About to Buy Whiting Petroleum Corporation (WLL)? Look at These Metrics First

Analysts at KeyBanc Capital Markets, assumed coverage of Whiting Petroleum Corporation (NYSE:WLL) with Overweight recommendation, according to their opinion released on February 12.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Whiting Petroleum Corporation (NYSE:WLL)’s prospects. The earliest insider trade took place on 11/07/2018. Hahne William N parted with a total of 2.3 thousand shares of company at average share price of $36.85. The total for the sales was set at $84.76 thousand. After this transaction, the Director account balance stood at 20.91 thousand shares. The stock lost -23.66 percent since that insider sale. On 10/01/2018, Stevens Michael J, SVP and CFO, sold 12.48 thousand shares at a price per share of $55.04. This removed 686.68 thousand shares from the insider’s fortune and the stock saw a -48.89 percent retreat in value since the news became public. This transaction left 84.1 thousand shares in the SVP and CFO account. On 10/01/2018, Senior Vice President Ross Rick A Mr. performed a sale transaction worth $114.37 thousand. This sale at $55.01 each has eliminated 2.08 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -48.86 percent decrease since the transaction was reported. The insider now is left with 71.46 thousand shares remaining in the account. Catlin James E, who performs the Director job, sold 8.63 thousand shares for $435.61 thousand. The disposal occurred on 09/06/2018 was priced at $50.5 per share. The share price plunged -44.3 percent since the reporting date. Catlin James E now left with a stake of 72.41 thousand WLL stock worth $2.04 million after the insider selling.

Whiting Petroleum Corporation (WLL) is expected to jump by 44.97 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $60-month high price target. This represents a whopping 113.3 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $37, which represents a return potential of 31.53 percent when compared to the closing price of the stock of $28.13 on Tuesday, February 26. The lowest price target for the stock is $20 — slightly more than -28.9 percent from WLL’s current share price.

The shares are currently floating around the first support level of $27.76. Below this, the next support is placed in the zone of $27.38. Till the time, the WLL stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 52.93 on daily chart, which may remain a cause for concern. If the price breaks below $27.38 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $28.78 mark may result into a pull-back move towards $29.42 level.

WLL shares dropped -0.21 points or -0.74 percent on Tuesday to $28.13 with a heavy trade volume of 4.941 million shares. After opening the session at $28.3, the shares went as high as $29.05 and as low as $28.03, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $2.56 billion and now has 90.99 million shares outstanding. Whiting Petroleum Corporation (WLL) stock has lost -1.51 percent of market value in 21 trading days.

WLL stock has a trailing 3-year beta of 3.03, 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 -$6.44 a share in the trailing twelve months. The stock’s value has surged 23.98 percent year to date (YTD) against a decline of -2.22 percent in 12 month’s time. The company’s shares still trade -50.19 percent away from its 1-year high of $56.47 and 53.13 percent up from 52-week low of $18.37. The average consensus rating on the company is 2.2, 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 Whiting Petroleum Corporation (WLL) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry WLL operates in has an average P/E of 4.57. Its P/E ratio went as low as 20.22X and as high as 62.39 over the 5-year span. Further, it is sporting a 1.23 on the Price-to-Sales ratio. Compare this with the industry average P/S of 74. 80.6 percent is the gross profit margin for Whiting Petroleum Corporation and operating margin sits at -30.2 percent. Along with this, the net profit margin is -31.7 percent.

WLL will be showing off its Q4 earnings. Analysts are forecasting revenue to climb 4.7 percent to $497M in the next fiscal quarter, while earnings are seen soaring by nearly -411.76 percent to $0.53 per share. History has shown that shares in Whiting Petroleum Corporation have gone down on 19 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 $0.92 per share, better than the $0.58, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $567M, better than the $521M analysts expected. Earnings are estimated to increase by 39.8 percent this year, -54.33 percent next year and continue to increase by 0 percent annually for the next 5 years.