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

Key Points

• Ring Energy options activity surged: Investors traded 10,025 call options, roughly 427% above the stock’s average daily call volume.
• Shares rose slightly to $1.41, while the company’s latest quarterly results exceeded expectations, reporting $0.10 in earnings per share and $104.68 million in revenue.
• Analyst sentiment is cautiously positive, with a consensus “Moderate Buy” rating and a $2.00 price target; company executives also recently increased their holdings through share purchases.

Ring Energy, Inc. (NYSEAMERICAN:REI - Get Free Report) saw unusually large options trading on Tuesday. Stock investors acquired 10,025 call options on the stock. This is an increase of approximately 427% compared to the average daily volume of 1,901 call options.

Ring Energy Stock Performance

Shares of NYSEAMERICAN:REI traded up $0.01 during trading on Tuesday, hitting $1.41. 1,561,671 shares of the stock were exchanged, compared to its average volume of 4,910,778. Ring Energy has a 1-year low of $0.83 and a 1-year high of $2.00. The company has a market capitalization of $366.03 million, a price-to-earnings ratio of -1.28, a price-to-earnings-growth ratio of 0.29 and a beta of 0.79. The company has a debt-to-equity ratio of 0.48, a quick ratio of 0.49 and a current ratio of 0.54. The company's fifty day simple moving average is $1.20 and its 200-day simple moving average is $1.34.

Ring Energy (NYSEAMERICAN:REI - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The company reported $0.10 earnings per share for the quarter, topping the consensus estimate of $0.07 by $0.03. The firm had revenue of $104.68 million during the quarter, compared to analysts' expectations of $93.29 million. Ring Energy had a positive return on equity of 5.55% and a negative net margin of 68.02%. Sell-side analysts expect that Ring Energy will post 0.11 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in 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 initiated coverage on Ring Energy in a research note on Wednesday, July 15th. They issued a "buy" rating and a $2.00 price objective on the stock. One research analyst has rated the stock with a Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $2.00.

Insider Transactions at Ring Energy

In related news, CEO Paul D. Mckinney purchased 50,000 shares of Ring Energy stock in a transaction that occurred on Monday, June 15th. The shares were purchased at an average cost of $1.19 per share, with a total value of $59,500.00. Following the transaction, the chief executive officer owned 4,158,463 shares of the company's stock, valued at approximately $4,948,570.97. The trade was a 1.22% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. Also, EVP Sundip Singh Johl acquired 231,000 shares of the stock in a transaction on Monday, June 15th. The stock was purchased at an average cost of $1.21 per share, with a total value of $279,510.00. Following the transaction, the executive vice president directly owned 548,460 shares of the company's stock, valued at $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 currently owned by company insiders.

Institutional Investors Weigh In On Ring Energy

Several hedge funds have recently bought and sold shares of the stock. DGS Capital Management LLC boosted its stake in Ring Energy by 65.4% in 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. Van Den Berg Management I Inc. raised its position in Ring Energy by 39.9% during the third quarter. Van Den Berg Management I Inc. now owns 50,884 shares of the company's stock valued at $55,000 after purchasing an additional 14,523 shares in the last quarter. Barry Investment Advisors LLC lifted its holdings in Ring Energy by 100.0% during the 1st quarter. Barry Investment Advisors LLC now owns 30,000 shares of the company's stock worth $46,000 after buying an additional 15,000 shares during the period. Callahan Advisors LLC grew its stake in shares of Ring Energy by 53.5% in the 4th quarter. Callahan Advisors LLC now owns 43,061 shares of the company's stock valued at $37,000 after buying an additional 15,000 shares during the period. Finally, Jefferies Financial Group Inc. lifted its position in shares of Ring Energy by 90.0% during the fourth quarter. Jefferies Financial Group Inc. now owns 36,861 shares of the company's stock valued at $32,000 after purchasing an additional 17,461 shares in the last quarter. 77.14% of the stock is currently owned by institutional investors and hedge funds.

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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