Parsley Energy, Inc. (PE): A Roller-Coaster Ride For Uninformed Investors

On December 03, 2019, Parsley Energy, Inc. (NYSE:PE) shares lost -0.99% or -0.15 points to close at $15.03 with a thin trading volume of 5.159 million shares. It opened the trading session at $15.12, the shares rose to $15.185 and dropped to $14.79, the range by which the price of stock traded the whole day. The company now has a market cap of $4.82 billion and currently has 320.89 million outstanding shares. Parsley Energy, Inc. (PE) stock has plunged -8.35 percent of market value in 21 trading days.

PE stock’s trailing 3-year beta is 0.54, meaning there will be a lower rate of return, although posing a lower risk. The part of a firm’s profit given to each outstanding share of regular stock was $0.95 share in the trailing 52 weeks. The stock’s value fallen -5.94 percent year to date (YTD) compared to a decline of -25.34 percent in 52 week’s period. The firm’s shares are still trading -32.02 percent below its 1-year high of $22.11 and 9.55 percent up from 52-week low of $13.72. The average consensus ranking on the company is 1.8, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a buy.

Parsley Energy, Inc. (PE) is most likely going to rise 61.21 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $34-month high price target. This represents a whopping 126.21 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $24.5, which means a return possibility of 63.01 percent in comparison with the closing price of the stock of $15.03 on December 03. The lowest price set for the stock is $19 — just above 26.41 percent from PE share price now.

Past records have indicated that shares in Parsley Energy, Inc. rose on 14 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of PE’s Q4 earnings on February 19. Analysts are predicting revenue to climb 13.1 percent to $515M in the financial fourth quarter, while EPS will soar by about 13.33 percent to $0.34 per share. In the last quarter, it earnings of $0.32 per share came worse than the $0.32177, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $454.88M, missing the $456.66M analysts had expected. Earnings are seen to rise by 222.4 percent this year, 36.09 percent in the coming year and the trend continues by 23.92 percent every year in the next 5 years.

Let’s take a glimpse at some insider activity at Parsley Energy, Inc. (NYSE:PE) and observe the pattern. The earliest insider trade happened on 11/29/2019. Brokmeyer Ron gathered a total of 5 thousand shares of the firm at average share price of $14.95. The total amount for the purchase was set at $74.75 thousand. On completing this exchange, the Director account balance was 36.62 thousand shares. The stock grew 1.54 percent from that insider purchase. On 06/05/2019, Windlinger Jerry, Director, did a purchase of 1.99 thousand shares at a price of $17.5 per share. This increased 34.74 thousand shares to the insider’s fortune and the stock experienced a -13.26 percent retreat in price since the news became public. This exchange saw 33.38 thousand shares get into the Director account.

On 05/20/2019,, 10% Owner Sheffield Bryan recorded a sale transaction valued at $2.02 million. The sale at $20.24 a share has eliminated 100 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed -25 percent decrease since the transaction reporting date. The company insider is left with 22.1 million shares remaining in the account. Roberts Colin, performed a sale of 3 thousand shares in a transaction worth $60 thousand. The disposal recorded on 04/12/2019 was priced at $20 per share. The stock price plunged -24.1 percent since the transaction. Roberts Colin currently holds a stake of 271.93 thousand in PE stock which is worth $4.09 million after the insider selling.

The stock is lingering around the initial support level of $14.82. After this, the following support is at the zone of $14.61. Up until the time the PE stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 41.67 on the daily chart, and this may be a cause for concern. In case the price goes below $14.61 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $15.21 level may cause a pull-back move approaching $15.4 mark.

Parsley Energy, Inc. (PE) shares are trading at a P/E ratio of 15.8 times earnings posted in the trailing 12 months. The industry PE deals with has an average P/E of 13.1. Its P/B ratio is standing at 0.8X compared to the 1.1 industry average. It is additionally sporting a 2.2 on the Price-to-Sales ratio, compared to the industry’s P/S average of 1.6. Parsley Energy, Inc. has a 84.6% gross profit margin, with its operating margin around 25.3%. Alongside this, the company’s net profit margin currently stands at 14%.