This trade activity should not be overlooked: Earthstone Energy Inc. (ESTE)

Earthstone Energy Inc. (NYSE: ESTE) stock fell -2.04% on Tuesday to $14.40 against a previous-day closing price of $14.70. With 1.56 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.5 million shares. During the session, the Oil & Gas E&P company that operates in wider Energy sector, reached to the highest price of $15.00 whereas the lowest price it dropped to was $14.40. The 52-week range on ESTE shows that it touched its highest point at $22.25 and its lowest point at $10.65 during that stretch. It currently has a 1-year price target of $26.00. Beta for the stock currently stands at 2.12.

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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 ESTE was up-trending over the past week, with a rise of 3.37%, but this was up by 5.42% over a month. Three-month performance dropped to -4.89% while six-month performance rose 12.76%. The stock gained 18.71% in the past year, while it has gained 1.19% so far this year. A look at the trailing 12-month EPS for ESTE yields 3.50 with Next year EPS estimates of 5.38. For the next quarter, that number is 1.42. This implies an EPS growth rate of 256.80% for this year and 5.49% for next year. EPS is expected to grow by 35.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 17.50%.

Float and Shares Shorts:

At present, 105.25 million ESTE shares are outstanding with a float of 74.81 million shares on hand for trading. On Oct 13, 2022, short shares totaled 13.55 million, which was 12.85% higher than short shares on Sep 14, 2022. In addition to Mr. Frank A. Lodzinski as the firm’s Exec. Chairman, Mr. Robert J. Anderson serves as its CEO, Pres & Director.

Institutional Ownership:

Through their ownership of 80.52% of ESTE’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 31.02% of ESTE, in contrast to 21.55% held by mutual funds. Shares owned by individuals account for 20.05%. As the largest shareholder in ESTE with 4.41% of the stake, SSgA Funds Management, Inc. holds 4,647,878 shares worth 4,647,878. A second-largest stockholder of ESTE, Ranger Investment Management LP, holds 2,781,464 shares, controlling over 2.64% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in ESTE, holding 2,717,327 shares or 2.58% stake. With a 4.54% stake in ESTE, the SPDR S&P Oil & Gas Exploration & is the largest stakeholder. A total of 4,780,173 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 1.85% of ESTE stock, is the second-largest Mutual Fund holder. It holds 1,946,058 shares valued at 27.69 million. Delaware Small Cap Core Fund holds 1.56% of the stake in ESTE, owning 1,646,317 shares worth 23.43 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ESTE since 7 analysts follow the stock currently. There are 5 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 ESTE analysts setting a high price target of $37.00 and a low target of $19.00, the average target price over the next 12 months is $27.43. Based on these targets, ESTE could surge 156.94% to reach the target high and rise by 31.94% to reach the target low. Reaching the average price target will result in a growth of 90.49% 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. ESTE will report FY 2022 earnings on 03/07/2024. Analysts have provided yearly estimates in a range of $5.77 being high and $4.19 being low. For ESTE, this leads to a yearly average estimate of $4.86. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Earthstone Energy Inc. surprised analysts by -$0.11 when it reported $1.30 EPS against a consensus estimate of $1.41. The surprise factor in the prior quarter was -$0.00. Based on analyst estimates, the high estimate for the next quarter is $1.56 and the low estimate is $1.15. The average estimate for the next quarter is thus $1.35.

Summary of Insider Activity:

Insiders traded ESTE stock several times over the past three months with 11 Buys and 4 Sells. In these transactions, 292,615 shares were bought while 160,690 shares were sold. The number of buy transactions has increased to 32 while that of sell transactions has risen to 36 over the past year. The total number of shares bought during that period was 54,638,594 while 58,987,691 shares were sold.

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