Ring Energy Target of Unusually Large Options Trading (NYSEAMERICAN:REI)

Key Points

• Unusual options activity: Investors purchased 10,351 Ring Energy call options, 417% above the average volume of 2,001 contracts.
• Insider buying: CEO Paul McKinney bought 50,000 shares for $59,500, while EVP Sundip Singh Johl acquired 231,000 shares for $279,510. Insiders collectively own 3.50% of the company.
• Stock and outlook: REI shares rose 1.7% to $1.52 after the company beat quarterly earnings and revenue estimates. Analysts maintain a consensus “Hold” rating with a $2.00 price target.

Ring Energy, Inc. (NYSEAMERICAN:REI - Get Free Report) was the target of some unusual options trading on Tuesday. Investors acquired 10,351 call options on the company. This is an increase of 417% compared to the average volume of 2,001 call options.

Insider Activity

In other Ring Energy news, CEO Paul D. Mckinney bought 50,000 shares of the firm's stock in a transaction dated Monday, June 15th. The shares were purchased at an average price of $1.19 per share, for a total transaction of $59,500.00. Following the transaction, the chief executive officer directly owned 4,158,463 shares of the company's stock, valued at approximately $4,948,570.97. This represents a 1.22% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, EVP Sundip Singh Johl acquired 231,000 shares of the firm's stock in a transaction on Monday, June 15th. The shares were bought at an average cost of $1.21 per share, for a total transaction of $279,510.00. Following the completion of the acquisition, the executive vice president owned 548,460 shares of the company's stock, valued at approximately $663,636.60. This represents a 72.77% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 3.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On Ring Energy

A number of large investors have recently made changes to their positions in REI. Centiva Capital LP acquired a new stake in shares of Ring Energy during the 3rd quarter valued at approximately $26,000. DGS Capital Management LLC increased its position in shares of Ring Energy by 65.4% during the 4th quarter. DGS Capital Management LLC now owns 31,196 shares of the company's stock valued at $27,000 after purchasing an additional 12,331 shares during the period. HRT Financial LP purchased a new stake in Ring Energy during the fourth quarter valued at about $31,000. Jump Financial LLC acquired a new stake in shares of Ring Energy in the second quarter worth $31,000. Finally, Jefferies Financial Group Inc. grew its position in Ring Energy by 90.0% in the fourth quarter. Jefferies Financial Group Inc. now owns 36,861 shares of the company's stock worth $32,000 after acquiring an additional 17,461 shares in the last quarter. Hedge funds and other institutional investors own 77.14% of the company's stock.

Ring Energy Trading Up 1.7%

Shares of REI stock traded up $0.03 during trading on Tuesday, hitting $1.52. 2,128,821 shares of the stock traded hands, compared to its average volume of 4,774,432. The firm has a market capitalization of $397.29 million, a P/E ratio of -1.39, a price-to-earnings-growth ratio of 0.32 and a beta of 0.83. Ring Energy has a 52-week low of $0.83 and a 52-week high of $2.00. The company has a debt-to-equity ratio of 0.48, a current ratio of 0.54 and a quick ratio of 0.49. The firm's fifty day moving average price is $1.30 and its 200-day moving average price is $1.37.

Ring Energy (NYSEAMERICAN:REI - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $0.10 EPS for the quarter, beating the consensus estimate of $0.07 by $0.03. The business had revenue of $104.68 million for the quarter, compared to analyst estimates of $93.29 million. Ring Energy had a positive return on equity of 5.55% and a negative net margin of 68.02%. As a group, research analysts forecast that Ring Energy will post 0.11 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

A number of equities analysts have commented on the company. Zacks Research cut Ring Energy from a "strong-buy" rating to a "hold" rating in a report on Friday, June 26th. Bank of America assumed coverage on Ring Energy in a research note on Wednesday, July 15th. They issued a "buy" rating and a $2.00 price target on the stock. Finally, Mizuho started coverage on Ring Energy in a research note on Wednesday, September 2nd. They issued a "neutral" rating and a $2.00 price objective for the company. One analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $2.00.

Ring Energy Company Profile

Ring Energy, Inc is an independent oil and natural gas exploration and production company focused on the development, acquisition and operation of upstream assets in the United States. Headquartered in Odessa, Texas, the company concentrates its activities on onshore hydrocarbon plays, where it seeks to optimize production through technical innovation, cost management and disciplined capital allocation. Ring Energy trades on the NYSE American under the ticker symbol REI.

The company's core operations are centered in the Permian Basin, one of North America's most prolific oil-producing regions.

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