Is Resolute Energy Corporation (REN) Running Out of Gas?

Resolute Energy Corporation (REN) shares saw a recent bid of $38.27 and 887.43TH shares have exchanged hands in the recent trading session, yielding a -8.62% decline over the past week. The stock price increased 3.40% or $-1.26 versus $37.01 at the end of the prior session. This change led market cap to move at $851.89M, putting the price -22.12% below the 52-week high and 1286.59% above the 52-week low. The company’s stock has a normal trading capacity of 699.07K shares while the relative volume is 1.27.

To stay one step ahead we extended our research by comparing different price targets. The stock notched a 12-month high of $54.56 while $63.00 target is by far the most aggressive out of analysts who are currently evaluating the company, $8.44 higher than the next highest 52-week price estimate. The lowest 12-month price target for the shares is $40.00, which would be an increase of about 5% of its current value. The mean target of $55.00 should be compared with the price when the stock was languishing around $2.76 a share. And it remains to be seen which target price REN can achieve without sacrificing much as the company is holding a 1025.59% gain for the past twelve months.

By historical standards, Resolute Energy Corporation remains a cheap stock. The company’s current price-earnings ratio amounts above the average P/E ratio of 20.97 times earnings. For now, Resolute Energy Corporation is the toast of Wall Street as its ABR stands at 2.00 with 2 out of 9 analysts rating the stock a buy. Over the short term, some market observers may have noticed that Resolute Energy Corporation has a 19.89% short float with 15 days to cover. It becomes significant when you consider how many shares are shorted versus the average daily volume, means how many days to cover those short shares at that volume. Resolute Energy Corporation has far performed well this year, with the share price down -7.09% since January. Over the past 2 quarters, the stock is up 13.43%, compared with a gain of nearly 0.21% for 3 months and about -5.81% for the past 30 days.

Last time, the company failed Wall Street by reporting EPS of $0.01, smashing the consensus of $0.27 per share. Revenue for the quarter also did not kill consensus, coming in at $65.23M, compared to the consensus of 71.31M. Nonetheless, from here on out, earnings per share forecasts for the current quarter are $0.45. The company is expected to report EPS as high as $0.62 and as low as $0.26 per share. Similarly, full-year EPS forecasts have ranged between $2.63 and $2.67. The mean EPS estimate is $2.65. On the other side, sales forecasts for the current quarter are $85.1M. The stock is expected to report revenue as high as $93.6M and as low as $82M per share. Similarly, full-year sales forecasts have ranged between $352.6M and $416.2M. The mean revenue estimate is $376.68M.

Over the last 5 years, Resolute Energy Corporation has averaged a -44.80% YoY EPS growth rate and a -6.20% revenue growth rate. Analysts are expecting EPS growth rates to be at 79.30% this quarter and EPS estimate for next year reflect 131.76% growth rate.

Sell-side analysts also have something to say about this company. SunTrust analysts stated on 01/06/2017 that they launched coverage on this stock with Buy rating. CapitalOne raised its rating on Resolute Energy Corporation to Overweight on 19/12/2016 in a reversal from its prior Equal Weight rating. KLR Group analysts stated on 06/12/2016 that they launched coverage on this stock with Buy rating. Wunderlich analysts stated on 06/10/2016 that they maintained their Buy rating.

Is Resolute Energy Corporation (REN) Running Out of Gas? was last modified: June 14th, 2017 by Tiller Blare
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