Technicals Say Montauk Renewables Inc. (MNTK) Is Worth Holding


As of Wednesday close, Montauk Renewables Inc.’s (NASDAQ:MNTK) stock was up $0.06, moving up 0.48 percent to $12.55. The average number of shares traded per day over the past five days has been 293,540 shares. 3 times new highs have been achieved over the past 5 days, with a $0.63 gain in that time frame. In the last twenty days, the average volume was 488,055, while in the previous 50 days, it was 572,790.

Since last month, MNTK stock retreated -28.61%. Shares of the company fell to $10.76 on 11/10/22, the lowest level in the past month. A 52-week high of $20.78 was reached on 09/12/22 after having rallying from a 52-week low of $9.02. Since the beginning of this year, MNTK’s stock price has risen by 22.44% or $2.30, and marked a new high 24 times. However, the stock has declined by -39.61% since its 52-week high.

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Valuation Metrics

Right now, Montauk Renewables Inc. (MNTK) has a P/E ratio of about 51.43. Besides these, the trailing price-to-sales (P/S) ratio of 9.03, the price-to-book (PB) ratio of 8.10, and the price-to-cash flow ratio of 27.37 may also be considered.

Financial Health

In the three months ended June 29, Montauk Renewables Inc.’s quick ratio stood at 4.00, while its current ratio was 4.00, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending June 29 was 0.30, and the total debt-to-equity ratio was 0.34. On the profitability front, the trailing twelve-month gross margin is 50.80% percent. In the year ended June 29, operating margins totaled 22.50%. Based on annual data, MNTK earned $3.33 million in gross profit and brought in $148.13 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 -0.40%. Return on equity (ROE) for the past 12 months was 17.60%.

In Montauk Renewables Inc.’s quarter-end financial report for June 29, it reported total debt of $65.49 million. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. MNTK’s revenue rose 28.84% to $67.88 million during the quarter, while net income inched up to $55.86 million. While analysts expected Montauk Renewables Inc. to report $0.13 quarterly earnings, the actual figure was $0.13 per share. During the quarter, the company generated $18.9 million in EBITDA. The liabilities of Montauk Renewables Inc. were 105.14 million at the end of its most recent quarter ended June 29, and its total debt was $75.62 million. The value of shareholders’ equity is $143.6 million.

Technical Picture

This quick technical analysis looks at Montauk Renewables Inc.’s (MNTK) price momentum. With a historical volatility rate of 30.58%, the RSI 9-day stood at 39.00% on 23 November.

With respect to its five-day moving average, the current Montauk Renewables Inc. price is up by +5.29% percent or $0.63. At present, MNTK shares trade -28.08% below its 20-day simple moving average and +31.00% percent above its 100-day simple moving average. However, the stock is currently trading approximately -38.24% below its SMA50 and +22.20% above its SMA200.

Stochastic coefficient K was 40.13% and Stochastic coefficient D was 34.58%, while ATR was 0.79. Given the Stochastic reading of 44.42% for the 14-day period, the RSI (14) reading has been calculated as 37.49%. As of today, the MACD Oscillator reading stands at 0.17, while the 14-day reading stands at -0.19.

Analyst Ratings

ROTH Capital launched its rating on Montauk Renewables Inc. (NASDAQ: MNTK) to a Buy in a note to investors on February 19, 2021. Montauk Renewables Inc. (MNTK) has been rated Hold by analysts. According to 1 brokerage firm, MNTK is a sell, and 0 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate Montauk Renewables Inc. stock as buy, with 1 recommending it as overweight.

With a median target price of $11.50, the current consensus forecast for the stock is $8.00 – $15.00. Based on these forecasts, analysts predict Montauk Renewables Inc. (MNTK) will achieve an average price target of $11.50.


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