RPC, Inc. (NYSE:RES) Receives Consensus Recommendation of "Reduce" from Analysts

Key Points

• Analysts have assigned RPC a consensus recommendation of “Reduce” (one sell, four holds) with an average 1‑year price target of $5.25, below the recent share price.
• RPC reported quarterly EPS of $0.04, missing the $0.07 estimate, while revenue rose 26.9% YoY to $425.8M; the stock trades around $6.57 with a market cap of $1.46B and a PE of about 43.8.
• The company pays a quarterly dividend of $0.04 (annualized $0.16, yield 2.4%), but has a payout ratio of 106.67%, indicating the dividend may be unsustainably high relative to earnings.

Shares of RPC, Inc. (NYSE:RES - Get Free Report) have been assigned a consensus recommendation of "Reduce" from the five ratings firms that are presently covering the stock, MarketBeat reports. One equities research analyst has rated the stock with a sell recommendation and four have issued a hold recommendation on the company. The average 1 year price target among analysts that have issued a report on the stock in the last year is $5.25.

RES has been the subject of a number of analyst reports. Citigroup lifted their price objective on RPC from $5.75 to $6.00 and gave the company a "neutral" rating in a report on Thursday, December 11th. Wall Street Zen cut shares of RPC from a "buy" rating to a "hold" rating in a research report on Saturday, February 7th. Piper Sandler reissued an "underweight" rating on shares of RPC in a report on Thursday, December 18th. Weiss Ratings restated a "hold (c-)" rating on shares of RPC in a research report on Monday, December 29th. Finally, Susquehanna upped their price objective on shares of RPC from $5.50 to $6.00 and gave the stock a "neutral" rating in a research note on Wednesday, January 7th.

Institutional Investors Weigh In On RPC

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. EverSource Wealth Advisors LLC boosted its stake in RPC by 220.6% in the second quarter. EverSource Wealth Advisors LLC now owns 6,533 shares of the oil and gas company's stock worth $31,000 after purchasing an additional 4,495 shares in the last quarter. Tower Research Capital LLC TRC increased its stake in shares of RPC by 243.4% in the second quarter. Tower Research Capital LLC TRC now owns 8,681 shares of the oil and gas company's stock valued at $41,000 after buying an additional 6,153 shares in the last quarter. Hantz Financial Services Inc. raised its holdings in shares of RPC by 940.3% in the third quarter. Hantz Financial Services Inc. now owns 9,113 shares of the oil and gas company's stock valued at $43,000 after buying an additional 8,237 shares during the last quarter. Aster Capital Management DIFC Ltd acquired a new position in RPC during the 4th quarter worth about $48,000. Finally, CWM LLC lifted its position in RPC by 88.2% during the 4th quarter. CWM LLC now owns 9,316 shares of the oil and gas company's stock worth $51,000 after buying an additional 4,365 shares in the last quarter. 41.06% of the stock is owned by institutional investors and hedge funds.

RPC Trading Up 2.6%

Shares of RES opened at $6.57 on Friday. The company has a current ratio of 3.24, a quick ratio of 2.70 and a debt-to-equity ratio of 0.03. The stock has a market cap of $1.46 billion, a PE ratio of 43.77 and a beta of 0.69. RPC has a 1 year low of $4.10 and a 1 year high of $6.85. The stock has a 50 day simple moving average of $6.03 and a 200-day simple moving average of $5.39.

RPC (NYSE:RES - Get Free Report) last announced its quarterly earnings results on Tuesday, February 3rd. The oil and gas company reported $0.04 EPS for the quarter, missing the consensus estimate of $0.07 by ($0.03). RPC had a net margin of 1.97% and a return on equity of 5.24%. The company had revenue of $425.78 million during the quarter, compared to analyst estimates of $423.30 million. During the same period in the prior year, the firm earned $0.06 EPS. RPC's quarterly revenue was up 26.9% compared to the same quarter last year. On average, sell-side analysts predict that RPC will post 0.31 EPS for the current fiscal year.

RPC Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, March 10th. Stockholders of record on Tuesday, February 10th were issued a $0.04 dividend. This represents a $0.16 annualized dividend and a dividend yield of 2.4%. The ex-dividend date of this dividend was Tuesday, February 10th. RPC's payout ratio is presently 106.67%.

About RPC

RPC, Inc NYSE: RES provides essential equipment and services to companies engaged in the exploration, production and maintenance of oil and natural gas wells. The firm operates as an equity interest holding company, partnering with a network of independent service businesses to deliver a comprehensive suite of offerings for well completion and production operations.

Through its affiliated service companies, RPC offers pressure pumping and fracturing services, coiled tubing and nitrogen pumping, downhole tools and telemetry solutions, well intervention and workover services, along with rental tools and supply-chain logistics.

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