Ring Energy, Inc. (NYSEAMERICAN:REI) Short Interest Up 95.8% in June

Key Points

• Short interest in Ring Energy surged 95.8% in June, reaching 9.2 million shares, or 4.6% of the float. The stock’s days-to-cover ratio stood at 1.2 days based on average volume.
• Top executives bought shares during the month: EVP Sundip Singh Johl purchased 231,000 shares and CEO Paul D. Mckinney bought 50,000 shares, signaling insider confidence.
• The stock traded lower and analysts remain mixed, with REI down 1.6% to $1.20. Zacks cut its rating to hold, while Bank of America initiated coverage with a buy rating and a $2.00 target price.

Ring Energy, Inc. (NYSEAMERICAN:REI - Get Free Report) was the recipient of a significant increase in short interest in June. As of June 30th, there was short interest totaling 9,218,172 shares, an increase of 95.8% from the June 15th total of 4,708,138 shares. Currently, 4.6% of the company's stock are short sold. Based on an average trading volume of 7,765,434 shares, the days-to-cover ratio is currently 1.2 days.

Insider Buying and Selling at Ring Energy

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

Hedge Funds Weigh In On Ring Energy

Several institutional investors and hedge funds have recently added to or reduced their stakes in REI. Arrowstreet Capital Limited Partnership increased its stake in shares of Ring Energy by 74.9% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,007,921 shares of the company's stock worth $1,542,000 after acquiring an additional 431,549 shares in the last quarter. Sigma Planning Corp purchased a new position in Ring Energy during the 1st quarter valued at about $39,000. R Squared Ltd boosted its stake in Ring Energy by 106.5% during the first quarter. R Squared Ltd now owns 51,950 shares of the company's stock worth $79,000 after acquiring an additional 26,798 shares in the last quarter. Barry Investment Advisors LLC boosted its stake in Ring Energy by 100.0% during the first quarter. Barry Investment Advisors LLC now owns 30,000 shares of the company's stock worth $46,000 after acquiring an additional 15,000 shares in the last quarter. Finally, Ritholtz Wealth Management purchased a new stake in Ring Energy in the first quarter worth about $248,000. Hedge funds and other institutional investors own 77.14% of the company's stock.

Ring Energy Stock Down 1.6%

REI traded down $0.02 on Thursday, hitting $1.20. The company had a trading volume of 4,092,976 shares, compared to its average volume of 5,175,024. Ring Energy has a 52-week low of $0.72 and a 52-week high of $2.00. The stock has a fifty day simple moving average of $1.26 and a 200-day simple moving average of $1.29. The company has a debt-to-equity ratio of 0.69, a current ratio of 0.40 and a quick ratio of 0.36. The firm has a market capitalization of $251.29 million, a P/E ratio of -0.94 and a beta of 0.80.

Ring Energy (NYSEAMERICAN:REI - Get Free Report) last announced its earnings results on Wednesday, May 6th. The company reported $0.04 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.03 by $0.01. Ring Energy had a positive return on equity of 5.10% and a negative net margin of 87.63%.The firm had revenue of $73.67 million during the quarter, compared to analyst estimates of $69.90 million. As a group, equities analysts expect that Ring Energy will post 0.11 EPS for the current fiscal year.

Analysts Set New Price Targets

REI has been the subject of a number of analyst reports. Zacks Research lowered Ring Energy from a "strong-buy" rating to a "hold" rating in a report on Friday, June 26th. Bank of America assumed coverage on shares of Ring Energy in a research report on Wednesday. They issued a "buy" rating and a $2.00 target price for the company. One analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target 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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