This week Key Energy Services (
) reported two
significant insider transactions
. Chairman, CEO and President Richard Alario and Director Ralph
Michael, III both made large buys into the company.
CEO Richard Alario made the largest buy, adding a total of 50,000
shares to his stake. These shares traded at an average price of
$5.96 for a transaction amount of $298,000. Since this buy the
share prices are up 1.85%.
Director Ralph Michael added 10,000 shares of KEG stock at an
average price of $5.95. This cost him a total of $59,500. Since
his most recent buy share prices are up 2.02%.
Key Energy, formerly known as National Environmental Group,
provides a range of products and services to the natural gas and
oil industry. Key Energy provides well services to oil companies,
foreign national oil companies and independent oil and natural
gas production companies. Some of these services include
rig-based well maintenance, workover, well completion and
re-completion services, fluid management services, pressure
pumping services, fishing and rental services and ancillary
The company has been struggling recently, as most recently noted
first quarter results
. Key Energy's first quarter revenue for 2012 was at $428.4
million as compared to $466.5 million in the last quarter of
2012. The company also had a one-time retirement pay of $2.2
million that went to the former Senior VP and CFO Trey Whichard,
The net loss for Key Energy in the first quarter of 2013 was
KEG data by GuruFocus.com
What's good about Key Energy?
� The P/B ratio is close to a 3-year low of 0.71.
� The P/S ratio is nearing a 3-year low of 0.44.
� The price of Key Energy is close to a 3-year low of
Potential problems with Key Energy:
� The company has been in an operating loss for the
past three years.
� Also during the past three years, the company has
issued $314.322 million of debt.
� The gross margin has been in a long-term decline.
The average rate of decline is -3.2% per year.
Despite all of the negatives, Chuck Royce upped his stake in KEG
by 8.81% as of March 31, 2013. Royce now holds on to shares of
Key Energy. Five other gurus also hold stake in KEG. To see those
gurus and the shares they hold, click here.
With its shares up 8.2%, Key Energy trades at $6.07.About
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