W&T Offshore Inc. (WTI) Shares: Are They Risky Or Cheap?

W&T Offshore Inc. (NYSE:WTI) finished Wednesday with a subtraction of -$0.12 to close at $4.38, a downside of -2.67 percent. An average of 3,688,920 shares of common stock have been traded in the last five days. There was a gain of $0.43 in the past week. The last 20 days have seen an average of 3,329,410 shares traded, while the 50-day average volume stands at 2,921,938.

WTI stock has increased by 35.19% in the last month. The company shares reached their 1-month lowest point of $3.06 on 09/21/21. With the stock rallying to its 52-week high on 07/01/21, shares of the company touched a low of $1.35 and a high of $5.14 in 52 weeks. In spite of this, the price is down -14.79% from the 52-week high.


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Valuation Metrics

W&T Offshore Inc. (WTI) has a trailing price-to-earnings (P/E) ratio of 18.90 for the broader industry and 19.70 for the sector. In the last five years, W&T Offshore Inc.’s PE ratio has ranged between 16.96 and 1.130. The stock’s beta is 3.05. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.37, and the price-to-cash flow ratio at 10.66.

The company’s most recent quarterly dividend payment was $0.10 a share, without any change from last year.

The quick ratio of W&T Offshore Inc. for the three months ended June 29 was 1.20, and the current ratio was 1.20, indicating that the company is able to meet its debt obligations. On the profitability front, the trailing 12-month gross margin is 60.10% against a 5-year average of 29.3%. W&T Offshore Inc.’s EBITDA margin for the year ending June 29 is 34.93%, while its operating margin for the same period stands at -12.20%. Its gross profit as reported stood at $162.83 million compared to revenue of $346.63 million.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, W&T Offshore Inc.’s return on assets was -7.50%, compared to 4.7% over the last five years.

Earnings Surprise

In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $132.83 million in the quarter, while revenues of $125.65 million were grew 58.41%. The analyst consensus anticipated W&T Offshore Inc.’s latest quarter earnings to come in at $0.08 per share, but it turned out to be $0.02, a -75.00% surprise. For the quarter, EBITDA amounted to -$15.98 million. Shareholders own equity worth $142.37 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at W&T Offshore Inc. (WTI) price momentum. RSI 9-day as of the close on 13 October was 71.38%, suggesting the stock is Overbought, with historical volatility in this time frame at 53.33%.

As of today, WTI’s price is $4.36 +10.89% or $0.43 from its 5-day moving average. WTI is currently trading +23.73% higher than its 20-day SMA and +20.66% higher than its 100-day SMA. However, the stock’s current price level is +8.15% above the SMA50 and +94.67% above the SMA200.

The stochastic %K and %D were 89.58% and 91.47%, respectively, and the average true range (ATR) was 0.24. With the 14-day stochastic at 84.44% and the average true range at 0.23, the RSI (14) stands at 69.04%. The stock has reached 0.24 on the 9-day MACD Oscillator while the 14-day reading was at 0.45.

Analyst Ratings

CapitalOne upgraded W&T Offshore Inc. (NYSE: WTI) to a an Equal weight rating in its most recent analyst report. Previously, the stock was rated as a an Underweight.The consensus rating for W&T Offshore Inc. (WTI) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell WTI, while 1 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 1 others rate it as a “buy”.

What is WTI’s price target for the next 12 months?

Analysts predict a range of price targets between $5.30 and $5.50, with a median target of $5.40. Taking a look at these predictions, the average price target given by analysts for W&T Offshore Inc. (WTI) stock is $5.40.

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