Ring Energy Inc. (AMEX:REI) Relative Strength Index (RSI) is 47.46, with weekly volatility at 6.56% and ATR at 0.17. The REI stock’s 52-week price range has touched low of $0.43 and a $3.36 high. Intraday shares traded counted 2.45 million, which was 45.85% higher than its 30-day average trading volume of 4.52M. Its shares traded lower over the last trading session, losing -1.80% on 05/24/21. The shares fell to a low of $2.08 before closing at $2.18. REI’s previous close was $2.22 while the outstanding shares total 99.09M. The firm has a beta of 2.46.
Investors have identified the Oil & Gas E&P company Ring 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 $214.47 million, 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.
Ring Energy Inc. (REI) 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 24.77 million total, with 66.94 million as their total liabilities.
REI were able to record 15.41 million as free cash flow during the 08/11/2021 quarter of the year, this saw their quarterly net cash flow reduce by -1.88 million. In cash movements, the company had a total of 15.69 million as operating cash flow.
Potential earnings growth for Ring Energy Inc. (REI)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/11/2021 quarter of the year, Ring Energy Inc. recorded a total of 39.5 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -0.17% coming in sequential stages and their sales for the 08/11/2021 quarter increasing by 20.63%.
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 23.24 million trying to sell their products during the last quarter, with the result yielding a gross income of 16.27 million. This allows shareholders to hold on to 99.09M with the recently reported earning now reading -0.19 cents per share. This is a figure that compared to analyst’s prediction for their 08/11/2021 (0.07 cents a share).
Having a look at the company’s valuation, the company is expected to record 0.30 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 REI sounds very interesting.
Is the stock of REI attractive?
In related news, 10% Owner, Kruse William R bought 383,800 shares of the company’s stock in a transaction that recorded on Jan 06. The purchase was performed at an average price of 0.74, for a total value of 285,547. As the purchase deal closes, the 10% Owner, Kruse William R now bought 131,200 shares of the company’s stock, valued at 93,021. Also, 10% Owner, Kruse William R bought 619,898 shares of the company’s stock in a deal that was recorded on Dec 31. The shares were cost at an average price of 0.67 per share, with a total market value of 412,407. Following this completion of disposal, the Former CEO & Director, Hoffman Kelly W. now holds 40,000 shares of the company’s stock, valued at 22,660. In the last 6 months, insiders have changed their ownership in shares of company stock by 12.30%.
1 out of 3 analysts covering the stock have rated it a Buy, while 2 have maintained a Hold recommendation on Ring Energy Inc.. 0 analysts has assigned a Sell rating on the REI stock. The 12-month mean consensus price target for the company’s shares has been set at $3.24.