Imperial Capital cut its price target on the stock to $14.50 from $23 and maintained its "outperform" rating. The firm said the reduction represents a "more cautious fundamental outlook" on energy industry activity in the next few years.
Stephens also lowered its rating on Basic Energy Services to "equal weight" from "overweight."
More than 4.6 million shares had changed hands as of 2:59 p.m., compared to the daily average volume of 2,447,600.
Separately, TheStreet Ratings team rates BASIC ENERGY SERVICES INC as a "hold" with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate BASIC ENERGY SERVICES INC (BAS) 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 revenue growth, compelling growth in net income and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, weak operating cash flow and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- BAS's revenue growth has slightly outpaced the industry average of 16.4%. Since the same quarter one year prior, revenues rose by 21.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Energy Equipment & Services industry. The net income increased by 242.8% when compared to the same quarter one year prior, rising from -$6.96 million to $9.93 million.
- BASIC ENERGY SERVICES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BASIC ENERGY SERVICES INC swung to a loss, reporting -$0.89 versus $0.45 in the prior year. This year, the market expects an improvement in earnings ($0.55 versus -$0.89).
- Net operating cash flow has declined marginally to $37.77 million or 2.60% 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.
- BAS's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 26.78%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
- You can view the full analysis from the report here: BAS Ratings Report