Southwestern Energy Company (SWN) Analysts’ Calls on SWN Stock Conflict

Analysts at BofA/Merrill upped their rating on shares of Southwestern Energy Company (NYSE:SWN) from Underperform to Neutral in their opinion released on November 13. Johnson Rice analysts have downgraded their rating of SWN stock from Buy to Accumulate in a separate flash note to investors on August 15.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Southwestern Energy Company (NYSE:SWN)’s prospects. The earliest insider trade took place on 11/06/2018. Mccauley Jennifer N. parted with a total of 10.85 thousand shares of company at average share price of $5.88. The total for the sales was set at $63.8 thousand. After this transaction, the SVP – Administration account balance stood at 30.8 thousand shares. The stock lost -21.09 percent since that insider sale. On 12/09/2016, Mccauley Jennifer N., SVP – Administration, sold 3.61 thousand shares at a price per share of $12.61. This removed 45.53 thousand shares from the insider’s fortune and the stock saw a -63.2 percent retreat in value since the news became public. This transaction left 20.6 thousand shares in the SVP – Administration account. On 12/06/2016, Senior Vice President & CFO Owen Robert Craig performed a sale transaction worth $458.25 thousand. This sale at $12.22 each has eliminated 37.5 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -62.03 percent decrease since the transaction was reported. The insider now is left with 99.64 thousand shares remaining in the account. Kerley Gregory D, who performs the Director job, sold 12 thousand shares for $172.08 thousand. The disposal occurred on 09/20/2016 was priced at $14.34 per share. The share price plunged -67.64 percent since the reporting date. Kerley Gregory D now left with a stake of 302.5 thousand SWN stock worth $1.36 million after the insider selling.

Southwestern Energy Company (SWN) is expected to jump by 39.47 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $9.15-month high price target. This represents a whopping 102.88 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $6, which represents a return potential of 33.04 percent when compared to the closing price of the stock of $4.51 on Tuesday, December 04. The lowest price target for the stock is $3 — slightly more than -33.48 percent from SWN’s current share price.

The shares are currently floating around the first support level of $4.42. Below this, the next support is placed in the zone of $4.33. Till the time, the SWN stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 31.22 on daily chart, which may remain a cause for comfort. If the price breaks below $4.33 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $4.66 mark may result into a pull-back move towards $4.82 level.

SWN shares dropped -0.13 points or -2.8 percent on Tuesday to $4.51 with a heavy trade volume of 23.534 million shares. After opening the session at $4.67, the shares went as high as $4.725 and as low as $4.48, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $2.68 billion and now has 593.34 million shares outstanding. Southwestern Energy Company (SWN) stock has lost -16.48 percent of market value in 21 trading days.

SWN stock has a trailing 3-year beta of 0.65, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $0.92 a share in the trailing twelve months. The stock’s value has fallen -19.18 percent year to date (YTD) against a decline of -27.38 percent in 12 month’s time. The company’s shares still trade -30.71 percent away from its 1-year high of $6.51 and 31.87 percent up from 52-week low of $3.42. The average consensus rating on the company is 3, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a hold.

Shares of Southwestern Energy Company (SWN) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry SWN operates in has an average P/E of 14.32. Its P/E ratio went as low as 10.41X and as high as 19.63 over the 5-year span. Further, it is sporting a 0.77 on the Price-to-Sales ratio. Compare this with the industry average P/S of 99.94. 70.1 percent is the gross profit margin for Southwestern Energy Company and operating margin sits at 17.3 percent. Along with this, the net profit margin is 14.1 percent.

SWN will be showing off its Q4 earnings on February 21. Analysts are forecasting revenue to climb 11.7 percent to $904M in the next fiscal quarter, while earnings are seen soaring by nearly 125 percent to $0.27 per share. History has shown that shares in Southwestern Energy Company have gone down on 18 different earnings reaction days and are predicted to add 0.04 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.25 per share, better than the $0.21, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $951M, better than the $866M analysts expected. Earnings are estimated to increase by 125.8 percent this year, -11.46 percent next year and continue to increase by 6.38 percent annually for the next 5 years.