It’s Time to Stop Overlooking Range Resources Corporation (RRC)

Analysts at KeyBanc Capital Mkts, assumed coverage of Range Resources Corporation (NYSE:RRC) with Sector Weight recommendation, according to their opinion released on January 08. BofA/Merrill analysts have downgraded their rating of RRC stock from Neutral to Underperform in a separate flash note to investors on January 04. Analysts at CapitalOne downgraded the stock to a Equal Weight call from its previous Overweight stance, in a research note that dated back to December 20.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Range Resources Corporation (NYSE:RRC)’s prospects. The earliest insider trade took place on 09/06/2018. Sailingstone Capital Partners gathered a total of 0.48 thousand shares of company at average share price of $14.9. The total for the purchase was set at $7.2 thousand. After this transaction, the 10% Owner account balance stood at 68.89 thousand shares. The stock lost -22.82 percent since that insider purchase. On 07/09/2018, Poole David P, Sr. VP & General Counsel, sold 3.83 thousand shares at a price per share of $17.54. This removed 67.16 thousand shares from the insider’s fortune and the stock saw a -34.44 percent retreat in value since the news became public. This transaction left 163.54 thousand shares in the Sr. VP & General Counsel account. On 07/09/2018, President and CEO Ventura Jeffrey L performed a sale transaction worth $153.77 thousand. This sale at $17.54 each has eliminated 8.77 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -34.44 percent decrease since the transaction was reported. The insider now is left with 1.07 million shares remaining in the account. Ginn Dori, who performs the SVP, Principal Accting Officer job, sold 1.43 thousand shares for $23.49 thousand. The disposal occurred on 06/01/2018 was priced at $16.38 per share. The share price plunged -29.79 percent since the reporting date. Ginn Dori now left with a stake of 63.19 thousand RRC stock worth $726.7 thousand after the insider selling.

Range Resources Corporation (RRC) is expected to jump by 53.3 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $40-month high price target. This represents a whopping 247.83 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $17.5, which represents a return potential of 52.17 percent when compared to the closing price of the stock of $11.5 on Friday, January 11. The lowest price target for the stock is $7 — slightly more than -39.13 percent from RRC’s current share price.

The shares are currently floating around the first support level of $11.22. Below this, the next support is placed in the zone of $10.94. Till the time, the RRC stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 45.31 on daily chart, which may remain a cause for concern. If the price breaks below $10.94 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $11.69 mark may result into a pull-back move towards $11.87 level.

RRC shares accumulated 0.06 points or 0.52 percent on Friday to $11.5 with a light trade volume of 5.347 million shares. After opening the session at $11.28, the shares went as high as $11.595 and as low as $11.13, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $2.85 billion and now has 248.2 million shares outstanding. Range Resources Corporation (RRC) stock has lost -13.14 percent of market value in 21 trading days.

RRC stock has a trailing 3-year beta of 1.14, 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 -$0.4 a share in the trailing twelve months. The stock’s value has surged 20.17 percent year to date (YTD) against a decline of -31.47 percent in 12 month’s time. The company’s shares still trade -38.16 percent away from its 1-year high of $18.59 and 24.73 percent up from 52-week low of $9.22. The average consensus rating on the company is 2.5, 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 Range Resources Corporation (RRC) are trading at a P/E ratio of 291.87 times earnings reported for the past 12 months. The industry RRC operates in has an average P/E of 14.33. Its P/E ratio went as low as 14.09X and as high as 803.04 over the 5-year span. Further, it is sporting a 0.95 on the Price-to-Sales ratio. Compare this with the industry average P/S of 99.85. 83.1 percent is the gross profit margin for Range Resources Corporation and operating margin sits at 17.5 percent. Along with this, the net profit margin is 2.2 percent.