Ring Energy Inc. (AMEX: REI) stock fell -3.98% on Friday to $1.93 against a previous-day closing price of $2.01. With 7.34 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.44 million shares. During the session, the Oil & Gas E&P company that operates in wider Energy sector, reached to the highest price of $2.0000 whereas the lowest price it dropped to was $1.9200. The 52-week range on REI shows that it touched its highest point at $3.46 and its lowest point at $1.62 during that stretch. It currently has a 1-year price target of $3.50. Beta for the stock currently stands at 2.04.
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 up-trending over the past week, with a rise of 0.52%, but this was up by 2.66% over a month. Three-month performance surged to 4.89% while six-month performance rose 10.92%. The stock lost -35.88% in the past year, while it has lost -21.54% so far this year. A look at the trailing 12-month EPS for REI yields 0.90 with Next year EPS estimates of 0.67. For the next quarter, that number is 0.11. This implies an EPS growth rate of -39.30% for this year and 24.03% 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, 193.08 million REI shares are outstanding with a float of 128.76 million shares on hand for trading. On Aug 30, 2023, short shares totaled 16.03 million, which was 8.21% higher than short shares on Jul 30, 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.
Through their ownership of 47.85% of REI’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 35.56% of REI, in contrast to 11.84% held by mutual funds. Shares owned by individuals account for 10.18%. As the largest shareholder in REI with 3.57% of the stake, BlackRock Fund Advisors holds 6,973,877 shares worth 6,973,877. A second-largest stockholder of REI, The Vanguard Group, Inc., holds 4,587,909 shares, controlling over 2.35% of the firm’s shares. Columbia Management Investment Ad is the third largest shareholder in REI, holding 3,676,379 shares or 1.88% stake. With a 1.36% stake in REI, the iShares Russell 2000 ETF is the largest stakeholder. A total of 2,658,128 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 1.31% of REI stock, is the second-largest Mutual Fund holder. It holds 2,558,293 shares valued at 4.84 million. Columbia Small Cap Value Fund I holds 1.18% of the stake in REI, owning 2,307,920 shares worth 4.36 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 Jun 29, 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.
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 $3.50 and a low target of $3.50, the average target price over the next 12 months is $3.50. Based on these targets, REI could surge 81.35% to reach the target high and rise by 81.35% to reach the target low. Reaching the average price target will result in a growth of 81.35% 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 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 18 while that of sell transactions has risen to 18 over the past year. The total number of shares bought during that period was 129,019,426 while 13,153,215 shares were sold.