What Analyst Ratings Spell For Cimarex Energy Co. (NYSE:XEC) Stock?

Stock analysts at Credit Suisse upped their rating on shares of Cimarex Energy Co. (NYSE:XEC) from Neutral to a new rating of Outperform in their opinion released on January 23. Credit Suisse analysts bumped their recommendation on XEC stock from prior rating of Neutral to Outperform in a separate flash note to investors on January 22. Analysts at Susquehanna downgraded the company stock to a Neutral call from its previous Positive stance, in a flash note that dated back to January 13.

Let’s take a glimpse at some insider activity at Cimarex Energy Co. (NYSE:XEC) and observe the pattern. The earliest insider trade happened on 01/07/2020. ALBI JOSEPH R parted with a total of 2.5 thousand shares of the firm at average share price of $55. The total amount for the sale was set at $137.5 thousand. On completing this exchange, the Executive VP, COO account balance was 190.57 thousand shares. The stock lost -19.64 percent from that insider sale. On 12/11/2019, SULLIVAN MICHAEL J/CO, Director, did a sale of 2.72 thousand shares at a price of $47.44 per share. This got rid of 128.89 thousand shares from the insider’s fortune and the stock experienced a -6.83 percent retreat in price since the news became public. This exchange saw 19.17 thousand shares get out from the Director account. On 12/04/2019, Ex VP BELL STEPHEN P recorded a sale transaction valued at $422.34 thousand. The sale at $46.58 a share has eliminated 9.07 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed -5.11 percent decrease since the transaction reporting date. The company insider is left with 102.1 thousand shares remaining in the account. Barron Francis Brian, who works as Sr VP-General Counsel at the company, performed a sale of 2.5 thousand shares in a transaction worth $117.33 thousand. The disposal recorded on 12/04/2019 was priced at $46.93 per share. The stock price plunged -5.82 percent since the transaction. Barron Francis Brian currently holds a stake of 81.02 thousand in XEC stock which is worth $3.58 million after the insider selling.

Cimarex Energy Co. (XEC) is most likely going to rise 48.6 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $104 as 12-month high price target. This represents a whopping 135.51 percent increase from the current trading price of shares. The 52-week median price target given by the analysts is $62.5, which means a return possibility of 41.53 percent in comparison with the closing price of the stock of $44.16 in recent trading session. The lowest price set for the stock is $54.5 which is just above 23.41 percent from XEC share’s price at the end of session.

The stock is lingering around the initial support level of $41.49. After this, the following support is at the zone of $41. Up until the time the XEC stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 38.36 on the daily chart, and this may be a cause for comfort. In case the price goes below $41 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $42.71 level may cause a pull-back move approaching $43.43 mark.

In the recent trading session, Cimarex Energy Co. (NYSE:XEC) shares gained 5.17% or 2.17 points to reach at $44.16 with a thin trading volume of 1.355 million shares. It opened the trading session at $42.38, the shares rose to $42.93 and dropped to $41.715, the range by which the price of stock traded the whole session. The company now has a market cap of $4.46 billion and currently has 106.17 million outstanding shares. Cimarex Energy Co. (XEC) stock has plunged -21.37 percent of market value in 21 trading days.

XEC stock’s trailing 3-year beta is 1.43, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was $5.13 share in the trailing 52 weeks. The stock’s value fallen -20 percent year to date (YTD) compared to a decline of -44.95 percent in 52 week’s period. The firm’s shares are still trading -42.46 percent below its 1-year high of $76.74 and 18.74 percent up from 52-week low of $37.19. The average consensus ranking on the company is 2.1, 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 sell.

Cimarex Energy Co. (XEC) shares are trading at a P/E ratio of 8.45 times earnings posted in the trailing 12 months. The industry XEC deals with has an average P/E of 13.68. Its P/B ratio is standing at 1.22X compared to the 1.87 industry average. It is additionally sporting a 2.1 on the Price-to-Sales ratio, compared to the industry’s P/S average of 0.24. Cimarex Energy Co. has a 76.5% gross profit margin, with its operating margin around 12.9%. Alongside this, the company’s net profit margin currently stands at 8.5%.

Past records have indicated that shares in Cimarex Energy Co. declined on 22 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 XEC’s Q4 earnings on February 19. Analysts are predicting revenue to suffer decline of -1 percent to $618M in the financial fourth quarter, while EPS will soar by about -38.38 percent to $1.22 per share. In the last quarter, it’s earnings of $0.82 per share came worse than the $1.34666, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $624.12M, topping the $620.2M analysts had expected. Earnings are seen to rise by 83.3 percent this year, 33.49 percent in the coming year and the trend continues by 1.66 percent every year in the next 5 years.