A better buy-in window may exist right now for VAALCO Energy Inc. (EGY)

VAALCO Energy Inc. (NYSE: EGY) stock fell -0.62% on Tuesday to $4.82 against a previous-day closing price of $4.85. With 0.87 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.96 million shares. During the session, the Oil & Gas E&P company that operates in wider Energy sector, reached to the highest price of $4.9700 whereas the lowest price it dropped to was $4.8100. The 52-week range on EGY shows that it touched its highest point at $8.77 and its lowest point at $3.57 during that stretch. It currently has a 1-year price target of $9.60. With its current market cap of 523.40 million, EGY has annualized dividend of $0.13 while the current yield stands at 2.70%. Beta for the stock currently stands at 1.63.

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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 EGY was down-trending over the past week, with a drop of -0.41%, but this was up by 6.64% over a month. Three-month performance dropped to -12.52% while six-month performance fell -11.40%. The stock gained 24.23% in the past year, while it has gained 5.70% so far this year. A look at the trailing 12-month EPS for EGY yields 1.16 with Next year EPS estimates of 2.11. For the next quarter, that number is 0.33. This implies an EPS growth rate of 267.00% for this year and 95.65% for next year.

Float and Shares Shorts:

At present, 108.37 million EGY shares are outstanding with a float of 105.99 million shares on hand for trading. On Oct 13, 2022, short shares totaled 4.12 million, which was 3.77% higher than short shares on Sep 14, 2022. In addition to Mr. George Walter-Mitchell Maxwell as the firm’s CEO & Director, Mr. Ronald Y. Bain serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 34.07% of EGY’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 9.70% of EGY, in contrast to 22.95% held by mutual funds. Shares owned by individuals account for 10.48%. As the largest shareholder in EGY with 3.15% of the stake, BlackRock Fund Advisors holds 3,408,947 shares worth 3,408,947. A second-largest stockholder of EGY, Wilen Investment Management Corp., holds 3,131,627 shares, controlling over 2.89% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in EGY, holding 2,842,184 shares or 2.62% stake. With a 4.97% stake in EGY, the SPDR S&P Oil & Gas Exploration & is the largest stakeholder. A total of 5,389,834 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 3.09% of EGY stock, is the second-largest Mutual Fund holder. It holds 3,343,681 shares valued at 15.25 million. iShares Russell 2000 ETF holds 2.18% of the stake in EGY, owning 2,366,097 shares worth 10.79 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for EGY since 2 analysts follow the stock currently. There are 2 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 0 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 EGY analysts setting a high price target of $10.50 and a low target of $8.85, the average target price over the next 12 months is $9.62. Based on these targets, EGY could surge 117.84% to reach the target high and rise by 83.61% to reach the target low. Reaching the average price target will result in a growth of 99.59% 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. EGY will report FY 2022 earnings on 03/07/2024. Analysts have provided yearly estimates in a range of $1.83 being high and $0.82 being low. For EGY, this leads to a yearly average estimate of $1.40. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. VAALCO Energy Inc. surprised analysts by $0.40 when it reported $0.56 EPS against a consensus estimate of $0.16. The surprise factor in the prior quarter was -$0.17. Based on analyst estimates, the high estimate for the next quarter is $0.39 and the low estimate is $0.26. The average estimate for the next quarter is thus $0.33.

Summary of Insider Activity:

Insiders traded EGY stock several times over the past three months with 11 Buys and 5 Sells. In these transactions, 212,842 shares were bought while 154,342 shares were sold. The number of buy transactions has increased to 36 while that of sell transactions has risen to 25 over the past year. The total number of shares bought during that period was 753,804 while 289,387 shares were sold.

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