Ring Energy Inc. (AMEX: REI) stock fell -2.77% on Wednesday to $2.81 against a previous-day closing price of $2.89. With 1.16 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.18 million shares. During the session, the Oil & Gas E&P company that operates in wider Energy sector, reached to the highest price of $2.8601 whereas the lowest price it dropped to was $2.7650. The 52-week range on REI shows that it touched its highest point at $5.09 and its lowest point at $2.02 during that stretch. It currently has a 1-year price target of $5.50. Beta for the stock currently stands at 2.03.
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 REI was down-trending over the past week, with a drop of -6.33%, but this was down by -6.02% over a month. Three-month performance dropped to -12.73% while six-month performance fell -34.19%. The stock lost -2.43% in the past year, while it has gained 23.25% so far this year. A look at the trailing 12-month EPS for REI yields 1.00 with Next year EPS estimates of 1.06. For the next quarter, that number is 0.27. This implies an EPS growth rate of 100.80% for this year and 18.33% for next year. EPS is expected to grow by 37.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 15.20%.
Float and Shares Shorts:
At present, 115.38 million REI shares are outstanding with a float of 86.32 million shares on hand for trading. On Oct 13, 2022, short shares totaled 16.52 million, which was 12.55% higher than short shares on Sep 14, 2022. In addition to Mr. Paul D. McKinney as the firm’s CEO & Chairman, Mr. Travis T. Thomas serves as its Exec. VP, CFO, Corp. Sec. & Treasurer.
Through their ownership of 46.13% of REI’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 8.29% of REI, in contrast to 15.43% held by mutual funds. Shares owned by individuals account for 12.73%. As the largest shareholder in REI with 2.96% of the stake, BlackRock Fund Advisors holds 5,152,680 shares worth 5,152,680. A second-largest stockholder of REI, The Vanguard Group, Inc., holds 4,164,153 shares, controlling over 2.39% of the firm’s shares. Cooper Creek Partners Management is the third largest shareholder in REI, holding 2,338,500 shares or 1.34% stake. With a 1.47% stake in REI, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 2,558,293 shares are owned by the mutual fund manager. The iShares Russell 2000 ETF, which owns about 1.12% of REI stock, is the second-largest Mutual Fund holder. It holds 1,953,777 shares valued at 6.23 million. Vanguard Extended Market Index Fu holds 0.66% of the stake in REI, owning 1,150,452 shares worth 3.67 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for REI since 3 analysts follow the stock currently. There are 1 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 0 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 REI analysts setting a high price target of $8.00 and a low target of $3.00, the average target price over the next 12 months is $5.50. Based on these targets, REI could surge 184.7% to reach the target high and rise by 6.76% to reach the target low. Reaching the average price target will result in a growth of 95.73% 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. REI will report FY 2022 earnings on 03/15/2023. Analysts have provided yearly estimates in a range of $0.93 being high and $0.87 being low. For REI, this leads to a yearly average estimate of $0.90. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Ring Energy Inc. surprised analysts by $0.04 when it reported $0.28 EPS against a consensus estimate of $0.24. The surprise factor in the prior quarter was $0.04. Based on analyst estimates, the high estimate for the next quarter is $0.29 and the low estimate is $0.24. The average estimate for the next quarter is thus $0.27.
Summary of Insider Activity:
Insiders traded REI stock several times over the past three months with 5 Buys and 7 Sells. In these transactions, 127,720,237 shares were bought while 12,956,559 shares were sold. The number of buy transactions has increased to 21 while that of sell transactions has risen to 12 over the past year. The total number of shares bought during that period was 129,684,796 while 12,982,835 shares were sold.