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Thursday, September 21, 2023

Laredo Petroleum Inc. (NYSE:LPI) is Waving the Bull Flag

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Laredo Petroleum Inc. (LPI) shares are trading at higher $16.55 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $16.98.

To add more color to this target, the company’s high over the last year is $61.00 and the low is $6.60. Over the last 52 weeks, LPI is down -65.08% while the S&P 500 is up 17.22%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, LPI reported a profit of 167.68 million. Laredo Petroleum Inc. also saw revenues decrease to $173.55 million. In addition, LPI has free cash flow of -$33.76 million as of 09-2020. The company’s EBITDA came in at -$116.74 million which compares well with its peers.

LPI Return on Equity (ROE) is -166.80%, and its Return on Assets is -46.60%. All told, it is clear that, LPI 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. LPI has a short ratio of 2.54 and outstanding shares of 11.69M.

Company Outlook

LPI has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 1.0 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -81.54. Laredo Petroleum Inc. LPI also noted assets of $1.56 billion at the end of the last quarter. Investors should also keep an eye on sector updates as LPI has historically followed its peers on positive news.

All told, Laredo Petroleum Inc. LPI has strung together solid data and demonstrated underlying fundamentals. At its current valuation, LPI 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.

Laredo Petroleum Inc. LPI is now commanding a market cap of 156.23M and a float of 11.52M. LPI 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 LPI 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 LPI, either long or short, and we have not been compensated for this article.

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