Ring Energy Inc. [AMEX:REI] is seeing significant action in the Energy space. REI stock has price per sales of 0.36 and price per cash flow of 0.31. The company is also booking -1.14 earnings per share.
The tape is active for Ring Energy Inc. [REI] and the current price target sits at $1.46.
To add more color to this price target, REI’s high over the last year is $2.02 and the low is $1.00. Over the last two 52 weeks, the company is trading -40.43%, while the S&P 500 is trading 0.79%.
The Price is right
Holding a Market Cap of $54.65 million, Ring Energy Inc. has seen a trading range over the last year of $0.52-$3.31.
For the last five days, REI is up from its last closing price. The average shares trading hands each day is 1.11M.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for REI. When we apply the Elder Force Index to Ring Energy Inc., we are seeing an Elder Force Indicator number of 620645.08.
Recent Performance
The recent performance of the stock is another area that can tell traders how to proceed. REI is presenting an interesting case. This can be seen in the Forward P/E ratio, which currently stands at 44.21.
In the last quarter, REI made a profit of -156.85 million. Ring Energy Inc. also saw quarter revenue growth year over year of 63.00%.
Technical Analysis
Looking at popular technical indicators, the company’s 5-day moving average is 0.7394 compared to the 50-day moving average of 15.18%. So, traders might want to tread carefully if they are going to bid.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. REI currently holds a 9-day RSI of 72.40%, while 100-day RSI stands at 45.58%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. REI’s 9-day MACD is 0.0430 and the company’s 100-day MACD stands at -0.2808.
Inside Moves
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 17.77% by insiders and 63.36% by institutions. Regarding institutional holdings, Blackrock Inc. owns 8.99%, while the second top holder, Vanguard Group, Inc. (The), currently owns 5.87%.
Conclusion
Overall, the recommended rating for REI is Moderate Buy. Currently, the company has 4 analysts watching the stock, and the average quarterly earnings estimate is 0. Quarterly revenue estimates are averaging 27M with the high estimate reaching 28.21M and the low at 24.2M.
