Is Now The Time To Buy Ring Energy Inc. (AMEX: REI) Stock?

Ring Energy Inc. (AMEX:REI) price closed higher on Friday, August 12, jumping 2.07% above its previous close.

A look at the daily price movement shows that the last close reads $2.90, with intraday deals fluctuated between $2.83 and $2.99. The company’s 5Y monthly beta was ticking 2.03 while its P/E ratio in the trailing 12-month period read 4.74. Taking into account the 52-week price action we note that the stock hit a 52-week high of $5.09 and 52-week low of $1.81. The stock added 26.50% on its value in the past month.

Ring Energy Inc., which has a market valuation of $311.01 million, is expected to release its quarterly earnings report Mar 14, 2022 – Mar 18, 2022. Analysts tracking REI have forecast the quarterly EPS to grow by 0.23 per share this quarter, while the same analysts predict the annual EPS to hit $0.73 for the year 2022 and up to $1.07 for 2023. In this case, analysts estimate an annual EPS growth of 135.50% for the year and 46.60% for the next year.

On average, analysts have forecast the company’s revenue for the quarter will hit $66.46 million, with the likely lows of $58.77 million and highs of $81.62 million. The average estimate suggests sales growth for the quarter will likely rise by 97.20% when compared to those recorded in the same quarter in the last financial year. Staying with the analyst view, there is a consensus estimate of $317.73 million for the company’s annual revenue in 2022. Per this projection, the revenue is forecast to grow 61.90% above that which the company brought in 2022.

Revisions to the company’s EPS highlights a short term direction of a stock’s price movement, which in the last 7 days came up with no upward and no downward reviews. On the technical perspective front, indicators give REI a short term outlook of 50% Sell on average. Looking at the stock’s medium term indicators we note that it is averaging as a 100% Sell, while an average of long term indicators are currently assigning the stock as 50% Sell.

Here is a look at the average analyst rating for the stock as represented on a scale of 1.00 to 5.00, with the extremes of 1.00 and 5.00 suggesting the stock is strong buy or strong sell respectively. Specifically, 3 analysts have assigned REI a recommendation rating as follows: 2 rate it as a Hold; 1 advise Buy while 0 analyst(s) assign an Overweight rating. 0 analyst(s) have tagged the Ring Energy Inc. (REI) stock as Underweight, with 0 recommending Sell. In general, analysts have rated the stock Overweight, a scenario likely to bolster investors out for an opportunity to add to their holdings of the company’s shares.

If we dive deeper into the stock’s performance we see the positive picture represented by the PEG ratio, currently standing at 0.13. The overview shows that REI’s price is at present 11.36% off the SMA20 and -5.63% from the SMA50. The Relative Strength Index (RSI) metric on the 14-day timeframe is pointing at 55.65, with weekly volatility standing at 7.35%. The indicator jumps to 7.86% when calculated based on the past 30 days. Ring Energy Inc. (AMEX:REI)’s beta value is holding at 1.96, while the average true range (ATR) indicator is currently reading 0.21.

Turning out attention to how the Ring Energy Inc. stock has performed in comparison to its peers in the industry, here’s what we find: REI’s stock is 2.07% on the day and 16.08% in the past 12 months, while Laredo Petroleum Inc. (LPI) traded -0.25% in the last session and was positioned 46.60% up on its price 12 months ago. Also, Mexco Energy Corporation (MXC) showed up trend of 4.76% while its price kept floating at 114.98% over the past year. As for Ring Energy Inc., the P/E ratio stands at 4.74 higher than that of Laredo Petroleum Inc.’s at 2.20. Elsewhere in the market, the S&P 500 Index has rallied 1.73% in last trading session, with the Dow Jones Industrial also saw a positive session on the day with 1.27%.

An analysis of the Ring Energy Inc. (AMEX:REI) stock in terms of its daily trading volume indicates that the 3-month average is 2.63 million. However, this figure increases on the past 10-day timeline to an average of 2.64 million.

Current records show that the company has 106.39M in outstanding shares. The insiders’ percentage holdings are 15.80% of outstanding shares while the percentage share held by institutions stands at 28.90%. The stats also highlight that short interest as of Jul 14, 2022, stood at 17.11 million shares, which puts the short ratio at the time at 5.59. From this we can glean that short interest is 15.95% of company’s current outstanding shares. Notably, we see that shares short in July rose slightly given the previous month’s figure stood at 16.32 million. But the 29.82% upside, the stock’s price has registered year-to-date as of last trading, will likely reignite investor interest given the prospect of it rallying even higher.

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