RING Energy (REI) downgrade

[mattreue]

Wow. Seaport Securities issued a downgrade for Ring from Buy to Hold. With a PT of $12. But yet the stock has sold off over 22% to $8.30 this morning on heavy volume. That is upside of almost 50% from the price now. Anyone have any news? I cannot get my hands on the actual Seaport report.
"Ring Energy downgraded to Neutral from Buy at Seaport Global Seaport Global analyst John Aschenbeck downgraded Ring Energy to Neutral and cut its price target to $12 from $20. The analyst has looked at state data obtained from DrillingInfo and come to the conclusion that Ring's 2018 hz. San Andres completions have been underperforming older vintages by approximately 25%, and his prior type curve estimates by 34%."

[dan_s]

Another opinion: https://seekingalpha.com/article/420923 ... well-tolls

I have nothing new from the company. My valuation of REI is $18.00.

Neal Dingmann at SunTrust Robinson rates it a BUY with a price target of $19.00
Jeff Grampp at Northland Securities rates it a BUY with a price target of $19.00
John White at Roth Capital rates it a BUY with a price target of $22.00.

Unless Ring reports some VERY BAD well results, the selloff seems overdone to me.

[TexAg82]

Ring Energy, Inc. (NYSE American: REI) (“Ring”) (“Company”) has scheduled a conference call on Wednesday, October 3, 2018 at 12:00 p.m. ET to discuss current activity.

To participate, dial 877-709-8150 at least five minutes before the call is to begin. Please reference the Ring Energy conference call. International callers may also participate by dialing 201-689-8354. A telephone replay will also be available for one week beginning two hours after the completion of the live call, and can be accessed by dialing 877-660-6853, or 201-612-7415 for international callers, and entering the conference ID 13683798 when prompted. The results will also be available via live and a 3 month archived webcast at http://public.viavid.com/index.php?=131593.

[dave_n]

Very interesting that Seaport Global Securities would change their opinion to Neutral since they were one of the book-runners on February offering. That's not a decision made lightly. Now the scheduled call? A bit foreboding.

That said, given the company has no outstanding debt as of 2nd quarter and book value is just under market cap, not a lot of downside risk at this price.

[dave_n]

I referenced the SEC website for recent officer sales. The CEO recently exercised options. What was interesting is that he only has beneficial ownership of 7,546 shares after the transaction (column 5 in link below). Granted he has options, but those were awarded. Always nice to see some of their own money at risk.

See disclosure below:
https://www.sec.gov/Archives/edgar/data ... ry_doc.xml

Recent September Sales:
McCabe Stanley Myron 100,000 $1,122,550 $11.23
Hoffman Kelly W. 90,375 $1,021,770 $11.31
Wilson Daniel D 25,000 $278,348 $11.13
Rochford Living Trust Lloyd Timothy Rochford, Trustee 100,000 $1,140,161 $11.40