W&T Offshore Inc. (WTI) shares are trading at higher $2.22 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $3.60.
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 -48.37% while the S&P 500 is up 18.53%. 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 $31.25 million. W&T Offshore Inc. also saw revenues increase to $72.52 million. In addition, WTI has free cash flow of $73.03 million as of 09-2020. The company’s EBITDA came in at $7.19 million which compares well with its peers.
WTI booked profit margins of 13.90%, its Return on Equity (ROE) is -27.50%, and its Return on Assets is 5.80%. 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 5.56 and outstanding shares of 141.62M.
WTI has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 4.65 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 0.40. W&T Offshore Inc. WTI also noted assets of $949.48 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 294.90M 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.