Newfield Exploration Company (NFX) Looking Forward To Another Wild Ride

Analysts at Piper Jaffray, assumed coverage of Newfield Exploration Company (NYSE:NFX) with Overweight recommendation, according to their opinion released on September 28. SunTrust analysts have downgraded their rating of NFX stock from Buy to Hold in a separate flash note to investors on July 27. Analysts at Goldman downgraded the stock to a Neutral call from its previous Buy stance, in a research note that dated back to July 18.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Newfield Exploration Company (NYSE:NFX)’s prospects. The earliest insider trade took place on 09/27/2018. Boothby Lee K parted with a total of 16.16 thousand shares of company at average share price of $29.25. The total for the sales was set at $472.71 thousand. After this transaction, the President and CEO account balance stood at 198.9 thousand shares. The stock lost -42.53 percent since that insider sale. On 03/28/2018, Plank Roger B, Director, purchased 2 thousand shares at a price per share of $23.38. This added 46.76 thousand shares to the insider’s fortune and the stock saw a -28.1 percent retreat in value since the news became public. This transaction left 32.79 thousand shares in the Director account. On 03/01/2018, Director Ricks Thomas G performed a purchase transaction worth $196.19 thousand. This purchase at $23.78 each has added 8.25 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -29.31 percent decrease since the transaction was reported. The insider now is left with 66.45 thousand shares remaining in the account. Boothby Lee K, who performs the President and CEO job, sold 12 thousand shares for $381 thousand. The disposal occurred on 02/01/2018 was priced at $31.75 per share. The share price plunged -47.06 percent since the reporting date. Boothby Lee K now left with a stake of 215.72 thousand NFX stock worth $3.63 million after the insider selling.

Newfield Exploration Company (NFX) is expected to jump by 109.22 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $49.5-month high price target. This represents a whopping 194.47 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $34, which represents a return potential of 102.26 percent when compared to the closing price of the stock of $16.81 on Thursday, December 06. The lowest price target for the stock is $19 — slightly more than 13.03 percent from NFX’s current share price.

The shares are currently floating around the first support level of $16.35. Below this, the next support is placed in the zone of $15.89. Till the time, the NFX stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 31.93 on daily chart, which may remain a cause for comfort. If the price breaks below $15.89 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $17.05 mark may result into a pull-back move towards $17.29 level.

NFX shares dropped -0.42 points or -2.44 percent on Thursday to $16.81 with a heavy trade volume of 10.523 million shares. After opening the session at $16.71, the shares went as high as $16.83 and as low as $16.13, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $3.49 billion and now has 207.43 million shares outstanding. Newfield Exploration Company (NFX) stock has lost -25.29 percent of market value in 21 trading days.

NFX stock has a trailing 3-year beta of 1.7, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $2.4 a share in the trailing twelve months. The stock’s value has fallen -46.69 percent year to date (YTD) against a decline of -44.99 percent in 12 month’s time. The company’s shares still trade -52.24 percent away from its 1-year high of $35.20 and 0.48 percent up from 52-week low of $16.73. The average consensus rating on the company is 2.2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Newfield Exploration Company (NFX) are trading at a P/E ratio of 7.1 times earnings reported for the past 12 months. The industry NFX operates in has an average P/E of 16.71. Its P/E ratio went as low as 5.76X and as high as 63.2 over the 5-year span. Further, it is sporting a 1.41 on the Price-to-Sales ratio. Compare this with the industry average P/S of 99.8. 85.6 percent is the gross profit margin for Newfield Exploration Company and operating margin sits at 40.7 percent. Along with this, the net profit margin is 21.1 percent.

NFX will be showing off its Q4 earnings on February 19. Analysts are forecasting revenue to climb 30.2 percent to $663M in the next fiscal quarter, while earnings are seen soaring by nearly 25.35 percent to $0.89 per share. History has shown that shares in Newfield Exploration Company have gone down on 20 different earnings reaction days and are predicted to add 0.05 percent when the company reports upcoming earnings. In last reported earnings results, it earned $1.01 per share, better than the $0.86, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $709M, better than the $640M analysts expected. Earnings are estimated to increase by 130.2 percent this year, 20.17 percent next year and continue to increase by 30.12 percent annually for the next 5 years.