This transaction is part of a series of recent filings that provide insights into insider activities within CNX Resources. While the recent purchase by Lanigan is significant, the director's overall exposure to the company's stock also includes indirect ownership through several entities. These include shares held by Conifer Partners III, LLC; Conifer Partners II, LLC; Lanigan Family Holdings, LLC; and Teton Pines Capital, LLC, which collectively account for an even more considerable portion of his investment in CNX Resources.
The recent purchase by Lanigan could be interpreted by investors as a sign of confidence in the future prospects of CNX Resources. As with any insider transaction, the market often looks to these activities for hints about the company's health and insider perceptions. However, it's important for investors to consider these transactions within the broader context of their investment strategy and market conditions.
CNX Resources, headquartered in Canonsburg, Pennsylvania, operates in the crude petroleum and natural gas industry, and its stock is publicly traded on the New York Stock Exchange. Investors and stakeholders in the energy sector may continue to monitor insider transactions as part of their assessment of the company's performance and outlook.
In other recent news, CNX Resources has been the subject of several significant developments. Piper Sandler has downgraded CNX Resources stock from a Neutral to an Underweight rating, adjusting the price target to $20.00 from the previous $22.00. This decision follows a reassessment of long-term natural gas price expectations, now set at $3.25, down from $4.00.
CNX Resources recently reported second-quarter results that exceeded consensus estimates, despite increased capital expenditures and reduced volumes. The company confirmed its full-year 2024 production guidance and maintained its capital expenditure budget between $525 million and $575 million. Additionally, the company generated $21 million of New Tech Free Cash Flow in the second quarter of 2024, and stands by its forecast to reach $75 million for the full year.
In its Q2 2024 Earnings Conference Call, CNX Resources 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, contributing significantly to future revenue and cash flows. Other notable developments include the initiation of third-party CNG sales and an anticipation of guidance for the 45V hydrogen tax credit in the coming months. However, specific details on the performance and costs of the deep Utica wells were deferred to future quarters.
InvestingPro Insights
In light of the recent insider purchase by CNX Resources Corp (NYSE:CNX) director Bernard Lanigan Jr., investors may find additional context from InvestingPro data and tips useful. The company's market capitalization stands at approximately $4.1 billion, with a P/E ratio of 8.09, which adjusts to 7.77 when considering the last twelve months as of Q2 2024. Despite a notable revenue decline of 53.07% over the same period, CNX Resources has maintained a high gross profit margin of nearly 59.87%, indicating a strong ability to control costs relative to sales.
InvestingPro Tips suggest that management's aggressive share buyback strategy might be a factor in the director's decision to increase his holdings. It's worth noting that while some analysts have revised their earnings expectations downwards for the upcoming period, the company is still expected to be profitable this year, as it has been over the last twelve months. This profitability, coupled with the stock's low price volatility, may offer a degree of stability for investors. However, it is also important to recognize that the company is trading at a high revenue valuation multiple and that short-term obligations exceed liquid assets, which could be points of consideration for potential investors.
For those interested in a deeper analysis, there are 12 additional InvestingPro Tips available on the platform, which provide further insights into CNX Resources Corp's financial health and market performance. These tips could help investors better understand the nuances behind insider transactions like Lanigan's recent purchase and the company's overall financial trajectory.
For more detailed information and additional tips on CNX Resources Corp, investors can visit InvestingPro.
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