USEG

US Energy Corp($USEG) CEO Continues Relentless Insider Buying Through 68% Stock Plunge, Recently Quintupling Purchase Volume

05/21/2025 10:07

As US Energy Corp ($USEG) shares have plummeted from their January peak of over $3 to around $1.20 currently, CEO Ryan Lewis Smith's persistent insider buying pattern has caught market attention. The small-cap energy company's stock has exhibited significant volatility over the past year. After hovering around the $1 mark in late 2024, shares surged dramatically in mid-January 2025, reaching a peak of $3.79 on January 21st. Since then, the stock has experienced a gradual decline, currently trading around $1.20 in mid-May, representing a nearly 68% drop from its peak. What's remarkable is CEO Smith's consistent buying pattern throughout these fluctuations. According to SEC filings, Smith has been purchasing company shares almost daily since September 2024. From September 23, 2024, through February 27, 2025, he consistently acquired around 500 shares per day. Most recently, on May 20, 2025, he increased his purchase volume fivefold, buying 2,500 shares at $1.19 each. This pattern is particularly noteworthy as it continued through periods of stock decline. Smith did not halt his purchases when the share price dropped from its mid-January peak through the $2 range and into current $1 levels. Since January 2025, Smith has added over 10,000 shares to his holdings. However, contrasting with the CEO's apparent confidence, the company's financial situation remains challenging. In its Q1 2025 results announced on May 12th, US Energy reported a loss of 10 cents per share, with revenue plummeting 59.3% year-over-year to $2.19 million. These figures significantly missed analyst expectations of a 5-cent loss per share and revenue of $3.5 million. Despite these difficulties, the company has made several strategic moves. In July 2024, it entered into an agreement to sell its South Texas properties for $6.5 million. In January 2025, it raised approximately $10.5 million net through a public offering of about 4.2 million shares at $2.65 per share. The company announced these funds would be directed toward its industrial gas development project. Energy industry experts suggest Smith's steady buying could signal confidence in the company's long-term value, but it might also represent a strategic effort to support the stock price. The recent substantial increase in purchase volume could be interpreted as a response to continuing poor performance and stock decline. Meanwhile, the U.S. energy industry is showing signs of transformation under the Trump administration's fossil fuel production policies and environmental regulation rollbacks. On January 21, President Trump declared a national energy emergency to boost fossil fuel production and streamline permitting processes, announcing plans to withdraw from the Paris climate agreement and repeal Biden administration environmental protections. The impact of these policy changes on small energy firms like US Energy Corp remains uncertain. However, the CEO's continued stock purchases at least suggest some internal optimism about the company's future. Wall Street analysts currently maintain a 'buy' rating on US Energy, with a median 12-month price target of $3.00, suggesting significant upside potential from current levels. However, continued poor performance and volatile energy market conditions remain potential risks to the company's growth trajectory. Moving forward, investors should monitor additional purchase patterns by the CEO, alongside Q2 earnings announcements, progress on the industrial gas development project, and further U.S. energy policy changes. These factors will serve as important catalysts in determining US Energy's stock direction.

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