Ring Energy, Inc. (REI): A Perfect Mix Of Income And Growth Investment

The price of Ring Energy, Inc. (NYSE:REI) stock ended January 13, 2020 trading at $2.64 which saw uptrend of 0% since the beginning of 2020. For most investors, the -8.01% rally in the share price could have prompted them to sell the stock, but doing that would be a mistake as it would be taking into consideration only the short-term performance of the stock.

A look at the REI stock today shows that it has lost -57.42% of its value over the past one year, which has led to some investors becoming concerned about the short-term performance of Ring Energy, Inc. (NYSE:REI). If we turn to the stock analysts in general, they revealed that most of them are still bullish about the chances of the shares. The consensus rating from analysts for Ring Energy, Inc. (REI) is 2.3 which is a ,neutral rating. Over the past week, the stock has been rated as a Buy 4 times while it has been rated as a Hold 2 times. The 52-week high price for REI is $6.59 which is attained on March 05 while its 52-week low currently stands at $1.23 and was reached on August 30. At the moment, the stock is trading $-0.29 below its YTD moving average set at $2.93.

Moving on, Ring Energy, Inc. (REI) last released its earnings for the September 2020 quarter of the fiscal year. The company performed decently over the past three months, with its earnings up 22% year-over-year at $0.11. The company brought a surprise of 22 as analysts were predicting $0.09 per share. The revenue generated by Ring Energy, Inc. in the September 2020 quarter surged by 54% to reach $50.34 million. This is high compared to the $32.69 million it recorded in the same quarter last year. To see what traders should watch in its December 2019 financial results, analysts have consensus earnings per share of $0.11 which is higher than the $0.07 recorded in the same quarter a year ago. Over the next 12 months, the earnings per share are expected to move by 3.01%. If it achieves that, then the company firmly believes that its long-term annual earnings growth rate target set at 37 % could be achieved. The company has also recorded a revenue of $171 million over the past 12 months.

In order to determine if the stock is worthy of your patience, you should know that Ring Energy, Inc. (NYSE:REI) is now trading at 6.84X the earnings per share recorded over the past 12 months. This is a downtrend compared to the readings of the sector which is 18X while the industry average stands at 15.44X. The most popular way to value a stock is to look at its historic Price-to-Earnings (P/E) ratio with the help of its earnings report over the past 12 months. Ring Energy, Inc. was able to achieve an EPS of $0.39 during the last four quarters. The P/E ratio is widely known due to the fact that it is widely used, simple, effective, and, tautologically.

On Monday, January 13 of 2020, the 14-day Absolute ATR (Average True Range) for REI moved by $0.22. Over the past seven days, the stock’s average daily volatility stood at 9.02%. A stock with a low volatility is usually a good one as it means that investors are very confident in the stock. Ring Energy, Inc.’s trading volume has recently moved to 1.11 million, which is compared with the average daily volume of 1.19 million shares.

The daily chart for REI, points out that the company has recorded -19.51% losses over the past six months. However, it is still 114.63% higher than its most recent low trading price. The performance of the stock over the past five days shows that it is down -18.27% though it is -1.8% below its three-week moving average. It is worthy to know that price action is not always clear. There are times when a stock will undergo some negatives, trade erratically within some range or even act very unpredictable. When that happens, then making use of moving averages makes the pattern clearer for traders. Comparing to 50-day SMA, the price of the stock has surged by 16.59% while it is down -8.27% against the 200-day SMA. This is usually seen as the last support line for a stock, as a move downward could signal a bearish trend or market. The daily chart of REI reveals that it has gained some grounds as it ended Monday with a 15.28% rise over the past 30 days.