Is Range Resources Corporation (RRC) positioned for future growth?

Range Resources Corporation (NYSE: RRC) stock jumped 0.28% on Friday to $31.77 against a previous-day closing price of $31.68. With 3.34 million shares changed hands, the volume of the stock remained lighter than its average volume of 5.25 million shares. During the session, the Oil & Gas E&P company that operates in wider Energy sector, reached to the highest price of $32.16 whereas the lowest price it dropped to was $30.36. The 52-week range on RRC shows that it touched its highest point at $37.44 and its lowest point at $12.37 during that stretch. It currently has a 1-year price target of $39.30. Beta for the stock currently stands at 2.14.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of RRC was down-trending over the past week, with a drop of -5.70%, but this was up by 31.39% over a month. Three-month performance surged to 2.42% while six-month performance rose 55.89%. The stock gained 112.65% in the past year, while it has gained 78.18% so far this year. A look at the trailing 12-month EPS for RRC yields 1.78 with Next year EPS estimates of 5.42. For the next quarter, that number is 1.31. This implies an EPS growth rate of 154.60% for this year and 8.97% for next year. EPS is expected to grow by 29.52% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 20.90%.

Float and Shares Shorts:

At present, 259.80 million RRC shares are outstanding with a float of 245.61 million shares on hand for trading. On Jul 14, 2022, short shares totaled 13.8 million, which was 5.56% higher than short shares on Jun 14, 2022. In addition to Mr. Jeffrey L. Ventura as the firm’s Pres, CEO & Director, Mr. Mark S. Scucchi serves as its Sr. VP & CFO.

Institutional Ownership:

Through their ownership of 89.26% of RRC’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 51.85% of RRC, in contrast to 33.03% held by mutual funds. Shares owned by individuals account for 19.52%. As the largest shareholder in RRC with 11.46% of the stake, Fidelity Management & Research Co holds 30,924,755 shares worth 30,924,755. A second-largest stockholder of RRC, BlackRock Fund Advisors, holds 25,760,642 shares, controlling over 9.55% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in RRC, holding 24,323,705 shares or 9.02% stake. With a 2.81% stake in RRC, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 7,566,643 shares are owned by the mutual fund manager. The iShares Core S&P Mid Cap ETF, which owns about 2.77% of RRC stock, is the second-largest Mutual Fund holder. It holds 7,471,787 shares valued at 184.93 million. Vanguard Small Cap Index Fund holds 2.40% of the stake in RRC, owning 6,476,992 shares worth 160.31 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2022, RRC reported revenue of $1.47B and operating income of $862.03M. It generated $452.86M net income for the quarter, which came to $537.15M over the last twelve months. The EBITDA in the recently reported quarter was $967.75M and diluted EPS was $1.77. EBITDA for the full year was $2.75B.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for RRC since 24 analysts follow the stock currently. There are 7 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 14 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With RRC analysts setting a high price target of $61.00 and a low target of $25.00, the average target price over the next 12 months is $39.00. Based on these targets, RRC could surge 92.01% to reach the target high and fall by -21.31% to reach the target low. Reaching the average price target will result in a growth of 22.76% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. RRC will report FY 2022 earnings on 02/21/2023. Analysts have provided yearly estimates in a range of $6.22 being high and $2.66 being low. For RRC, this leads to a yearly average estimate of $5.02. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Range Resources Corporation surprised analysts by $0.05 when it reported $1.27 EPS against a consensus estimate of $1.22. The surprise factor in the prior quarter was -$0.01. Based on analyst estimates, the high estimate for the next quarter is $1.69 and the low estimate is $0.97. The average estimate for the next quarter is thus $1.31.

Summary of Insider Activity:

Insiders traded RRC stock several times over the past three months with 10 Buys and 12 Sells. In these transactions, 134,137 shares were bought while 395,260 shares were sold. The number of buy transactions has increased to 23 while that of sell transactions has risen to 19 over the past year. The total number of shares bought during that period was 1,068,735 while 587,595 shares were sold.

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