Cimarex Energy Co. (NYSE:XEC): The Fundamentals Have Changed

Cimarex Energy Co. (NYSE:XEC) previous close was $24.77 while the outstanding shares total 99.88M. The firm has a beta of 2.42. XEC’s shares traded lower over the last trading session, losing -1.49% on 10/13/20. The shares fell to a low of $24.39 before closing at $24.40. Intraday shares traded counted 0.98 million, which was 32.18% higher than its 30-day average trading volume of 1.45M. The stock’s Relative Strength Index (RSI) is 45.64, with weekly volatility at 4.99% and ATR at 1.40. The XEC stock’s 52-week price range has touched low of $12.15 and a $55.29 high.

Investors have identified the Oil & Gas E&P company Cimarex Energy Co. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $2.58 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Cimarex Energy Co. (XEC) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 424102000 million total, with 504775000 million as their total liabilities.

XEC were able to record -3.13 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by -50.88 million. In cash movements, the company had a total of 453.5 million as operating cash flow.

Potential earnings growth for Cimarex Energy Co. (XEC)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Cimarex Energy Co. recorded a total of 249.38 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -119.13% coming in sequential stages and their sales for the third quarter reducing by -89.6%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 1.43 billion trying to sell their products during the last quarter, with the result yielding a gross income of -1.18 billion. This allows shareholders to hold on to 99.88M with the revenue now reading -9.28 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (-0.48 cents a share).

Having a look at the company’s valuation, the company is expected to record 4.46 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on XEC sounds very interesting.

Is the stock of XEC attractive?

In related news, Ex VP, BELL STEPHEN P sold 12,500 shares of the company’s stock in a transaction that recorded on Aug 26. The sale was performed at an average price of 28.09, for a total value of 351,098. As the sale deal closes, the CEO and President, JORDEN THOMAS E now bought 10,971 shares of the company’s stock, valued at 181,899. Also, Vice President, Abbott Gary R bought 10,000 shares of the company’s stock in a deal that was recorded on Mar 11. The shares were price at an average price of 16.13 per share, with a total market value of 161,331. Following this completion of acquisition, the CEO and President, JORDEN THOMAS E now holds 10,000 shares of the company’s stock, valued at 162,800. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.50%.

23 out of 27 analysts covering the stock have rated it a Buy, while 3 have maintained a Hold recommendation on Cimarex Energy Co.. 0 analysts has assigned a Sell rating on the XEC stock. The 12-month mean consensus price target for the company’s shares has been set at $40.67.