W&T Offshore Inc. (WTI) shares are trading at higher $2.36 and the avg recommendation for the stock is Hold. while the current analyst price target stands at $3.77.
To add more color to this target, the company’s high over the last year is $6.10 and the low is $1.07. Over the last 52 weeks, WTI is down -42.44% while the S&P 500 is up 19.49%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, WTI reported a profit of $22.48 million. W&T Offshore Inc. also saw revenues increase to $55.24 million. In addition, WTI has free cash flow of $53.46 million as of 06-2020. The company’s EBITDA came in at $3.5 million which compares well with its peers.
WTI booked profit margins of 31.40%, its Return on Equity (ROE) is -66.40%, and its Return on Assets is 14.60%. All told, it is clear that, WTI needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. WTI has a short ratio of 3.23 and outstanding shares of 141.60M.
WTI has seen increased volume after this news and investors are putting their support behind the value proposition. Traders will also note the company’s earnings per share came in at 1.03. W&T Offshore Inc. WTI also noted assets of $942.75 million at the end of the last quarter. Investors should also keep an eye on sector updates as WTI has historically followed its peers on positive news.
All told, W&T Offshore Inc. WTI has strung together solid data and demonstrated underlying fundamentals. At its current valuation, WTI represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
W&T Offshore Inc. WTI is now commanding a market cap of 347.63M and a float of 92.48M. WTI is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of WTI stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in WTI, either long or short, and we have not been compensated for this article.