CNX

CNX Resources ($CNX) Director Buys $312K in Shares as Stock Trades 25% Below 52-Week High

05/13/2025 13:02

Shares of CNX Resources Corp ($CNX) have experienced significant fluctuations over the past six months, and now a company director, Palmer Clarkson, has made a substantial stock purchase on May 12. Clarkson acquired 10,000 shares at an average price of $31.20 per share, totaling $312,009. This purchase comes at a time when CNX's stock has been under pressure due to falling natural gas prices. On the day of the purchase, CNX shares closed at $30.95, approximately 25% below their 52-week high of $41.09 reached last November. This move by Director Clarkson is part of an interesting pattern of insider transactions at CNX Resources. Last year, Director Bernard Lanigan Jr. made two large purchases just one month apart. Lanigan bought 75,000 shares at $26.74 per share (approximately $2 million) on August 20, 2024, and then purchased another 75,000 shares at a similar price on September 9, 2024. Notably, most of Lanigan's shares are held through affiliated entities such as Conifer Partners II, LLC and Lanigan Family Holdings, LLC. In contrast, major shareholder MFN Partners, LP sold 1,075,000 shares at an average price of $31.09 per share, totaling $33,421,750, on January 6, 2025. This sale coincided with the beginning of a sharp decline in CNX's stock price, which fell from $36.67 at the end of the year to $30.64 shortly after the sale. The stock then traded in the $27-$31 range throughout the first quarter. These insider trading patterns should be evaluated alongside CNX's financial performance. The company reported its Q1 2025 earnings on April 24, with adjusted earnings per share (EPS) of $0.78, exceeding analyst expectations of $0.64 by 21.88% and showing a 73.3% increase from the prior year ($0.45). However, revenue decreased by 75.8% to $82.39 million year-over-year, and the company reported a quarterly net loss of $197.72 million (EPS loss of $1.34). Interestingly, following the earnings announcement, CNX's stock gradually recovered from $28.90 at the end of April to $31.53 by May 7. Clarkson's purchase was made during this upward trend. However, on the day of the purchase (May 12), natural gas futures fell 4.2% due to rising output and lower flows to LNG export plants, putting pressure on the stock prices of natural gas companies, including CNX. CNX Resources is a mid-cap energy company primarily engaged in exploring and producing natural gas in the Appalachian Basin in the United States. The company focuses on the extraction and sale of natural gas, natural gas liquids (NGLs), and oil/condensate, with recent performance benefiting from higher-than-expected prices for NGLs and oil/condensate. The global energy market is currently responding to developments in U.S.-China trade negotiations and the temporary rollback of tariffs. The easing of concerns about the Biden administration's tariff policies has improved the global economic outlook, which could positively impact energy demand in the long term. However, TD Cowen recently lowered price targets on U.S. energy companies, anticipating weakness in crude oil and a modest reduction in demand stemming from a potential trade war scenario. Interestingly, TD Cowen mentioned a strategic shift towards gas-weighted exploration and production companies, which could be favorable for natural gas-focused firms like CNX. In this context, Director Clarkson's purchase may indicate an insider's positive view of the company's long-term value. The volatility of natural gas prices remains a persistent challenge for producers like CNX. Prices are heavily influenced by seasonal factors (particularly heating and cooling demand), LNG export volumes, and production changes. Recently, U.S. natural gas futures have shown volatility amid concerns about economic repercussions from President Trump's tariff policies. Investors should keep an eye on CNX's production volumes, pricing power, and particularly why adjusted EPS increased despite the net loss reported in April. Director Clarkson's recent purchase suggests that at least one board member sees value in the company at current price levels. With the stock trading approximately 25% below its 52-week high, the insider purchase suggests the possibility that the shares may be undervalued. However, investors should also consider risk factors such as natural gas price volatility, production costs, and the broader energy market and regulatory environment. Key events to watch in the near future include the release of May consumer price index (CPI) and retail sales figures, progress in U.S.-China trade negotiations, and natural gas price movements as summer cooling demand increases.

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