Stock Traders Buy High Volume of Ring Energy Call Options (NYSEAMERICAN:REI)

Key Points

• Unusual options activity: Investors purchased 15,103 Ring Energy call options, approximately 835% above the average volume of 1,615 contracts.
• Stock and earnings: REI rose 1.9% to $1.35, while its latest quarterly results exceeded expectations with $0.10 in EPS versus the $0.07 consensus and revenue of $104.68 million.
• Analyst outlook remains cautious: Wall Street’s average rating is “Hold” with a $2.00 price target, despite one “Buy” rating; institutional investors own 77.14% of the company.

Ring Energy, Inc. (NYSEAMERICAN:REI - Get Free Report) was the recipient of some unusual options trading activity on Thursday. Investors purchased 15,103 call options on the company. This is an increase of approximately 835% compared to the average volume of 1,615 call options.

Ring Energy Trading Up 1.9%

NYSEAMERICAN:REI traded up $0.03 during midday trading on Thursday, hitting $1.35. 1,331,991 shares of the company traded hands, compared to its average volume of 4,646,979. The firm's fifty day moving average is $1.40 and its 200-day moving average is $1.36. The firm has a market capitalization of $353.00 million, a P/E ratio of -1.23, a P/E/G ratio of 0.29 and a beta of 0.98. The company has a current ratio of 0.54, a quick ratio of 0.49 and a debt-to-equity ratio of 0.48. Ring Energy has a 12-month low of $0.83 and a 12-month high of $2.00.

Ring Energy (NYSEAMERICAN:REI - Get Free Report) last issued 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. Ring Energy had a negative net margin of 68.02% and a positive return on equity of 5.55%. The company had revenue of $104.68 million for the quarter, compared to the consensus estimate of $93.29 million. On average, sell-side analysts predict that Ring Energy will post 0.11 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on REI. Zacks Research cut Ring Energy from a "strong-buy" rating to a "hold" rating in a research report on Friday, June 26th. Mizuho initiated coverage on Ring Energy in a research note on Wednesday, September 2nd. They issued a "neutral" rating and a $2.00 price target for the company. Finally, Bank of America initiated coverage on shares of Ring Energy in a report on Wednesday, July 15th. They issued a "buy" rating and a $2.00 target price on the stock. One analyst has rated the stock with a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $2.00.

Institutional Investors Weigh In On Ring Energy

Several large investors have recently modified their holdings of the business. DGS Capital Management LLC raised its stake in Ring Energy by 65.4% in the fourth quarter. DGS Capital Management LLC now owns 31,196 shares of the company's stock worth $27,000 after buying an additional 12,331 shares in the last quarter. Sigma Planning Corp purchased a new stake in shares of Ring Energy during the first quarter worth about $39,000. Barry Investment Advisors LLC grew its holdings in shares of Ring Energy by 100.0% during the first quarter. Barry Investment Advisors LLC now owns 30,000 shares of the company's stock valued at $46,000 after buying an additional 15,000 shares during the last quarter. The Manufacturers Life Insurance Company purchased a new stake in Ring Energy during the 2nd quarter valued at about $65,000. Finally, Amundi purchased a new position in Ring Energy during the 2nd quarter worth approximately $67,000. Institutional investors own 77.14% of the company's stock.

About Ring Energy

Ring Energy, Inc is an independent oil and gas exploration and production company headquartered in Midland, Texas. The company focuses on the acquisition, development, and operation of oil and natural gas properties, with an emphasis on producing assets and opportunities to expand reserves through development and strategic acquisitions.

Ring Energy's operations are concentrated in the Permian Basin, primarily in the Northwest Shelf region of West Texas and southeastern New Mexico. Its activities include drilling, completing, and operating oil and natural gas wells, as well as managing the associated gathering, processing, and transportation requirements for its production.

Founded in 2004, Ring Energy has grown through a combination of drilling programs and acquisitions of properties in the Permian Basin.

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