Why Shares of Gran Tierra Energy Inc. (GTE) Plunged Today

Gran Tierra Energy Inc. (NYSE:GTE) is among the top losers of the stock market today, sinking -4.74% or (-0.04 points) to $0.9 from its previous close of $0.94. Does this decline mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 1531682 contracts so far this session. GTE shares had a relatively better volume day versus average trading capacity of 1.91 million shares, but with a 0.36 billion float and a -12.96% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for GTE stock indicates that the average analyst price target is $4.72 per share. This means the stock has a potential increase of 424.44% from where the GTE share price has been trading recently.

During the recent trading session for Gran Tierra Energy Inc. (NYSE:GTE), the company witnessed their stock drop by $-0.1 over a week and tumble down $-0.39 from the price 20 days ago. When compared to their established 52-week high of $2.64, the high they recorded in their recent session happens to be higher. Their established 52-week high was attained by the company on 04/12/19. The recent low of $0.89 stood for a -66.08% since 02/07/20, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 0.74 is also allocated to the stock. Since the beta is less than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for Gran Tierra Energy Inc., the two-week RSI stands at 30.84. This figure suggests that GTE stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current GTE readings is similarly very revealing as it has a stochastic reading of 8.08% at this stage. This figure means that GTE share price today is being overbought.

Technical chart claims that Gran Tierra Energy Inc. (GTE) would settle between $0.97/share to $1/share level. However, if the stock price goes below the $0.91 mark, then the market for Gran Tierra Energy Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $0.89 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.05. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at National Bank Financial, assumed coverage of GTE assigning Sector Perform rating, according to their opinion released on October 11. RBC Capital Mkts analysts have lowered their rating of Gran Tierra Energy Inc. (NYSE:GTE) stock from Top Pick to Outperform in a separate flash note issued to investors on May 21. Analysts at Credit Suisse released an upgrade from Neutral to Outperform for the stock, in a research note that dated back to February 10.

GTE equity has an average rating of 2, with the figure leaning towards a bullish end. 7 analysts who tracked the company were contacted by Reuters. Amongst them, 2 rated the stock as a hold while the remaining 5 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while no rated it as a sell. 5 analysts rated Gran Tierra Energy Inc. (NYSE:GTE) as a buy or a strong buy while not a single analyst advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, GTE stock price is currently trading at 5.8X forward 12-month Consensus EPS estimates, and its P/E ratio is 0 while for the average stock in the same group, the multiple is 14. Gran Tierra Energy Inc. current P/B ratio of 0.3 means it is trading at a discount against its industry’s 1.2.