In a report released today, Jeff Grampp from Northland Securities reiterated a Buy rating on Ring Energy (REI), with a price target of $4. The company’s shares closed yesterday at $2.20.
“We reiterate our Outperform rating on REI but decrease our PT from $6 to $4 as we update estimates to reflect the lower growth trajectory for the company as it manages towards a FCF+ development program. We think FCF+ is achievable in 2020 but with modest growth in the single digit range. This strategy should allow it to improve liquidity through paying down debt and also note management continues to assess non-core asset sales. In-Line: REI reported 2Q19 Adjusted EBITDA of $33MM, slightly above consensus of $31MM and in-line with our estimate of $34MM. Production of 10,860 BOEPD (90% oil) was slightly higher than the 10,725 BOEPD pre-reported last month.”
According to TipRanks.com, Grampp has currently no stars on a ranking scale of 0-5 stars, with an average return of -16.0% and a 21.6% success rate. Grampp covers the Basic Materials sector, focusing on stocks such as Penn Virginia Corporation, Sundance Energy Australia, and SilverBow Resources Inc.
Currently, the analyst consensus on Ring Energy is a Moderate Buy with an average price target of $6.75.
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Based on Ring Energy’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $11.09 million. In comparison, last year the company had a net profit of $4.72 million.
Based on the recent corporate insider activity of 23 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of REI in relation to earlier this year.
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Ring Energy, Inc. is an oil and gas exploration company which engages in oil and natural gas acquisition, exploration, development and production activities. The firm’s areas of operation situated in the Permian Basin; the Central Basin Platform and the Delaware Basin.