Why Shares of Lonestar Resources US Inc. (LONE) Surged Today

Lonestar Resources US Inc. (NASDAQ:LONE) is among the top gainers of the stock market today, skyrocketing 12.53% or (0.06 points) to $0.52 from its previous close of $0.46. Does this growth mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 103458 contracts so far this session. LONE shares had a relatively better volume day versus average trading capacity of 131.84 thousand shares, but with a 20.57 million float and a -28.73% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for LONE stock indicates that the average analyst price target is $6.5 per share. This means the stock has a potential increase of 1150% from where the LONE share price has been trading recently.

During the recent trading session for Lonestar Resources US Inc. (NASDAQ:LONE), the company witnessed their stock drop by $-0.1597 over a week and tumble down $-0.6297 from the price 20 days ago. When compared to their established 52-week high of $4.6772, the high they recorded in their recent session happens to be higher. Their established 52-week high was attained by the company on 10/04/19. The recent low of $0.36 stood for a -88.98% since 03/23/20, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 2.66 is also allocated to the stock. Since the beta is greater 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 Lonestar Resources US Inc., the two-week RSI stands at 31.6. This figure suggests that LONE 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 LONE readings is similarly very revealing as it has a stochastic reading of 12.22% at this stage. This figure means that LONE share price today is being overbought.

Technical chart claims that Lonestar Resources US Inc. (LONE) would settle between $0.5387/share to $0.6193/share level. However, if the stock price goes below the $0.4137 mark, then the market for Lonestar Resources US Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $0.3693 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.1206. 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 Cowen lowered their recommendation on shares of LONE from Outperform to Market Perform in their opinion released on March 11. SunTrust analysts have lowered their rating of Lonestar Resources US Inc. (NASDAQ:LONE) stock from Buy to Hold in a separate flash note issued to investors on November 13. Analysts at Seaport Global Securities lowered the stock to a Neutral call from its previous Buy recommendation, in a research note that dated back to October 10.

LONE equity has an average rating of 2.2, with the figure leaning towards a bullish end. 5 analysts who tracked the company were contacted by Reuters. Amongst them, 4 rated the stock as a hold while the remaining 1 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. 1 analysts rated Lonestar Resources US Inc. (NASDAQ:LONE) 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, LONE stock price is currently trading at 0X forward 12-month Consensus EPS estimates, and its P/E ratio is 0.3 while for the average stock in the same group, the multiple is 81.9. Lonestar Resources US Inc. current P/B ratio of 0.1 means it is trading at a discount against its industry’s 0.5.

Lonestar Resources US Inc. (LONE)’s current-quarter revenues are projected to climb by nearly 128.4% to hit $30.68 million, based on current consensus estimate. The firm’s full-year revenues are expected to expand by over 61.8% from $57.97 million to a noteworthy $93.81 million. At the other end of the current quarter income statement, Lonestar Resources US Inc. is expected to see its adjusted earnings surge by roughly 99.4% to hit $-0.04 per share. For the fiscal year, LONE’s earnings are projected to climb by roughly 93% to hit $-0.82 per share.