There is no doubt that Ring Energy Inc. (REI) ticks all the boxes.

Ring Energy Inc. (AMEX: REI) stock fell -6.70% on Thursday to $1.81 against a previous-day closing price of $1.94. With 1.44 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.47 million shares. During the session, the Oil & Gas E&P company that operates in wider Energy sector, reached to the highest price of $1.8901 whereas the lowest price it dropped to was $1.8100. The 52-week range on REI shows that it touched its highest point at $4.89 and its lowest point at $1.62 during that stretch. It currently has a 1-year price target of $5.75. Beta for the stock currently stands at 1.98.

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Price Performance and Earnings:

Three-month performance dropped to -13.81% while six-month performance fell -37.37%. The stock lost -56.39% in the past year, while it has lost -26.42% so far this year. A look at the trailing 12-month EPS for REI yields 1.08 with Next year EPS estimates of 0.65. For the next quarter, that number is 0.12. This implies an EPS growth rate of -38.20% for this year and 17.67% 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 42.80%.

Float and Shares Shorts:

At present, 177.98 million REI shares are outstanding with a float of 147.80 million shares on hand for trading. On May 14, 2023, short shares totaled 15.49 million, which was 7.94% higher than short shares on Apr 13, 2023. 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.

Institutional Ownership:

Through their ownership of 51.63% of REI’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 9.97% of REI, in contrast to 12.94% held by mutual funds. Shares owned by individuals account for 12.38%. As the largest shareholder in REI with 3.13% of the stake, BlackRock Fund Advisors holds 5,652,282 shares worth 5,652,282. A second-largest stockholder of REI, The Vanguard Group, Inc., holds 4,266,348 shares, controlling over 2.36% of the firm’s shares. Aristotle Capital Boston LLC is the third largest shareholder in REI, holding 2,271,685 shares or 1.26% stake. With a 1.42% stake in REI, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 2,558,293 shares are owned by the mutual fund manager. The Columbia Small Cap Value Fund I, which owns about 1.29% of REI stock, is the second-largest Mutual Fund holder. It holds 2,327,210 shares valued at 4.21 million. iShares Russell 2000 ETF holds 1.14% of the stake in REI, owning 2,049,589 shares worth 3.71 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 Mar 30, 2023, REI reported revenue of $84.96M and operating income of $54.15M. The EBITDA in the recently reported quarter was $64.90M and diluted EPS was $0.32.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for REI since 0 analysts follow the stock currently. 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 $3.50, the average target price over the next 12 months is $5.75. Based on these targets, REI could surge 341.99% to reach the target high and rise by 93.37% to reach the target low. Reaching the average price target will result in a growth of 217.68% 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.

Summary of Insider Activity:

Insiders traded REI stock several times over the past three months with 2 Buys and 1 Sells. In these transactions, 100,000 shares were bought while 77,400 shares were sold. The number of buy transactions has increased to 21 while that of sell transactions has risen to 19 over the past year. The total number of shares bought during that period was 129,975,201 while 13,142,697 shares were sold.

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