Tellurian Inc. (TELL): The Clock Is Ticking

How do you judge Wall Street’s opinion of TELL stock? You could look at price, sure. But that doesn’t tell the whole story. Short sellers are getting bullish about Tellurian Inc. (NASDAQ:TELL) during the most recent two-week period. Looking at the sentiment indicator for the TELL stock we see that the short-interest ratio is at 13.31073 while the average analyst recommendations at 2 suggests buying these shares. Between January 15 and January 31, the total number of shorted shares amounted to 28.75 million shares. That was 1.53% less than the total of 29.2 million shares in the space of prior two weeks, which means more traders or funds betting that the stock will go up. Average daily volume for Tellurian Inc. at the January 31st settlement jumped to 2,160,101, as compared to 2,129,054 at the January 15th report. That brought days to cover 2.94% down from the 13.71411 days to cover recorded at the prior short interest data release.

Analysts are forecasting revenue to suffer decline of -47.3 percent to $2.87M in the next fiscal quarter, while earnings are seen soaring by nearly -17.65 percent to -$0.14 per share. History has shown that shares in Tellurian Inc. have gone down on 5 different earnings reaction days and are predicted to add 0.03 percent when the company reports upcoming earnings. In last reported earnings results, it earned -$0.15 per share, worse than the -$0.14, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $720000, worse than the $990000 analysts expected. Earnings are estimated to increase by -163.8 percent this year, -19 percent next year and continue to increase by 50.4 percent annually for the next 5 years.

Tellurian Inc. (TELL) will probably climb 19.41 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $16 price as 12-month high target. This represents a whopping 67.89 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $12, which represents a return potential of 25.92 percent when compared to the closing price of the stock of $9.53 on Wednesday, February 13. The lowest price target for the stock is $6 — slightly more than -37.04 percent from TELL’s current share price.

The stock is currently hovering around the first support level of $9.32. Below this, the next support is placed in the zone of $9.11. Till the time, the TELL stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 60.46 on daily chart, which may remain a cause for concern. If the price breaks below $9.11 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $9.71 mark may result into a pull-back move towards $9.89 level.

On 13th of February, Tellurian Inc. (NASDAQ:TELL) shares ended higher after a volatile session. The shares accumulated 0.35 points or 3.81 percent at $9.53 with a light trade volume of 1.246 million shares. After opening the session at $9.3, the shares went as high as $9.68 and as low as $9.29, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $2.33 billion and now has 244.31 million shares outstanding. Tellurian Inc. (TELL) stock has gained 26.06 percent of market value in 21 trading days.

TELL stock has a trailing 3-year beta of 1.91, 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 -$0.63 a share in the trailing twelve months. The stock’s value has surged 37.12 percent year to date (YTD) against a decline of -6.29 percent in 12 month’s time. The company’s shares still trade -23.45 percent away from its 1-year high of $12.45 and 61.53 percent up from 52-week low of $5.90. The average consensus rating on the company is 2, 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 Tellurian Inc. (TELL) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry TELL operates in has an average P/E of 8.86. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 167.5 on the Price-to-Sales ratio. Compare this with the industry average P/S of 77.24. 6.5 percent is the gross profit margin for Tellurian Inc. and operating margin sits at 0 percent. Along with this, the net profit margin is 0 percent.

Let’s take a look at some insider activity at Tellurian Inc. (NASDAQ:TELL) and see the pattern. The earliest insider trade took place on 12/17/2018. Turkleson Don A gathered a total of 42.32 thousand shares of company at average share price of $6.75. The total for the purchase was set at $285.66 thousand. After this transaction, the Director account balance stood at 172.22 thousand shares. The stock grew 36 percent since that insider purchase. On 12/13/2018, Turkleson Don A, Director, purchased 87.68 thousand shares at a price per share of $6.75. This added 591.84 thousand shares to the insider’s fortune and the stock saw a 36 percent rally in value since the news became public. This transaction left 129.9 thousand shares in the Director account.

On 11/21/2018, Director, 10% Owner Souki Charif performed a purchase transaction worth $145.6 thousand. This purchase at $7.28 each has added 20 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded 26.1 percent increase since the transaction was reported. The insider now is left with 54.6 million shares remaining in the account. Souki Charif, who performs the Director, 10% Owner job, bought 50 thousand shares for $364.5 thousand. The acquisition occurred on 11/20/2018 was priced at $7.29 per share. The share price soared 25.93 percent since the reporting date. Souki Charif now left with a stake of 54.58 million TELL stock worth $520.14 million after the insider buying.