The Long-Term Prognosis for Continental Resources, Inc. (CLR)

Analysts at Mizuho, assumed coverage of Continental Resources, Inc. (NYSE:CLR) with Buy recommendation, according to their opinion released on January 30. Citigroup analysts bumped their recommendation on CLR stock from Neutral to Buy in a separate flash note to investors on December 21. Analysts at CapitalOne issued an upgrade from Equal Weight to Overweight for the stock, 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 Continental Resources, Inc. (NYSE:CLR)’s prospects. The earliest insider trade took place on 09/25/2018. Gould Gary E parted with a total of 5 thousand shares of company at average share price of $67. The total for the sales was set at $335 thousand. After this transaction, the SVP, Prod. & Res. Dev. account balance stood at 169.13 thousand shares. The stock lost -34.13 percent since that insider sale. On 05/29/2018, Hamm Harold, CEO & Chairman, 10% Owner, purchased 136 thousand shares at a price per share of $65.3. This added 8.88 million shares to the insider’s fortune and the stock saw a -32.42 percent retreat in value since the news became public. This transaction left 285 million shares in the CEO & Chairman, 10% Owner account. On 05/22/2018, Sr. VP & CFO Hart John D performed a sale transaction worth $696 thousand. This sale at $69.6 each has eliminated 10 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -36.59 percent decrease since the transaction was reported. The insider now is left with 309.65 thousand shares remaining in the account. Eissenstat Eric Spencer, who performs the SVP, GC, CRO & Secretary job, sold 10 thousand shares for $695 thousand. The disposal occurred on 05/22/2018 was priced at $69.5 per share. The share price plunged -36.5 percent since the reporting date. Eissenstat Eric Spencer now left with a stake of 159.9 thousand CLR stock worth $7.07 million after the insider selling.

Continental Resources, Inc. (CLR) is expected to jump by 40.76 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $88 price as 12-month high target. This represents a whopping 98.96 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $59, which represents a return potential of 33.39 percent when compared to the closing price of the stock of $44.23 on Monday, February 11. The lowest price target for the stock is $33 — slightly more than -25.39 percent from CLR’s current share price.

The shares are currently floating around the first support level of $43.59. Below this, the next support is placed in the zone of $42.96. Till the time, the CLR stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 41.86 on daily chart, which may remain a cause for concern. If the price breaks below $42.96 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $44.72 mark may result into a pull-back move towards $45.22 level.

CLR shares accumulated 0.1 points or 0.23 percent on Monday to $44.23 with a light trade volume of 2.453 million shares. After opening the session at $43.67, the shares went as high as $44.58 and as low as $43.45, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $16.8 billion and now has 378.91 million shares outstanding. Continental Resources, Inc. (CLR) stock has lost -6.03 percent of market value in 21 trading days.

CLR stock has a trailing 3-year beta of 1.5, 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 $2.45 a share in the trailing twelve months. The stock’s value has surged 10.05 percent year to date (YTD) against a decline of -9.75 percent in 12 month’s time. The company’s shares still trade -38.53 percent away from its 1-year high of $71.95 and 24.45 percent up from 52-week low of $35.54. 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 Continental Resources, Inc. (CLR) are trading at a P/E ratio of 18.03 times earnings reported for the past 12 months. The industry CLR operates in has an average P/E of 8.71. Its P/E ratio went as low as 14.55X and as high as 261.22 over the 5-year span. Further, it is sporting a 3.64 on the Price-to-Sales ratio. Compare this with the industry average P/S of 77.53. 92.2 percent is the gross profit margin for Continental Resources, Inc. and operating margin sits at 34 percent. Along with this, the net profit margin is 35.4 percent.

CLR will be showing off its Q4 earnings on February 18. Analysts are forecasting revenue to climb 12.8 percent to $1.18B in the next fiscal quarter, while earnings are seen soaring by nearly 48.78 percent to $0.61 per share. History has shown that shares in Continental Resources, Inc. have gone down on 21 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 $0.9 per share, better than the $0.82, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $1.28B, better than the $1.22B analysts expected. Earnings are estimated to increase by 118.8 percent this year, -20.41 percent next year and continue to increase by 0 percent annually for the next 5 years.