Making a noteworthy insider sell on September 29, Solas Capital Management LLC, 10% Owner at Epsilon Energy (NASDAQ:EPSN), is reported in the latest SEC filing.
What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Monday, LLC sold 74,427 shares of Epsilon Energy. The total transaction value is $382,508.
As of Tuesday morning, Epsilon Energy shares are down by 1.79%, currently priced at $4.93.
About Epsilon Energy
Epsilon Energy Ltd is engaged in the acquisition, development, gathering, and production of natural gas and oil reserves. The operating segments of the company include Upstream segment activities including acquisition, development, and production of natural gas reserves on properties within the United States. The Gas Gathering segment partners with two other companies to operate a natural gas gathering system, and the corporate segment activities include corporate listing and governance functions of the corporation. The company generates revenue from the sale of crude oil and natural gas.
Understanding the Numbers: Epsilon Energy’s Finances
Revenue Growth: Epsilon Energy’s remarkable performance in 3 months is evident. As of 30 June, 2025, the company achieved an impressive revenue growth rate of 59.07%. This signifies a substantial increase in the company’s top-line earnings. When compared to others in the Energy sector, the company excelled with a growth rate higher than the average among peers.
Navigating Financial Profits:
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Gross Margin: The company excels with a remarkable gross margin of 45.99%, indicating superior cost efficiency and profitability compared to its industry peers.
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Earnings per Share (EPS): Epsilon Energy’s EPS is below the industry average. The company faced challenges with a current EPS of 0.07. This suggests a potential decline in earnings.
Debt Management: Epsilon Energy’s debt-to-equity ratio is below the industry average. With a ratio of 0.0, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
Navigating Market Valuation:
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Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 21.83 is lower than the industry average, indicating potential undervaluation for the stock.
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Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 2.51 as compared to the industry average, the stock might be considered overvalued based on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Boasting an EV/EBITDA ratio of 4.54, Epsilon Energy demonstrates a robust market valuation, outperforming industry benchmarks.
Market Capitalization Analysis: Below industry benchmarks, the company’s market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.
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Exploring the Significance of Insider Trading
Insider transactions, although significant, should be considered within the larger context of market analysis and trends.
Exploring the legal landscape, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.
Highlighted by a company insider’s new purchase, there’s a positive anticipation for the stock to rise.
But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Transaction Codes Worth Your Attention
Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Epsilon Energy’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
