Earthstone Energy Inc. (NYSE: ESTE) has seen a decline in its stock price by -0.87 in relation to its previous close of 19.46. However, the company has experienced a -6.50% decline in its stock price over the last five trading sessions. Market Watch reported 2023-08-21 that Permian Resources Corp.’s planned $4.5 billion acquisition of Earthstone Energy Inc. will bring scale to the Midland, Texas-based oil and natural-gas company, analysts say.
Is It Worth Investing in Earthstone Energy Inc. (NYSE: ESTE) Right Now?
The price-to-earnings ratio for Earthstone Energy Inc. (NYSE: ESTE) is 4.52x, which is above its average ratio. Moreover, the 36-month beta value for ESTE is 2.10. Analysts have varying opinions on the stock, with 7 analysts rating it as a “buy,” 0 as “overweight,” 3 as “hold,” and 0 as “sell.”
The average price recommended by analysts for Earthstone Energy Inc. (ESTE) is $24.00, which is $6.14 above the current market price. The public float for ESTE is 74.58M and currently, short sellers hold a 4.67% of that float. On September 20, 2023, ESTE’s average trading volume was 1.85M shares.
ESTE’s Market Performance
ESTE stock saw an increase of -6.50% in the past week, with a monthly gain of 18.85% and a quarterly increase of 41.73%. The volatility ratio for the week is 3.44%, and the volatility levels for the last 30 days are 3.53% for Earthstone Energy Inc. (ESTE). The simple moving average for the last 20 days is -3.45% for ESTE stock, with a simple moving average of 33.77% for the last 200 days.
Analysts’ Opinion of ESTE
Many brokerage firms have already submitted their reports for ESTE stocks, with CapitalOne repeating the rating for ESTE by listing it as a “Overweight.” The predicted price for ESTE in the upcoming period, according to CapitalOne is $27 based on the research report published on July 19, 2023 of the current year 2023.
ESTE Trading at 11.48% from the 50-Day Moving Average
After a stumble in the market that brought ESTE to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -12.24% of loss for the given period.
Volatility was left at 3.53%, however, over the last 30 days, the volatility rate increased by 3.44%, as shares surge +1.85% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +32.67% upper at present.
During the last 5 trading sessions, ESTE fell by -6.50%, which changed the moving average for the period of 200-days by +21.78% in comparison to the 20-day moving average, which settled at $20.00. In addition, Earthstone Energy Inc. saw 35.56% in overturn over a single year, with a tendency to cut further gains.
Reports are indicating that there were more than several insider trading activities at ESTE starting from WP Energy Chisholm Holdings, L, who sale 5,000,000 shares at the price of $14.52 back on Aug 01. After this action, WP Energy Chisholm Holdings, L now owns 7,868,234 shares of Earthstone Energy Inc., valued at $72,600,000 using the latest closing price.
Warburg Pincus Partners II (US, the 10% Owner of Earthstone Energy Inc., sale 5,000,000 shares at $14.52 during a trade that took place back on Aug 01, which means that Warburg Pincus Partners II (US is holding 7,868,234 shares at $72,600,000 based on the most recent closing price.
Stock Fundamentals for ESTE
Current profitability levels for the company are sitting at:
- +56.66 for the present operating margin
- +61.03 for the gross margin
The net margin for Earthstone Energy Inc. stands at +26.69. The total capital return value is set at 40.42, while invested capital returns managed to touch 25.29. Equity return is now at value 27.70, with 11.50 for asset returns.
Based on Earthstone Energy Inc. (ESTE), the company’s capital structure generated 64.68 points at debt to equity in total, while total debt to capital is 39.28. Total debt to assets is 26.93, with long-term debt to equity ratio resting at 64.58. Finally, the long-term debt to capital ratio is 39.21.
When we switch over and look at the enterprise to sales, we see a ratio of 1.73, with the company’s debt to enterprise value settled at 0.34. The receivables turnover for the company is 13.58 and the total asset turnover is 0.62. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.65.
To wrap up, the performance of Earthstone Energy Inc. (ESTE) has been better in recent times. The stock has received a bullish of “buy” and “hold” ratings from analysts. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.