Is The Recent Reaction Justified? – McDermott International, Inc. (MDR), Ring Energy, Inc. (REI)

The stocks of McDermott International, Inc. (NYSE:MDR) has been Downgraded as a Sector Weight from Overweight by KeyBanc Capital Mkts in its latest research note that was published on October 31. The stock also received a Neutral rating from Citigroup with the price target of $10 to $8. This was contained in a research note published by the firm on April 13. The stock received a Sector Weight to Overweight rating in KeyBanc Capital Mkts’s research note that was published on January 24.

McDermott’s stock is covered by 3 analysts, with none of them rating the stock as Buy. It has been deemed to have strong buy by none of the analysts, 2 of them have rated it as a Hold while 1 of them rated it as sell. The situation was different a month ago when the stock was rated as a Buy by only 1 analysts. None of them rated it as strong buy with 5 of them recommended investors to Hold on to the stock. Meanwhile, none analyst(s) rated it as a sell. The above data shows that MDR has an average analyst rating of Underweight.

McDermott International, Inc., which has current market capitalization of above $177 Million, published its last quarter earnings on September 30, 2019. The company was able to amass $2 Billion in revenue, which saw a quarterly growth rate of -7.25 percent. During that quarter of the year, McDermott also recorded $-1.8 earnings per share (EPS) which is $-1.59 above the $-0.21 estimated by the analysts, leading to a surprise factor of -757.14%.

MDR surged by $0.08 during the normal trading session on Friday and reaching a high of $0.72 during the day while it closed the day at $0.68. The McDermott stock had a high trading volume of 24.84 million shares on that day, which is high compared to the average daily volume of 20.05M shares. MDR has also lost 29.28% of its value over the past 7 days. However, the stock has declined by 83.71% in the 3 months of the year. Over the past six months meanwhile, it has lost 90.62% while it has lost 89.54% year-on date.

Shares in Ring Energy, Inc. (NYSE:REI) jumped over 1.44 percent on Friday. The company’s stock began trading at $2.11 above the previous closing price of $2.08, and finished the day at $1.94. Let us now take a look at the stock’s potential support and resistance levels. The publicly traded company was seen to have slipped by -23.62% from its 3 months high price. However, taking another look at REI will indicate that it is trading +57.72% away from its 90-day low. Looking at the bigger picture, the Ring Energy, Inc. stock has dropped by -75% from its 52-week high while it has surged by +57.72% from its 52-week low price.

On September 13, 2019 Hoffman Kelly W., CEO bought 10,000 shares of the company. The average price for that transaction was $1.47 per share, which meant that Hoffman Kelly W. spent $14,700.00 purchasing the stocks. The purchase was made public, with the document of the transaction filed with the SEC. Another insider trading occurred, with CEO, Hoffman Kelly W. purchasing 22,000 shares of this stock on September 11, 2019. The average purchasing price for the stock was $1.60 per share, with the purchased stock accruing $35,200.00. Following this transaction, the insider now holds 1,550,000 shares of the company, which is worth around $992,000.00.

Let us now take a quick look at the stock’s short, medium and long-term indicators. Composite Indicator shows that REI stock was rated as a Buy by TrendSpotter. Its short-term indicators reveal that Ring has a 20-day average volume of 1102550 shares. This has led to the REI price forecast being placed as a Hold on an average basis. In the medium term, however, the REI stock has its 50-Day average volume of 1377950 shares, with the indicators also rating it as a 50%Sell. Finally, in the long-term, the REI stocks have a 100-Day average volume of 1229828 shares, with the long-term indicators rating the stock as just 100%Sell.

Looking at the stock’s Technical analysis information over the past 50 days shows that its Raw Stochastic average stood at 51.61%. This figure is better than the company’s 20-day Raw Stochastic average which currently stands at 44.44%. Over the past 20 days, Ring’s Stochastic %K stood at 57.72% while its Stochastic %D was revealed to be 68.56%.