Analyzing the Price-to-Earnings Ratio of Ring Energy Inc (REI)

The price-to-earnings ratio for Ring Energy Inc (AMEX: REI) is above average at 3.70x. The 36-month beta value for REI is also noteworthy at 1.80. There are mixed opinions on the stock, with 8 analysts rating it as a “buy,” 2 rating it as “overweight,” 0 rating it as “hold,” and 0 rating it as “sell.”

The public float for REI is 124.77M, and at present, short sellers hold a 10.69% of that float. The average trading volume of REI on April 03, 2024 was 1.91M shares.

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REI) stock’s latest price update

The stock price of Ring Energy Inc (AMEX: REI) has jumped by 0.51 compared to previous close of 1.98. Despite this, the company has seen a gain of 1.02% in its stock price over the last five trading days. Seeking Alpha reported 2024-04-02 that Ring is projected to generate $67 million in free cash flow in 2024 at current strip. Ring has around 45% of its oil production hedged, and that is partially reducing its benefit from low-$80s oil. Ring’s Q4 2023 results were largely in-line with my expectations.

REI’s Market Performance

REI’s stock has risen by 1.02% in the past week, with a monthly rise of 35.37% and a quarterly rise of 36.30%. The volatility ratio for the week is 4.25% while the volatility levels for the last 30 days are 5.21% for Ring Energy Inc The simple moving average for the last 20 days is 13.81% for REI’s stock, with a simple moving average of 15.74% for the last 200 days.

Analysts’ Opinion of REI

Many brokerage firms have already submitted their reports for REI stocks, with ROTH Capital repeating the rating for REI by listing it as a “Neutral.” The predicted price for REI in the upcoming period, according to ROTH Capital is $7.50 based on the research report published on August 01, 2022 of the previous year 2022.

ROTH Capital, on the other hand, stated in their research note that they expect to see REI reach a price target of $4.75. The rating they have provided for REI stocks is “Buy” according to the report published on October 14th, 2021.

REI Trading at 31.08% from the 50-Day Moving Average

After a stumble in the market that brought REI to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -18.11% of loss for the given period.

Volatility was left at 5.21%, however, over the last 30 days, the volatility rate increased by 4.25%, as shares surge +39.16% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +50.76% upper at present.

During the last 5 trading sessions, REI rose by +1.02%, which changed the moving average for the period of 200-days by +11.17% in comparison to the 20-day moving average, which settled at $1.7765. In addition, Ring Energy Inc saw 36.30% in overturn over a single year, with a tendency to cut further gains.

Insider Trading

Reports are indicating that there were more than several insider trading activities at REI starting from CRUM JOHN A, who purchase 50,000 shares at the price of $1.67 back on Dec 01 ’23. After this action, CRUM JOHN A now owns 355,094 shares of Ring Energy Inc, valued at $83,700 using the latest closing price.

McKinney Paul D., the CEO and Chairman of the Board of Ring Energy Inc, purchase 50,000 shares at $1.64 during a trade that took place back on Nov 15 ’23, which means that McKinney Paul D. is holding 1,318,231 shares at $82,000 based on the most recent closing price.

Stock Fundamentals for REI

Current profitability levels for the company are sitting at:

  • 0.4 for the present operating margin
  • 0.67 for the gross margin

The net margin for Ring Energy Inc stands at 0.29. The total capital return value is set at 0.11. Equity return is now at value 14.49, with 7.46 for asset returns.

Based on Ring Energy Inc (REI), the company’s capital structure generated 0.35 points at debt to capital in total, while cash flow to debt ratio is standing at 0.46. The debt to equity ratio resting at 0.54. The interest coverage ratio of the stock is 6.89.

Currently, EBITDA for the company is 235.82 million with net debt to EBITDA at 2.39. When we switch over and look at the enterprise to sales, we see a ratio of 2.28. The receivables turnover for the company is 8.72for trailing twelve months and the total asset turnover is 0.24. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.49.

Conclusion

In summary, Ring Energy Inc (REI) has had a better performance as of late. Analysts have bullish opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.

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