Ring Energy Inc. (AMEX:REI) finished Wednesday with an addition of $0.01 to close at $1.87, an upside of 0.54 percent. An average of 1,629,300 shares of common stock have been traded in the last five days. There was a fall of -$0.0100 in the past week, and it reached a new high 4 times over the past 12 months. The last 20 days have seen an average of 2,796,055 shares traded, while the 50-day average volume stands at 2,513,796.
REI stock has decreased by -20.09% in the last month. The company shares reached their 1-month lowest point of $1.7700 on 08/23/23. With the stock rallying to its 52-week high on 01/23/23, shares of the company touched a low of $1.62 and a high of $3.46 in 52 weeks. It has reached a new high 3 times so far this year and lost -23.98% or -$0.5900 in price. In spite of this, the price is down -46.03% from the 52-week high.
Insider Transactions
REI stock investors should be aware that Ring Energy Inc. (REI) stock had its last reported insider trading activity 157 days ago on May 12.
Valuation Metrics
Ring Energy Inc. (REI) has a trailing price-to-earnings (P/E) ratio of 2.07. The stock’s beta is 2.06. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.02, the price-to-book (PB) ratio at 0.49, and the price-to-cash flow ratio at 5.70.
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 0.54 and a total debt to equity ratio of 0.54 for the quarter ending June 29. Ring Energy Inc.’s EBITDA margin for the year ending June 29 is 72.16%, while its operating margin for the same period stands at 45.50%. Its gross profit as reported stood at $191.74 million compared to revenue of $347.25 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 11.90%.
Earnings Surprise
For the three-month period that ended June 29, Ring Energy Inc. had $397.0 million in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $28.79 million in the quarter, while revenues of $32.72 million were shrunk -45.68%. The analyst consensus anticipated Ring Energy Inc.’s latest quarter earnings to come in at $0.1 per share, but it turned out to be $0.14, a 40.00% surprise. For the quarter, EBITDA amounted to $51.67 million. Shareholders own equity worth $195.36 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 23 August was 32.33%, suggesting the stock is Neutral, with historical volatility in this time frame at 28.43%.
As of today, REI’s price is $1.8980 -0.53% or -$0.0100 from its 5-day moving average. REI is currently trading -20.76% lower than its 20-day SMA and +2.19% higher than its 100-day SMA. However, the stock’s current price level is +4.47% above the SMA50 and -39.68% below the SMA200.
The stochastic %K and %D were 13.71% and 12.33%, respectively, and the average true range (ATR) was 0.1031. With the 14-day stochastic at 18.52% and the average true range at 0.1060, the RSI (14) stands at 38.36%. The stock has reached -0.0256 on the 9-day MACD Oscillator while the 14-day reading was at -0.0910.
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. The consensus rating for Ring Energy Inc. (REI) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell REI, while 2 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 REI’s price target for the next 12 months?
Analysts predict a range of price targets between $3.50 and $3.50, with a median target of $3.50. Taking a look at these predictions, the average price target given by analysts for Ring Energy Inc. (REI) stock is $3.50.
