Ring Energy Inc. (REI) Price Target: Is It Set To Rise Or Fall In Price?

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RTX Stock
RTX Stock

Ring Energy Inc. (AMEX:REI) traded with a subtraction of $0.0 to $2.58 on Thursday, a downside of -0.19 percent. An average of 1,702,690 shares of common stock have been traded in the last five days. There was a fall of -$0.31 in the past week, and it reached a new high 16 times over the past 12 months. The last 20 days have seen an average of 1,904,078 shares traded, while the 50-day average volume stands at 2,074,219.

REI stock has decreased by -11.03% in the last month. The company shares reached their 1-month lowest point of $2.52 on 09/22/22. With the stock rallying to its 52-week high on 05/06/22, shares of the company touched a low of $2.02 and a high of $5.09 in 52 weeks. It has reached a new high 22 times so far this year and achieved 13.16% or $0.28 in price. In spite of this, the price is down -49.41% from the 52-week high.


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Valuation Metrics

Ring Energy Inc. (REI) has a trailing price-to-earnings (P/E) ratio of 4.13. The stock’s beta is 1.88. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.07, the price-to-book (PB) ratio at 0.77, and the price-to-cash flow ratio at 2.66.

Financial Health

The quick ratio of Ring Energy Inc. for the three months ended June 29 was 0.50, and the current ratio was 0.50, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.76 and a total debt to equity ratio of 0.76 for the quarter ending June 29. Its gross profit as reported stood at $95.76 million compared to revenue of $196.31 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, Ring Energy Inc.’s return on assets was 12.40%.

Earnings Surprise

For the three-month period that ended June 29, Ring Energy Inc. had $270.0 million in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $41.94 million in the quarter, while revenues of $7.11 million were grew 137.89%. The analyst consensus anticipated Ring Energy Inc.’s latest quarter earnings to come in at $0.25 per share, but it turned out to be $0.24, a -4.00% surprise. For the quarter, EBITDA amounted to $65.09 million. Shareholders own equity worth $107.24 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Ring Energy Inc. (REI) price momentum. RSI 9-day as of the close on 21 September was 28.64%, suggesting the stock is oversold, with historical volatility in this time frame at 46.96%.

As of today, REI’s price is $2.68 -10.98% or -$0.31 from its 5-day moving average. REI is currently trading -20.90% lower than its 20-day SMA and -42.84% lower than its 100-day SMA. However, the stock’s current price level is +4.71% above the SMA50 and +12.56% above the SMA200.

The stochastic %K and %D were 11.26% and 13.22%, respectively, and the average true range (ATR) was 0.17. With the 14-day stochastic at 5.93% and the average true range at 0.18, the RSI (14) stands at 35.90%. The stock has reached -0.22 on the 9-day MACD Oscillator while the 14-day reading was at -0.27.

Analyst Ratings

ROTH Capital downgraded Ring Energy Inc. (AMEX: REI) to a a Neutral rating in its most recent analyst report. Previously, the stock was rated as a Buy.

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

Analysts predict a range of price targets between $3.00 and $7.50, with a median target of $5.25. Taking a look at these predictions, the average price target given by analysts for Ring Energy Inc. (REI) stock is $5.25.

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