Gastar Exploration Inc. (GST): Start Paying Attention to Revised Ratings

Gastar Exploration Inc. (GST) shares saw a recent bid of $1.00 and 2.85M shares have exchanged hands in the recent trading session, yielding a -4.76% decline over the past week. The stock price decreased -5.66% or $0.06 versus $1.06 at the end of the prior session. This change led market cap to move at $213.90M, putting the price -54.34% below the 52-week high and 25.00% above the 52-week low. The company’s stock has a normal trading capacity of 1.77M shares while the relative volume is 1.61.

To stay one step ahead we extended our research by comparing different price targets. The stock notched a 12-month high of $2.30 while $4.00 target is by far the most aggressive out of analysts who are currently evaluating the company, $1.7 higher than the next highest 52-week price estimate. The lowest 12-month price target for the shares is $1.25, which would be an increase of about 25% of its current value. The mean target of $1.75 should be compared with the price when the stock was languishing around $0.80 a share. And it remains to be seen which target price GST can achieve without sacrificing much as the company is holding a 12.36% gain for the past twelve months.

By historical standards, Gastar Exploration Inc. remains a cheap stock. The company’s current price-earnings ratio amounts above the average P/E ratio of 21.03 times earnings. For now, Gastar Exploration Inc. is the toast of Wall Street as its ABR stands at 2.60 with 0 out of 8 analysts rating the stock a buy. Over the short term, some market observers may have noticed that Gastar Exploration Inc. has a 5.34% 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. Gastar Exploration Inc. has far performed well this year, with the share price down -35.48% since January. Over the past 2 quarters, the stock is down -21.26%, compared with a fall of nearly -27.01% for 3 months and about -6.54% for the past 30 days.

Last time, the company failed Wall Street by reporting EPS of $-0.06, smashing the consensus of $-0.05 per share. Revenue for the quarter also killed consensus, coming in at $18.67M, compared to the consensus of 17.42M. Nonetheless, from here on out, earnings per share forecasts for the current quarter are $-0.04. The company is expected to report EPS as high as $-0.02 and as low as $-0.05 per share. Similarly, full-year EPS forecasts have ranged between $-0.19 and $-0.09. The mean EPS estimate is $-0.14. On the other side, sales forecasts for the current quarter are $19.94M. The stock is expected to report revenue as high as $21.19M and as low as $18.6M per share. Similarly, full-year sales forecasts have ranged between $77.67M and $88.05M. The mean revenue estimate is $83.66M.

Over the last 5 years, Gastar Exploration Inc. has a 7.70% revenue growth rate. Analysts are expecting EPS growth rates to be at 84.80% this quarter and EPS estimate for next year reflect 28.60% growth rate.

Sell-side analysts also have something to say about this company. Williams Capital Group had a markedly different take on 17/02/2017, proposing that Gastar Exploration Inc. is now considered Hold versus prior Buy rating. Imperial Capital analysts stated on 21/10/2016 that they maintained their Outperform rating. FBR & Co. had a markedly different take on 21/10/2016, proposing that Gastar Exploration Inc. is now considered Mkt Perform versus prior Outperform rating. Williams Capital Group raised its rating on Gastar Exploration Inc. to Buy on 20/10/2016 in a reversal from its prior Hold rating.

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