Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified SandRidge Energy as such a stock due to the following factors:
- SD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $47.1 million.
- SD has traded 170,816 shares today.
- SD is up 4.7% today.
- SD was down 5.4% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in SD with the Ticky from Trade-Ideas. See the FREE profile for SD NOW at Trade-Ideas
More details on SD:
SandRidge Energy, Inc., together with its subsidiaries, explores for and produces oil and natural gas properties primarily in the Mid-Continent region of the United States. It operates through three segments: Exploration and Production, Drilling and Oil Field Services, and Midstream Services. Currently there are no analysts that rate SandRidge Energy a buy, 2 analysts rate it a sell, and 9 rate it a hold.
The average volume for SandRidge Energy has been 13.7 million shares per day over the past 30 days. SandRidge Energy has a market cap of $899.1 million and is part of the basic materials sector and energy industry. The stock has a beta of 1.71 and a short float of 14% with 2.40 days to cover. Shares are down 66.7% year-to-date as of the close of trading on Friday.
rates SandRidge Energy as a
. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow, generally high debt management risk, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
Highlights from the ratings report include:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Oil, Gas & Consumable Fuels industry. The net income has decreased by 19.6% when compared to the same quarter one year ago, dropping from -$20.44 million to -$24.44 million.
- Net operating cash flow has decreased to $140.34 million or 46.68% 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.
- Currently the debt-to-equity ratio of 1.93 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Regardless of the company's weak debt-to-equity ratio, SD has managed to keep a strong quick ratio of 1.77, which demonstrates the ability to cover short-term cash needs.
- Looking at the price performance of SD's shares over the past 12 months, there is not much good news to report: the stock is down 66.67%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than 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.
- SANDRIDGE ENERGY INC's earnings per share declined by 14.3% 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 two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, SANDRIDGE ENERGY INC reported poor results of -$1.27 versus -$0.14 in the prior year. This year, the market expects an improvement in earnings ($0.18 versus -$1.27).
- You can view the full SandRidge Energy Ratings Report.