Shares of Legacy Reserves Inc. (NASDAQ:LGCY) recorded -58.13% loss during trading session on March 14th, 2019. The script traded as low as $0.5801 and last traded at $0.58. 7.51 million shares changed exchanged hands during trading, a drop of -636.46% from the 30-day average session volume of 1.02M shares. The firm had previously closed at $1.39. The company has $110.73M outstanding shares, price-to-earnings-growth ratio of 0.12 and a beta of 1.76. The company has a RSI of 24.71, ATR of 0.18 and a volatility of 27.01% this week. LGCY has a 52 week low price of $1.12 and a 52 week high price of $10.54.
Investors have identified the tech company Legacy Reserves Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around 64.44M, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Legacy Reserves Inc. (LGCY) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For LGCY, the company has in raw cash 5.95 million on their books with 119.09 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 0 total, with 30.81 million as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
LGCY were able to record 3.47 million as free cash flow during the recently reported quarter of the year, this saw their quarterly net cash flow reduce by 4.7 million. In cash movements, the company had a total of 114.98 million as operating cash flow.
Potential earnings growth for Legacy Reserves Inc. (LGCY)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Legacy Reserves Inc. recorded a total of 139.28 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 0.33% coming in sequential stages and their sales for the third quarter increasing by 0.01%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 57.09 million trying to sell their products during the last quarter, with the result yielding a gross income of 82.19 million. This allows shareholders to hold on to 110.73M with the revenue now reading -660 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.03 cents a share).
Is the stock of LGCY attractive?
Having a look at the company’s valuation, the company is expected to record 0.19 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on LGCY sounds very interesting.
In related news, 10% Owner Baines Creek Capital, LLC bought 51,991 shares of the company’s stock in a transaction that recorded on September 18th, 2019. The purchase was performed at an average price of 4.94, for a total value of 256,836. As the purchase deal closes, the 10% Owner Baines Creek Capital, LLC now bought 71,632 shares of the company’s stock, valued at 385,380. Also, 10% Owner Baines Creek Capital, LLC bought 10,650 shares of the company’s stock in a deal that was recorded on September 10th, 2019. The shares were bought at an average cost of 5.42 per share, with a total market value of 15,109,703. Following this completion of disposal, the 10% Owner now holds 45,169 shares of the company’s stock, valued at 230,814. In the last 6 months, insiders have changed their ownership in shares of company stock by 6.40%.
0 out of 1 analysts covering the stock have rated it a Buy, while 1 have maintained a Hold recommendation on Legacy Reserves Inc. stock. 0 analysts has assigned a Sell rating on the LGCY stock. The 12-month mean consensus price target for the company’s shares has been set at $2.00.