Can Ring Energy Inc. (REI) Add Value To Your Portfolio?

As of Friday close, Ring Energy Inc.’s (AMEX:REI) stock was up $0.23, moving up 5.94 percent to $4.10. The average number of shares traded per day over the past five days has been 2,983,260 shares. 1 time new highs have been achieved over the past 5 days, with a -$0.86 fall in that time frame. In the last twenty days, the average volume was 2,881,715, while in the previous 50 days, it was 3,448,764.

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Since last month, REI stock retreated -2.38%. Shares of the company fell to $3.71 on 05/12/22, the lowest level in the past month. A 52-week high of $5.09 was reached on 05/06/22 after having rallying from a 52-week low of $1.81. Since the beginning of this year, REI’s stock price has risen by 79.82% or $1.82, and marked a new high 22 times. However, the stock has declined by -19.45% since its 52-week high.

Ring Energy Inc. (REI) last reported insider trading activity 267 days ago on Aug 20. Kruse William R, the 10% Owner of the company, purchased of 252,551 shares for $1.90 on Aug 20. It resulted in a $479,089 investment by the insider. Kruse William R added 511,501 shares at an average price of $1.93 on Aug 19. The insider now owns 12,687,183 shares following the transaction. On Jul 16, 10% Owner Kruse William R bought 600,000 shares at $2.59 apiece. The transaction was valued at $1,554,000.

Valuation Metrics

The stock’s beta is 1.87. Besides these, the trailing price-to-sales (P/S) ratio of 2.09, the price-to-book (PB) ratio of 1.36, and the price-to-cash flow ratio of 5.69 may also be considered.

Financial Health

In the three months ended September 29, Ring Energy Inc.’s quick ratio stood at 0.40, while its current ratio was 0.40, showing that the company is not able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending September 29 was 0.97, and the total debt-to-equity ratio was 0.97. On the profitability front, the trailing twelve-month gross margin is 92.00% percent. In the year ended September 29, operating margins totaled 48.80%. Based on annual data, REI earned $95.76 million in gross profit and brought in $196.31 million in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 16.20%. Return on equity (ROE) for the past 12 months was 1.20%.

In Ring Energy Inc.’s quarter-end financial report for September 29, it reported total debt of $280.0 million. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. REI’s revenue rose 42.07% to $59.67 million during the quarter, while net income inched up to $68.18 million. While analysts expected Ring Energy Inc. to report $0.09 quarterly earnings, the actual figure was $0.07 per share, beating the consensus estimate by -22.20%. During the quarter, the company generated $48.17 million in EBITDA. The liabilities of Ring Energy Inc. were 394.8 million at the end of its most recent quarter ended September 29, and its total debt was $298.12 million. The value of shareholders’ equity is $106.7 million.

Technical Picture

This quick technical analysis looks at Ring Energy Inc.’s (REI) price momentum. With a historical volatility rate of 97.12%, the RSI 9-day stood at 41.18% on 13 May.

With respect to its five-day moving average, the current Ring Energy Inc. price is down by -17.34% percent or -$0.86. At present, REI shares trade -1.91% below its 20-day simple moving average and +91.59% percent above its 100-day simple moving average. However, the stock is currently trading approximately +22.75% above its SMA50 and +50.18% above its SMA200.

Stochastic coefficient K was 23.67% and Stochastic coefficient D was 29.85%, while ATR was 0.38. Given the Stochastic reading of 28.26% for the 14-day period, the RSI (14) reading has been calculated as 46.01%. As of today, the MACD Oscillator reading stands at -0.44, while the 14-day reading stands at -0.40.

Analyst Ratings

ROTH Capital upgraded its rating on Ring Energy Inc. (AMEX: REI) to a Buy in a note to investors on October 14, 2021. The analysts firm previously had a Neutral rating on the stock.Ring Energy Inc. (REI) has been rated Overweight by analysts. According to 0 brokerage firms, REI is a sell, and 1 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate Ring Energy Inc. stock as buy, with 2 recommending it as overweight.

With a median target price of $4.90, the current consensus forecast for the stock is $4.00 – $5.40. Based on these forecasts, analysts predict Ring Energy Inc. (REI) will achieve an average price target of $4.77.


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