Is Golar LNG Limited (GLNG) A Risky Investment?


Golar LNG Limited (NASDAQ:GLNG) finished Friday with an addition of $0.28 to close at $22.79, an upside of 1.24 percent. An average of 901,880 shares of common stock have been traded in the last five days. There was a gain of $0.36 in the past week, and it reached a new high 37 times over the past 12 months. The last 20 days have seen an average of 1,093,135 shares traded, while the 50-day average volume stands at 1,226,702.

GLNG stock has decreased by -9.09% in the last month. The company shares reached their 1-month lowest point of $21.68 on 12/28/22. With the stock rallying to its 52-week high on 08/25/22, shares of the company touched a low of $11.74 and a high of $30.66 in 52 weeks. It has reached a new high 36 times so far this year and achieved 83.94% or $10.40 in price. In spite of this, the price is down -25.66% from the 52-week high.

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Valuation Metrics

Golar LNG Limited (GLNG) has a trailing price-to-earnings (P/E) ratio of 3.04. The stock’s beta is 0.64. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 7.27, the price-to-book (PB) ratio at 1.01, and the price-to-cash flow ratio at 88.22.

Financial Health

Further, the company has a long term debt to equity ratio of 0.41 and a total debt to equity ratio of 0.56 for the quarter ending June 29. Its gross profit as reported stood at $320.67 million compared to revenue of $451.76 million.

Earnings Surprise

For the three-month period that ended June 29, Golar LNG Limited had -$1.36 billion in total debt. The company posted a net income of $413.85 million in the quarter, while revenues were grew 166.1%. The analyst consensus anticipated Golar LNG Limited’s latest quarter earnings to come in at $0.04 per share, but it turned out to be $0.24, a 500.00% surprise.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Golar LNG Limited (GLNG) price momentum. RSI 9-day as of the close on 30 December was 44.38%, suggesting the stock is Neutral, with historical volatility in this time frame at 40.02%.

As of today, GLNG’s price is $22.63 +1.60% or $0.36 from its 5-day moving average. GLNG is currently trading -9.06% lower than its 20-day SMA and -5.51% lower than its 100-day SMA. However, the stock’s current price level is -12.08% below the SMA50 and +23.93% above the SMA200.

The stochastic %K and %D were 21.02% and 20.08%, respectively, and the average true range (ATR) was 0.88. With the 14-day stochastic at 33.15% and the average true range at 0.91, the RSI (14) stands at 42.68%. The stock has reached -0.35 on the 9-day MACD Oscillator while the 14-day reading was at -0.68.

Analyst Ratings

BofA Securities upgraded Golar LNG Limited (NASDAQ: GLNG) to a a Buy rating in its most recent analyst report. Previously, the stock was rated as a Neutral. The consensus rating for Golar LNG Limited (GLNG) among analysts is Buy. According to current brokerage recommendations, 0 brokerage firms advise that investors sell GLNG, while 0 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 12 others rate it as a “buy”.

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

Analysts predict a range of price targets between $30.00 and $38.00, with a median target of $35.00. Taking a look at these predictions, the average price target given by analysts for Golar LNG Limited (GLNG) stock is $34.21.


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