Extraction Oil & Gas, Inc. (XOG) Stock Next Stop, $5.78?

Shares of Extraction Oil & Gas, Inc. (XOG) have dropped -31.2% since the company’s last earnings report. Over the past 7 fiscal quarters, Extraction Oil & Gas, Inc. (NASDAQ:XOG) has topped consensus earnings estimates in 3 quarters (33%), missed earnings in 4 quarters (44%), whereas at 0 occasion EPS met analyst expectations. XOG last reported earnings on November 06, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $0.43 per share, -99.89% change on the same period last year. That was better than consensus for $0.09. Revenue for the recent quarter stood at $282.16 million, up 56% on last year and above the $263.91 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $249.27 million to $325.45 million, which should be compared with $308.99 million generated last year. EPS is seen in a range of $0.06 to $0.21, against the $0.16 reported a year ago.

XOG’s 50 day simple moving average (SMA 50) price is $8.56 and its 200-day simple moving average (SMA 200) price is $12.22. The company’s stock currently has a total float of 133.02M shares. Its weekly volatility is hovering around 6.62% and felt 7.59% volatility in price over a month. On the upside, the share price will test short term resistance at around $5.78. On a downside, the stock is likely to find some support, which begins at $5.35. The failure to get near-term support could push it to $5.17.

Separately, it has been reported that multiple insider activity took place at Extraction Oil & Gas, Inc. (XOG). President and Director Owens Matthew R sold 400,000 shares for $5,222,098 in transaction occurred on 2017/12/20. After making this transaction, the President and Director owns a direct stake of 5,924,000 shares, worth $28,930,423, as per the last closing price.

Wall Street’s most bullish Extraction Oil & Gas, Inc. (NASDAQ:XOG) analysts are predicting the share price to blow past $22 per share during the next 12 months. The current median share price forecast by them is $12.5, suggesting that the stock could increase 125.63% in that time frame. The average price target of $13.88 calls for a nearly 150.54% increase in the stock price.

It had seen a new analyst call from Stephens, which initiated the stock at Overweight on December 06. Analysts at Credit Suisse, shed their positive views on November 12 by lowering it fromOutperform to Neutral. Brokerage firm Imperial Capital, looks cautious as they stick to prior recommendation of Outperform, in a call on August 09. However, they did change the target price from $26 to $24. Macquarie analysts came out with bearish views on August 07 when the call was made. They think the stock is now Neutral compared to to their prior call for Outperform.

Moreover, it trades for 6.91 times the next 12 months of expected earnings. Also, it is trading at rather inexpensive levels at just over 0.58x price/book and 1.04x price/sales. Compared to others, Extraction Oil & Gas, Inc. is in a different league with regards to profitability, having net margins of -2.9%. To put some perspective around this, the industry’s average net margin is 6.89%. XOG’s ROE is -1.8%, which is also considerably worse than the industry’s ROE of 6.89%. It’s also not liquid in the near term, with a current ratio of 0.8. The stock has a debt/capital of 0.85.

Extraction Oil & Gas, Inc. (NASDAQ:XOG) sank as low as $5.41 Thursday before getting settled at $5.54. The -7.36 percent decrease called for market cap to move at $1.02B. The price went up as high as $5.41 before retreating. Trading activity significantly weakened as the volume at ready counter decreased to 4,086,243 shares versus 5,036,310 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,343,478 shares. The stock is now 2.03% above against its bear-market low of $5.43 on December 06, 2018. It has retreated -214.44% since it’s 52-week high of $17.42 reached in June. Now the market price is down -63.62% on the year and down -61.29% YTD.