Parsley Energy, Inc. (PE) Analysts’ Calls on PE Stock Conflict

Analysts at Imperial Capital lifted target price for shares of Parsley Energy, Inc. (NYSE:PE) but repeated their Outperform recommendation for the stock in their opinion released on January 04. The price target has been raised from $45 to $33. Citigroup analysts bumped their recommendation on PE stock from Neutral to Buy in a separate flash note to investors on December 21.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Parsley Energy, Inc. (NYSE:PE)’s prospects. The earliest insider trade took place on 12/04/2018. Windlinger Jerry gathered a total of 3.19 thousand shares of company at average share price of $19.94. The total for the purchase was set at $63.67 thousand. After this transaction, the Director account balance stood at 23.02 thousand shares. The stock lost -6.12 percent since that insider purchase. On 12/04/2018, Brokmeyer Ron, Director, purchased 1 thousand shares at a price per share of $19.99. This added 19.99 thousand shares to the insider’s fortune and the stock saw a -6.35 percent retreat in value since the news became public. This transaction left 23.24 thousand shares in the Director account. On 11/30/2018, Director Alameddine A R performed a purchase transaction worth $20 thousand. This purchase at $20 each has added 1 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -6.4 percent decrease since the transaction was reported. The insider now is left with 123.64 thousand shares remaining in the account. Brokmeyer Ron, who performs the Director job, bought 3 thousand shares for $60.9 thousand. The acquisition occurred on 11/30/2018 was priced at $20.3 per share. The share price plunged -7.78 percent since the reporting date. Brokmeyer Ron now left with a stake of 22.24 thousand PE stock worth $416.31 thousand after the insider buying.

Parsley Energy, Inc. (PE) is expected to jump by 73.34 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $53-month high price target. This represents a whopping 183.12 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $28, which represents a return potential of 49.57 percent when compared to the closing price of the stock of $18.72 on Friday, January 11. The lowest price target for the stock is $19 — slightly more than 1.5 percent from PE’s current share price.

The shares are currently floating around the first support level of $18.35. Below this, the next support is placed in the zone of $17.97. Till the time, the PE stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 54.4 on daily chart, which may remain a cause for concern. If the price breaks below $17.97 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $19.09 mark may result into a pull-back move towards $19.46 level.

PE shares dropped -0.29 points or -1.53 percent on Friday to $18.72 with a light trade volume of 4.88 million shares. After opening the session at $18.74, the shares went as high as $19.09 and as low as $18.345, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $6.02 billion and now has 321.68 million shares outstanding. Parsley Energy, Inc. (PE) stock has gained 5.23 percent of market value in 21 trading days.

PE stock has a trailing 3-year beta of 0.33, 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 $1.43 a share in the trailing twelve months. The stock’s value has surged 17.15 percent year to date (YTD) against a decline of -36.13 percent in 12 month’s time. The company’s shares still trade -44 percent away from its 1-year high of $33.43 and 32.11 percent up from 52-week low of $14.17. The average consensus rating on the company is 1.9, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Parsley Energy, Inc. (PE) are trading at a P/E ratio of 239.99 times earnings reported for the past 12 months. The industry PE operates in has an average P/E of 14.33. Its P/E ratio went as low as 63.54X and as high as 63.54 over the 5-year span. Further, it is sporting a 3.58 on the Price-to-Sales ratio. Compare this with the industry average P/S of 99.85. 86.1 percent is the gross profit margin for Parsley Energy, Inc. and operating margin sits at 40.7 percent. Along with this, the net profit margin is 21.7 percent.