Reasons Whiting Petroleum Corporation (WLL) Deserves a Closer Look

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.

Whiting Petroleum Corporation (WLL) is expected to jump by 63.05 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 153.06 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $35.5, which represents a return potential of 49.73 percent when compared to the closing price of the stock of $23.71 on Tuesday, March 12. The lowest price target for the stock is $20 — slightly more than -15.65 percent from WLL’s current share price.

The shares are currently floating around the first support level of $23.32. Below this, the next support is placed in the zone of $22.94. Till the time, the WLL stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 36.94 on daily chart, which may remain a cause for comfort. If the price breaks below $22.94 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $24.13 mark may result into a pull-back move towards $24.56 level.

WLL shares accumulated 0.44 points or 1.89 percent on Tuesday to $23.71 with a light trade volume of 3.72 million shares. After opening the session at $23.5, the shares went as high as $24.17 and as low as $23.36, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $2.29 billion and now has 96.57 million shares outstanding. Whiting Petroleum Corporation (WLL) stock has lost -10.12 percent of market value in 21 trading days.

WLL stock has a trailing 3-year beta of 2.95, 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 $3.73 a share in the trailing twelve months. The stock’s value has surged 4.5 percent year to date (YTD) against a decline of -20.46 percent in 12 month’s time. The company’s shares still trade -58.01 percent away from its 1-year high of $56.47 and 29.07 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 14.33. Its P/E ratio went as low as 12.46X and as high as 62.39 over the 5-year span. Further, it is sporting a 1.1 on the Price-to-Sales ratio. Compare this with the industry average P/S of 99.88. 84 percent is the gross profit margin for Whiting Petroleum Corporation and operating margin sits at 25.8 percent. Along with this, the net profit margin is 16.5 percent.