Parsley Energy Inc. (NYSE:PE) Relative Strength Index (RSI) is 64.67, with weekly volatility at 4.82% and ATR at 0.70. The PE stock’s 52-week price range has touched low of $3.92 and a $20.13 high. Intraday shares traded counted 5.78 million, which was 36.1% higher than its 30-day average trading volume of 9.05M. Its shares traded higher over the last trading session, gaining 0.21% on 12/09/20. The shares fell to a low of $13.94 before closing at $14.21. PE’s previous close was $14.18 while the outstanding shares total 377.45M. The firm has a beta of 2.23.
Investors have identified the Oil & Gas E&P company Parsley Energy Inc. 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 $5.40 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.
Parsley Energy Inc. (PE) 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. For PE, the company has in raw cash 4.66 million on their books with 107.72 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 269.89 million total, with 608.31 million as their total liabilities.
PE were able to record 118.08 million as free cash flow during the Q3 2020 quarter of the year, this saw their quarterly net cash flow reduce by -16.08 million. In cash movements, the company had a total of 761.07 million as operating cash flow.
Potential earnings growth for Parsley Energy Inc. (PE)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the Q3 2020 quarter of the year, Parsley Energy Inc. recorded a total of 447.39 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -14.03% coming in sequential stages and their sales for the Q3 2020 quarter increasing by 50.78%.
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 291.16 million trying to sell their products during the last quarter, with the result yielding a gross income of 156.23 million. This allows shareholders to hold on to 377.45M with the recently reported earning now reading 0.06 cents per share. This is a figure that compared to analyst’s prediction for their Q3 2020 (0.22 cents a share).
Having a look at the company’s valuation, the company is expected to record 1.14 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 PE sounds very interesting.
Is the stock of PE attractive?
In related news, See Remarks, Sheffield Bryan sold 300,000 shares of the company’s stock in a transaction that recorded on Aug 20. The sale was performed at an average price of 11.46, for a total value of 3,438,000. As the sale deal closes, the See Remarks, Sheffield Bryan now sold 300,000 shares of the company’s stock, valued at 3,600,000. Also, See Remarks, Sheffield Bryan sold 300,000 shares of the company’s stock in a deal that was recorded on Aug 18. The shares were price at an average price of 12.12 per share, with a total market value of 3,636,000. Following this completion of acquisition, the See Remarks, Dalton Ryan now holds 60,000 shares of the company’s stock, valued at 668,400. In the last 6 months, insiders have changed their ownership in shares of company stock by 2.40%.
19 out of 27 analysts covering the stock have rated it a Buy, while 5 have maintained a Hold recommendation on Parsley Energy Inc.. 1 analysts has assigned a Sell rating on the PE stock. The 12-month mean consensus price target for the company’s shares has been set at $14.71.