Shares of SRC Energy Inc. (SRCI) have dropped -20.5% since the company’s last earnings report. Over the past 11 fiscal quarters, SRC Energy Inc. (NYSE:SRCI) has topped consensus earnings estimates in 7 quarters (58%), missed earnings in 3 quarters (25%), whereas at 1 occasion EPS met analyst expectations. SRCI last reported earnings on October 31, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $0.26 per share, -93.94% change on the same period last year. That was better than consensus for $0.25. Revenue for the recent quarter stood at $160.98 million, up 55% on last year and above the $157.08 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $171 million to $204.8 million, which should be compared with $147.63 million generated last year. EPS is seen in a range of $0.25 to $0.44, against the $0.23 reported a year ago.
SRCI’s 50 day simple moving average (SMA 50) price is $7.47 and its 200-day simple moving average (SMA 200) price is $9.64. The company’s stock currently has a total float of 239.33M shares. Its weekly volatility is hovering around 6.38% and felt 6.44% volatility in price over a month. On the upside, the share price will test short term resistance at around $5.5. On a downside, the stock is likely to find some support, which begins at $4.96. The failure to get near-term support could push it to $4.74.
Separately, it has been reported that multiple insider activity took place at SRC Energy Inc. (SRCI). EVP, Chief Development Officer Spence Nicholas acquired 10,000 shares for $147,760 in transaction occurred on 2018/11/06. After making this transaction, the EVP, Chief Development Officer owns a direct stake of 75,700 shares, worth $765,397, as per the last closing price. On 2018/08/14 Henderson James P, EVP & CFO at SRCI, purchased 10,000 shares at an average price of $9.26 per share. The new stake is valued at $1,307,494.
President, CEO, Peterson Lynn A had invested in 20,000 shares for $626,591 through a trade on 2018/08/14. Following this activity, the insider holds 185,200 shares worth $3,245,741 as of recent close. Wall Street’s most bullish SRC Energy Inc. (NYSE:SRCI) analysts are predicting the share price to blow past $19 per share during the next 12 months. The current median share price forecast by them is $13, suggesting that the stock could increase 150.97% in that time frame. The average price target of $13.07 calls for a nearly 152.32% increase in the stock price.
It had seen a positive analyst call from Robert W. Baird, which upgraded the stock from Neutral to Outperform on October 15. Analysts at KLR Group, shed their negative views on June 08 by lifting it fromHold to Buy. The stock lost favor of KLR Group analysts who expressed their lack of confidence in it using a downgrade from Buy to Hold on May 08.
When looking at valuations, SRC Energy Inc. (SRCI) has a cheap P/E of 5.41x as compared to industry average of 14.32x. Moreover, it trades for 3.58 times the next 12 months of expected earnings. Also, it is trading at rather inexpensive levels at just over 0.84x price/book and 2.13x price/sales. Compared to others, SRC Energy Inc. is in a different league with regards to profitability, having net margins of 38.5%. To put some perspective around this, the industry’s average net margin is 17.86%. SRCI’s ROE is 16.3%, which is also considerably worse than the industry’s ROE of 18.53%. It’s also not liquid in the near term, with a current ratio of 0.5. The stock has a debt/capital of 0.44.
SRC Energy Inc. (NYSE:SRCI) sank as low as $5.06 Thursday before getting settled at $5.18. The -7.99 percent decrease called for market cap to move at $1.27B. The price went up as high as $5.06 before retreating. Trading activity significantly weakened as the volume at ready counter decreased to 3,577,895 shares versus 3,806,235 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 3,108,533 shares. The stock is now -7.33% above against its bear-market low of $5.59 on December 06, 2018. It has retreated -157.14% since it’s 52-week high of $13.32 reached in June. Now the market price is down -40.73% on the year and down -39.27% YTD.