NEW YORK (TheStreet) -- Miller Energy (MILL - Get Report) experienced a stark rise in trading Monday closing up 11.4% to $5.79. This rise was followed a massive drop off on Friday where the stock fell 7.31%.
The reason for the rally was not immediately clear. The entire energy sector was up 0.2% today.
Earlier this month, Miller Energy recently added two new members to its board and consolidated the number of people on the board from ten to seven.
"We are excited to welcome Bob [G. Gower, Chairman of Ensysce Biosciences, Inc.] and Joe[T. Leary, Chief Financial Officer of Tarpon Operating & Development], two seasoned executives with many decades of business and senior management experience, to our Board of Directors," said Deloy Miller, Chairman of the Board of Directors. "During their distinguished careers, both Bob and Joe have worked at and served on the boards of companies across multiple industries, including financial services, energy and oil and gas exploration."
TheStreet Ratings team rates MILLER ENERGY RESOURCES INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate MILLER ENERGY RESOURCES INC (MILL) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and feeble growth in the company's earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- MILL's very impressive revenue growth greatly exceeded the industry average of 7.8%. Since the same quarter one year prior, revenues leaped by 107.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Compared to its closing price of one year ago, MILL's share price has jumped by 47.24%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- MILL's debt-to-equity ratio is very low at 0.20 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Despite the fact that MILL's debt-to-equity ratio is low, the quick ratio, which is currently 0.63, displays a potential problem in covering short-term cash needs.
- MILLER ENERGY RESOURCES INC's earnings per share declined by 7.1% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, MILLER ENERGY RESOURCES INC reported poor results of -$0.60 versus -$0.47 in the prior year. This year, the market expects an improvement in earnings (-$0.58 versus -$0.60).
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, MILLER ENERGY RESOURCES INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: MILL Ratings Report