NEW YORK (TheStreet) -- Shares of Swift Energy (SFY) - Get Report are plunging 6.14% to $2.14 after analysts at JPMorgan downgraded the company to "underweight" from "neutral."

This downgrade comes after the company in early May released weak first quarter results. The company reported revenue of $68.3 million, or a loss of 83 cents per share, compared with revenue of $144.2 million, or 16 cents per share in the same quarter last year.

Overall, revenue for this quarter decreased 53% from a year ago period.

The company said the decrease was primarily due to lower commodity prices as well as lower oil production, partially offset by higher natural gas production.

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Headquartered in Houston, Swift Energy is an independent oil and gas company.

TheStreet Ratings team rates SWIFT ENERGY CO as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate SWIFT ENERGY CO (SFY) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 8866.6% when compared to the same quarter one year ago, falling from $5.44 million to -$477.08 million.
  • The debt-to-equity ratio is very high at 3.52 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
  • 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, SWIFT ENERGY CO's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$0.77 million or 101.10% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 79.18%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 9091.66% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • You can view the full analysis from the report here: SFY Ratings Report