Ring Energy Inc (AMEX:REI) finished Wednesday with an addition of $0.06 to close at $2.02, an upside of 3.06 percent. An average of 2,308,160 shares of common stock have been traded in the last five days. There was a gain of $0.1500 in the past week, and it reached a new high 12 times over the past 12 months. The last 20 days have seen an average of 2,554,750 shares traded, while the 50-day average volume stands at 2,514,382.
REI stock has increased by 9.19% in the last month. The company shares reached their 1-month lowest point of $1.8300 on 08/29/23. 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 -17.89% or -$0.4400 in price. In spite of this, the price is down -41.70% 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 50 days ago on Sep 12. In this transaction, the insider spent $25,956,000. 10% Owner, Warburg Pincus & Co US, LLC, disposed of 12,600,000 shares at a price of $2.06 on Aug 09. The insider now owns more than $25,956,000 worth of shares. Prior to that, 10% Owner STRONGHOLD ENERGY II OPERATING went on to Sale 12,600,000 shares at $2.06 each on Aug 09. An amount of $25,956,000 was transacted.
Valuation Metrics
Ring Energy Inc (REI) has a trailing price-to-earnings (P/E) ratio of 2.26. The stock’s beta is 1.99. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.09, the price-to-book (PB) ratio at 0.53, and the price-to-cash flow ratio at 6.10.
Financial Health
The quick ratio of Ring Energy Inc for the three months ended June 29 was 0.47, and the current ratio was 0.55, 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. Its gross profit as reported stood at $191.74 million compared to revenue of $347.25 million.
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 27 September was 63.50%, suggesting the stock is Neutral, with historical volatility in this time frame at 40.17%.
As of today, REI’s price is $1.9400 +8.02% or $0.1500 from its 5-day moving average. REI is currently trading +8.02% higher than its 20-day SMA and +14.12% higher than its 100-day SMA. However, the stock’s current price level is -6.91% below the SMA50 and -11.01% below the SMA200.
The stochastic %K and %D were 60.87% and 42.03%, respectively, and the average true range (ATR) was 0.0900. With the 14-day stochastic at 78.26% and the average true range at 0.0900, the RSI (14) stands at 57.34%. The stock has reached 0.0500 on the 9-day MACD Oscillator while the 14-day reading was at 0.0400.
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.
