Parsley Energy, Inc. (PE): What’s the Story?

Parsley Energy, Inc. (PE) is an interesting player in the Basic Materials space, with a focus on Independent Oil & Gas. The stock has been active on the tape, currently trading at $29.38, up from yesterday’s close by 0.24%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Parsley Energy, Inc. (PE) currently trades with a market capitalization of $8.91 Billion. That value represents a market adjusting for revenues that have been growing by 99.00 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of -$2.64 Billion over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.23 on a per share basis this quarter. Perhaps, that suggests something about why 8.19% of the outstanding share supply is held by institutional investors.

Technical Analysis

We’ve taken a serious look at this stock from a fundamental perspective, but the tale of the tape may offer more hints about what lies under the surface. Looking at the stock’s movement on the chart, Parsley Energy, Inc. recorded a 52-week high of $32.90. It is now trading 3.52% off that level. The stock is trading $26.01 its 50-day moving average by -3.37%. The stock carved out a 52-week low down at $21.12.

In recent action, Parsley Energy, Inc. (PE) has made a move of +10.58% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 13.41, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 7.78% with $249.00 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of PE.

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