Ranger Energy Services (RNGR) has disclosed a new risk, in the Debt & Financing category.
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Ranger Energy Services has implemented an aggressive share repurchase program, as evidenced by the recent authorization to buy back up to $85 million of its Class A Common Stock. This program, which allows for repurchases on the open market or through private transactions, could pose a financial risk to the company if market conditions lead to an overvaluation of repurchased shares or if the funds allocated for repurchases detract from other strategic investments. In the quarter ending September 30, 2024, the company repurchased 164,271 shares at an average price of $10.50, with significant fluctuations in the number of shares and prices paid per share across the months. The flexibility of the program to accelerate, suspend, or discontinue repurchases also introduces uncertainty regarding the company’s future capital allocation strategies.
Overall, Wall Street has a Hold consensus rating on RNGR stock based on 1 Hold.
To learn more about Ranger Energy Services’ risk factors, click here.