Warburg Pincus LLC Cuts Holdings in Ring Energy, Inc. $REI

Key Points

• Warburg Pincus LLC has reduced its stake in Ring Energy, Inc. by 18.5%, now owning 28,945,643 shares, which represents about 2.5% of its total holdings.
• Despite insider selling activity where Warburg Pincus sold over 2.4 million shares, insiders have also bought shares totaling 79,069 shares valued at $65,799 in the past three months.
• Alliance Global Partners has initiated coverage on Ring Energy with a Buy rating and a price target of $2.50, contributing to a general consensus rating of “Buy” for the company.

Warburg Pincus LLC cut its holdings in Ring Energy, Inc. (NYSEAMERICAN:REI - Free Report) by 18.5% during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 28,945,643 shares of the company's stock after selling 6,575,000 shares during the period. Ring Energy comprises approximately 2.5% of Warburg Pincus LLC's investment portfolio, making the stock its 5th biggest holding. Warburg Pincus LLC owned approximately 14.60% of Ring Energy worth $33,287,000 at the end of the most recent quarter.

A number of other large investors have also recently added to or reduced their stakes in REI. Jefferies Financial Group Inc. acquired a new stake in Ring Energy during the 1st quarter valued at $1,092,000. Millennium Management LLC increased its holdings in Ring Energy by 358.0% in the 4th quarter. Millennium Management LLC now owns 1,082,632 shares of the company's stock valued at $1,472,000 after buying an additional 846,241 shares during the period. Nuveen LLC bought a new stake in shares of Ring Energy during the 1st quarter valued at approximately $503,000. Connor Clark & Lunn Investment Management Ltd. grew its holdings in shares of Ring Energy by 47.8% during the 1st quarter. Connor Clark & Lunn Investment Management Ltd. now owns 613,311 shares of the company's stock valued at $705,000 after purchasing an additional 198,418 shares during the last quarter. Finally, Graham Capital Management L.P. boosted its position in Ring Energy by 162.5% during the 4th quarter. Graham Capital Management L.P. now owns 256,122 shares of the company's stock worth $348,000 after buying an additional 158,548 shares during the period. Institutional investors and hedge funds own 77.14% of the company's stock.

Ring Energy Price Performance

Shares of REI stock traded up $0.01 during trading hours on Thursday, hitting $0.99. 3,708,925 shares of the company's stock were exchanged, compared to its average volume of 2,842,539. The company has a market capitalization of $205.47 million, a PE ratio of 2.84 and a beta of 1.03. Ring Energy, Inc. has a 12-month low of $0.72 and a 12-month high of $1.81. The business's 50 day simple moving average is $0.85 and its 200-day simple moving average is $0.95. The company has a current ratio of 0.63, a quick ratio of 0.58 and a debt-to-equity ratio of 0.50.

Ring Energy Dividend Announcement

The company also recently announced a jun 25 dividend, which was paid on Tuesday, July 8th. Stockholders of record on Monday, June 30th were issued a $0.0965 dividend.

Insider Activity

In other news, major shareholder Warburg Pincus (E&P) Xii Llc sold 2,486,027 shares of the firm's stock in a transaction that occurred on Friday, June 13th. The shares were sold at an average price of $0.92, for a total value of $2,287,144.84. Following the transaction, the insider owned 20,509,300 shares in the company, valued at approximately $18,868,556. This trade represents a 10.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. In the last quarter, insiders have purchased 79,069 shares of company stock valued at $65,799 and have sold 4,344,699 shares valued at $3,778,606. Corporate insiders own 3.00% of the company's stock.

Analyst Ratings Changes

Several equities research analysts recently commented on REI shares. Alliance Global Partners started coverage on shares of Ring Energy in a research report on Friday, July 11th. They set a "buy" rating and a $2.50 target price on the stock. Zacks Research upgraded shares of Ring Energy from a "strong sell" rating to a "hold" rating in a research report on Friday, August 29th. One analyst has rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, Ring Energy has a consensus rating of "Moderate Buy" and a consensus target price of $2.50.

About Ring Energy

Ring Energy, Inc, an independent oil and natural gas company, engages in the acquisition, exploration, development, and production of oil and natural gas properties. The company has interests in 56,711 net developed acres and 2,668 net undeveloped acres in Andrews, Gaines, Crane, Ector, Winkler, and Ward counties, Texas; and 8,751 net developed acres and 12,405 net undeveloped acres in Yoakum County, Texas and Lea County, New Mexico.