AMPY

Amplify Energy ($AMPY) Insiders Load Up with $2M Buying Spree at Stock Bottom

06/26/2025 03:16

Amplify Energy Corp ($AMPY) insiders are conducting significant buying activity at what appears to be the stock's bottom, drawing market attention to this independent oil and gas exploration and production company. Based in Houston, this small-cap energy firm operates petroleum and natural gas assets across Oklahoma, the Rocky Mountain region, offshore Southern California, East Texas/North Louisiana, and the Eagle Ford Shale. The most notable activity comes from Director Clint Coghill, who purchased a total of 454,000 shares worth approximately $1.54 million between June 4-20. These purchases averaged around $3.40 per share, closely matching the current stock price of $3.36. Particularly striking was his June 20 purchase of 150,000 shares at $3.67 per share, demonstrating continued conviction. Coghill serves as president of the general partner of Stoney Lonesome HF LP, giving him substantial investment decision-making authority. Other executives joined the buying spree. Director Christopher Hamm purchased 77,176 shares for approximately $283,000 on June 18, while Officer Daniel Furbee bought 10,000 shares for about $30,000 on May 30. Notably, concentrated insider buying also occurred in March, when CEO Martyn Willsher and several other executives purchased a total of 65,000 shares at $3.8-4.1 per share levels. This insider buying becomes more significant given the company's current situation. $AMPY plummeted approximately 70% from its July-August 2024 peaks of $7-8 to a low of $2.30 in April 2025, before recovering modestly to the mid-$3 range. The market capitalization stands at approximately $116 million, qualifying as a small-cap stock. Recent operational performance has been challenging. Q1 2025 revenue declined 5.6% year-over-year to $72.05 million, while earnings per share of $0.09 significantly missed analyst expectations of $0.16. The termination of the merger agreement with Juniper Capital in April added to the company's uncertainty. However, persistent insider buying suggests confidence in the company's long-term prospects. The flagship Beta field shows particularly promising performance. The newly drilled C54 well averaged 800 barrels per day in its first 20 days of production, while overall Beta field production increased 35% since early 2024. The Beta field's breakeven point is below $35 per barrel, maintaining profitability at current oil price levels. Investors should note the compelling valuation metrics. $AMPY trades at a P/E ratio of 8.4x, well below the energy sector average of 54x, and a P/B ratio of 0.32x, representing a significant discount to book value. Analyst price targets of $9.50-10.00 suggest approximately 180% upside potential from current levels. However, several cautions remain. The company faces liquidity constraints with a current ratio of 0.76, indicating short-term liabilities exceed current assets. Additionally, recent quarters have consistently missed earnings consensus, making near-term performance improvement uncertain. Energy sector analysts view the current insider buying pattern positively. Coghill's substantial purchases particularly signal strong conviction about company value rather than simple portfolio adjustments. However, the inherent volatility of oil prices and operational risks in the energy sector must be considered. Key upcoming catalysts include the Q2 earnings report scheduled for early August. The potential restart of deferred Beta field development projects and plans for non-core asset sales to improve cash position will also impact the stock. Additionally, non-operated wells in East Texas and Eagle Ford regions are expected to begin production in the second half, potentially boosting overall output. In summary, despite near-term challenges, $AMPY insiders are sending strong buying signals while the stock appears to be forming a base at current levels. Should fundamental improvements materialize, meaningful upside potential exists, though the energy sector's inherent volatility and the company's liquidity constraints warrant careful consideration.