Cimarex Energy (XEC) In A Perilous Reversal
Trade-Ideas LLC identified
(
) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Cimarex Energy as such a stock due to the following factors:
- XEC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $147.4 million.
- XEC has traded 1.2 million shares today.
- XEC is down 3% today.
- XEC was up 7.1% yesterday.
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More details on XEC:
Cimarex Energy Co. operates as an independent oil and gas exploration and production company primarily in Oklahoma, Texas, and New Mexico. The stock currently has a dividend yield of 0.3%. XEC has a PE ratio of 166. Currently there are 15 analysts that rate Cimarex Energy a buy, 1 analyst rates it a sell, and 4 rate it a hold.
The average volume for Cimarex Energy has been 1.4 million shares per day over the past 30 days. Cimarex Energy has a market cap of $10.1 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.37 and a short float of 4.5% with 3.13 days to cover. Shares are up 27.2% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Cimarex Energy as a
. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, CIMAREX ENERGY CO's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to $85.06 million or 24.84% when compared to the same quarter last year. Despite a decrease in cash flow CIMAREX ENERGY CO is still fairing well by exceeding its industry average cash flow growth rate of -41.86%.
- XEC has underperformed the S&P 500 Index, declining 13.82% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- XEC, with its decline in revenue, slightly underperformed the industry average of 31.8%. Since the same quarter one year prior, revenues fell by 33.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- Despite currently having a low debt-to-equity ratio of 0.57, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that XEC's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.43 is high and demonstrates strong liquidity.
- You can view the full Cimarex Energy Ratings Report.
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