Where Have All the Alta Mesa Resources, Inc. (AMR) Bulls Gone?

Alta Mesa Resources, Inc. (NASDAQ:AMR) short sellers believe it will decline in price. The most recent short interest data has been released for the January 31st settlement date, which shows a 5,877 share increase in total short interest for AMR, to 12,935,096, a surge of 0.05% since January 15th. Average daily volume for Alta Mesa Resources, Inc. at the January 31st settlement plunged to 1,164,203, as compared to 1,637,760 at the January 15th report. That brought days to cover to 11.11069, a 40.74% increase from the 7.894453 days to cover recorded at the prior short interest data release. You could look at analyst ratings. The average analyst recommendations at 2 suggests buying these shares. But the opinions of a small number of people, though sometimes influential, doesn’t always speak for the hundreds of thousands of traders on Wall Street.

Alta Mesa Resources, Inc. (AMR) will probably climb 365.31 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $6 price as 12-month high target. This represents a whopping 512.24 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $3.8, which represents a return potential of 287.76 percent when compared to the closing price of the stock of $0.98 on Wednesday, February 13. The lowest price target for the stock is $1.25 — slightly more than 27.55 percent from AMR’s current share price.

The stock is currently hovering around the first support level of $0.88. Below this, the next support is placed in the zone of $0.78. Till the time, the AMR stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 46.76 on daily chart, which may remain a cause for concern. If the price breaks below $0.78 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $1.05 mark may result into a pull-back move towards $1.11 level.

On 13th of February, Alta Mesa Resources, Inc. (NASDAQ:AMR) shares ended higher after a volatile session. The shares accumulated 0.16 points or 19.11 percent at $0.98 with a light trade volume of 1.81 million shares. After opening the session at $0.89, the shares went as high as $1.015 and as low as $0.85, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $188 million and now has 191.06 million shares outstanding. Alta Mesa Resources, Inc. (AMR) stock has lost -16.75 percent of market value in 21 trading days.

AMR stock has a trailing 3-year beta of 0, 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 -$0.11 a share in the trailing twelve months. The stock’s value has fallen -1.76 percent year to date (YTD) against a decline of -88.62 percent in 12 month’s time. The company’s shares still trade -88.84 percent away from its 1-year high of $8.80 and 30.99 percent up from 52-week low of $0.75. 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 Alta Mesa Resources, Inc. (AMR) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry AMR operates in has an average P/E of 14.33. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 0.56 on the Price-to-Sales ratio. Compare this with the industry average P/S of 99.86. 66.5 percent is the gross profit margin for Alta Mesa Resources, 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 Alta Mesa Resources, Inc. (NASDAQ:AMR) and see the pattern. The earliest insider trade took place on 09/07/2018. Bayou City Energy Management L gathered a total of 311.11 thousand shares of company at average share price of $4.73. The total for the purchase was set at $1.47 million. After this transaction, the Director, 10% Owner account balance stood at 4.13 million shares. The stock lost -82.66 percent since that insider purchase. On 08/30/2018, Bayou City Energy Management L, Director, 10% Owner, purchased 422 thousand shares at a price per share of $4.89. This added 2.06 million shares to the insider’s fortune and the stock saw a -83.23 percent retreat in value since the news became public. This transaction left 3.82 million shares in the Director, 10% Owner account.

On 08/21/2018, Director, 10% Owner Bayou City Energy Management L performed a purchase transaction worth $14.76 million. This purchase at $4.34 each has added 3.4 million shares into the insider’s portfolio position. Meanwhile, shares have recorded -81.11 percent decrease since the transaction was reported. The insider now is left with 3.4 million shares remaining in the account. Smith Ronald Jay, who performs the VP & CAO job, bought 0.25 thousand shares for $1.84 thousand. The acquisition occurred on 04/13/2018 was priced at $7.35 per share. The share price plunged -88.84 percent since the reporting date. Smith Ronald Jay now left with a stake of 23.84 thousand AMR stock worth $23.36 thousand after the insider buying.