REI stock: buy or sell?

REI stock price: $1.94 -6.73% At close on November 15th, 2019

Updated on:
November 15th, 2019

1

Ring Energy ended yesterday at $1.94 and collapsed a bloodcurdling -6.73%. On Nov 7th REI boosted an extraordinary 20.60%. With Friday it's been 5 red days in a row.

Ring Energy, Inc. acquires, explores for, develops, and produces oil and natural gas in Texas and Kansas, the United States.

Should I buy REI stock?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. Following a trading plan helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, Ring Energy stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Ring Energy stock a buy?

Financial institutions and banks publish stock ratings everyday. At Stocks2.com, we detected 2 ratings published for REI stock in the last month.

Is REI a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-26LADENBURG THALM/SH SHBuyNeutral
2019-8-22Imperial Capitaln/aOutperform

REI stock analysis

Daily outlook

Shares of Ring Energy ended yesterday at $1.94 and collapsed a bloodcurdling -6.73%.

Ring Energy closed yesterday at $1.94 and collapsed a bloodcurdling -6.73%. From a daily perspective, REI is in a short term uptrend after plotting its last bottom ($1.60, on Oct/31) higher than the previous bottom, and its last top ($2.54, on Monday) also over the previous top. Now trading in between its last bottom and last top REI might consolidate in a plain range, waiting to break out over $2.54 or down under $1.60. In this session, Ring Energy stock crossed down the SMA100d line. If you are using SMA100d line as stop loss trigger, double check your position in this stock.

REI stock chart (daily)

Weekly outlook

After climbing for 4 weeks, this week Ring Energy collapsed a chilling -18.49%, closing at $1.94. Last week REI rocketed an exceptional 26.47% in just one week.

This week, Ring Energy stock crossed down the significant level of the 20-weeks moving average.

REI stock chart (weekly)

REI stock price history

REI IPO was on April 16th, 2007 at $8.10 per share1. Since then, REI stock declined a -76.00%, with a yearly average of -6.30%.

1: Adjusted price after possible price splits or reverse-splits.

REI stock historical price chart

REI stock reached 52-week highs on November at $7.76, and all-time highs 2014-06-05 with a price of 20.61.

REI stock price target is $3.50

How much a stock will be priced tomorrow or next week is quite unpredictable However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. We detected 2 price targets for REI stock posted in the last 30 days:
REI stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-26LADENBURG THALM/SH SHDowngrades$5.00$3.00-40%
2019-8-22Imperial CapitalLowers Target$6.00$4.00-33.3%
(in average)$5.50$3.50-36.0%
Moving in a range from $4.00 and $3.00, the price prediction for Ring Energy stock is $3.50. In average, analysts' outlook on REI price target is negative, reducing the target by a -36.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

After publishing its last earnings report on February, Ring Energy . Unfortunately, reported EPS is not yet available in our database.
REI earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/an/an/a
2017-Q2-n/an/an/a
2017-Q3-n/an/an/a
2017-Q42018-03-150.090.090.0%
2018-Q12018-05-080.150.11-26.7%
2018-Q22018-08-080.130.09-30.8%
2018-Q32018-11-060.110.1427.3%
2018-Q42019-02-26n/a0.07n/a
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

Compared to 2017, last anual turnover report draw an extraordinary gain of 80.01% to $120.07 million dollars. Nevertheless, its profit margin (compared to sales) gained to 7.50%, that is $9.00 million.

REI annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$10 M-$-0.45 M-4.4%-
2014$38 M269.08%$8.42 M22.1%-1,962.08%
2015$31 M-18.58%$-9.05 M-29.2%-207.51%
2016$31 M-0.53%$-37.64 M-122.0%315.76%
2017$67 M116.21%$1.75 M2.6%-104.66%
2018$120 M80.01%$9.00 M7.5%413.14%

Quarterly financial results

Ring Energy reported $27.56 million in sales for 2018-Q4, a -15.68% decline compared to previous quarter. Reported quarter income marked $-7.08 million with a profit margin of -25.69%. Profit margin collapsed a -43.10% compared to previous quarter when profit margin was 17.42%. When comparing sales to same quarter last year, Ring Energy sales marked a dazzling growth and rocketed a 18.25%.
REI quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$12 M-$1.28 M10.5%-
2017-Q2$15 M18.46%$1.91 M13.2%49.22%
2017-Q3$17 M14.79%$3.07 M18.5%60.93%
2017-Q4$23 M40.04%$-4.51 M-19.3%-246.72%
2018-Q1$30 M28.24%$5.67 M19.0%-225.63%
2018-Q2$30 M0.11%$4.72 M15.8%-16.69%
2018-Q3$33 M9.23%$5.69 M17.4%20.63%
2018-Q4$28 M-15.68%$-7.08 M-25.7%-224.34%

Ring Energy ownership

When you are planning to buy a stock, it's worth to overview its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Ring Energy, 6.14% of all outstanding shares are owned by its staff.

Bearish positions for REI stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Ring Energy:

REIAREXCXOLPIMXC
Market cap$131.6 M$3.7 M$14.7 B$566.7 M$8.1 M
Total shares67.8 M93.7 M201.0 M237.1 M2.0 M
Float shares58.4 M41.8 M197.3 M173.3 M0.8 M
  - Institutional holdings (%)86.2%70.4%96.2%100.7%5.0%
  - Insider holdings (%)6.1%4.7%1.1%2.4%58.7%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

REI summary

Friday, November 15th, 2019
Open$2.11
Close$1.94
Day range$1.94 - $2.12
Previous close$2.08
Session gain-6.73%
Average true range$0.20
50d mov avg$1.72
100d mov avg$2.03
200d mov avg$3.56
Daily patternlt06a
Weekly pattern lb06a

Ring Energy performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. In the following table, we compare Ring Energy performance to Approach Resources, Concho Resources, Laredo Petroleum and Mexco Energy:
Stock3m6m12m
REIRing Energy10.23%-56.01%-73.39%
AREXApproach Resource...-78.95%-84.62%-97.08%
CXOConcho Resources2.31%-34.97%-46.82%
LPILaredo Petroleum-15.25%-28.44%-54.65%
MXCMexco Energy4.77%-2.47%-1.50%

Ring Energy competitors

We chose a few stocks to conform a list of Ring Energy competitors to examine if you are interested in investing in REI: