Does Gran Tierra Energy Inc. (GTE) offer a good opportunity for investors?

Gran Tierra Energy Inc. (AMEX: GTE) stock fell -2.50% on Tuesday to $0.94 against a previous-day closing price of $0.97. With 1.25 million shares changed hands, the volume of the stock remained lighter than its average volume of 4.34 million shares. During the session, the Oil & Gas E&P company that operates in wider Energy sector, reached to the highest price of $0.9696 whereas the lowest price it dropped to was $0.9351. The 52-week range on GTE shows that it touched its highest point at $2.15 and its lowest point at $0.76 during that stretch. It currently has a 1-year price target of $2.02. Beta for the stock currently stands at 2.47.

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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 GTE was up-trending over the past week, with a rise of 2.84%, but this was down by -1.98% over a month. Three-month performance dropped to -27.36% while six-month performance fell -22.60%. The stock gained 10.32% in the past year, while it has lost -4.62% so far this year. A look at the trailing 12-month EPS for GTE yields 0.61 with Next year EPS estimates of 0.41. For the next quarter, that number is 0.07. This implies an EPS growth rate of 105.40% for this year and -1.68% for next year.

Float and Shares Shorts:

At present, 367.31 million GTE shares are outstanding with a float of 349.57 million shares on hand for trading. On Oct 13, 2022, short shares totaled 3.61 million, which was 1.01% higher than short shares on Sep 14, 2022. In addition to Mr. Gary Stephen Guidry P.Eng. as the firm’s Pres, CEO & Director, Mr. Ryan Paul Ellson C.A., CA serves as its CFO & Exec. VP.

Institutional Ownership:

Through their ownership of 33.94% of GTE’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 7.56% of GTE, in contrast to 25.47% held by mutual funds. Shares owned by individuals account for 24.14%. As the largest shareholder in GTE with 5.29% of the stake, GMT Capital Corp. holds 19,530,309 shares worth 19,530,309. A second-largest stockholder of GTE, RBC Global Asset Management, Inc., holds 17,482,506 shares, controlling over 4.74% of the firm’s shares. Two Sigma Investments LP is the third largest shareholder in GTE, holding 7,395,209 shares or 2.01% stake. With a 1.30% stake in GTE, the DFA International Small Cap Value is the largest stakeholder. A total of 4,780,033 shares are owned by the mutual fund manager. The DFA Canadian Small Company Series, which owns about 0.52% of GTE stock, is the second-largest Mutual Fund holder. It holds 1,926,195 shares valued at 1.91 million. DFA International Core Equity Por holds 0.52% of the stake in GTE, owning 1,921,398 shares worth 1.9 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for GTE since 7 analysts follow the stock currently. There are 4 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 3 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 GTE analysts setting a high price target of $4.65 and a low target of $1.12, the average target price over the next 12 months is $2.16. Based on these targets, GTE could surge 394.68% to reach the target high and rise by 19.15% to reach the target low. Reaching the average price target will result in a growth of 129.79% 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. GTE will report FY 2022 earnings on 02/21/2024. Analysts have provided yearly estimates in a range of $0.67 being high and $0.35 being low. For GTE, this leads to a yearly average estimate of $0.49. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Gran Tierra Energy Inc. surprised analysts by $0.04 when it reported $0.10 EPS against a consensus estimate of $0.06. The surprise factor in the prior quarter was $0.04. Based on analyst estimates, the high estimate for the next quarter is $0.07 and the low estimate is $0.07. The average estimate for the next quarter is thus $0.07.

Summary of Insider Activity:

Insiders traded GTE stock several times over the past three months with 87 Buys and 0 Sells. In these transactions, 10,754,315 shares were bought while 0 shares were sold. The number of buy transactions has increased to 319 while that of sell transactions has risen to 6 over the past year. The total number of shares bought during that period was 18,945,038 while 1,667,888 shares were sold.

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