RPC (NYSE:RES) Shares Gap Down – Time to Sell?

Shares of RPC, Inc. (NYSE:RES) gapped down prior to trading on Thursday. The stock had previously closed at $6.73, but opened at $5.75. RPC shares last traded at $6.5750, with a volume of 201,063 shares trading hands.

More RPC News

Here are the key news stories impacting RPC this week:

• Positive Sentiment: RPC reported third-quarter revenue of $467.7 million, up approximately 1% sequentially and 4.6% year over year. Adjusted EBITDA was $71.5 million, with a 15.3% margin, while Technical Services and Support Services revenue both increased. RPC Third-Quarter Financial Results
• Positive Sentiment: The company declared a regular quarterly dividend of $0.04 per share, payable December 10 to shareholders of record on November 10. The annualized payout is $0.16 per share, representing a yield of roughly 2.5% based on the reported share price. RPC Dividend Announcement
• Neutral Sentiment: Adjusted earnings were reported at $0.10 per share, broadly in line with analyst expectations, although revenue of $467.7 million was slightly below the $469.1 million consensus estimate. The results showed modest growth but did not provide a major upside surprise. RPC Q3 Earnings Report
• Negative Sentiment: RPC recorded a $41.9 million net loss, or $0.20 per diluted share, after taking a $74.5 million non-cash impairment charge tied to its Pintail wireline business. Although the charge does not directly reduce cash, it signals weaker asset values and is the primary reason for the negative market reaction. RPC Pintail Impairment Report

Analysts Set New Price Targets

Several analysts have commented on RES shares. Susquehanna decreased their price objective on shares of RPC from $7.50 to $6.00 and set a “neutral” rating for the company in a research note on Wednesday, July 8th. Weiss Ratings lowered shares of RPC from a “hold (c)” rating to a “hold (c-)” rating in a research note on Wednesday, September 16th. Finally, Evercore cut shares of RPC to an “outperform” rating in a report on Friday. One research analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, RPC presently has an average rating of “Hold” and a consensus price target of $6.00.

RPC Stock Down 3.3%

The company has a quick ratio of 2.76, a current ratio of 3.52 and a debt-to-equity ratio of 0.02. The stock has a market cap of $1.37 billion, a PE ratio of -36.29 and a beta of 0.86. The business has a 50 day moving average price of $6.15 and a 200 day moving average price of $6.37.

RPC (NYSE:RES) last released its quarterly earnings data on Thursday, October 29th. The oil and gas company reported $0.10 EPS for the quarter, hitting the consensus estimate of $0.10. The business had revenue of $467.74 million for the quarter, compared to analyst estimates of $469.12 million. RPC had a positive return on equity of 5.26% and a negative net margin of 1.77%. The business’s quarterly revenue was up 4.6% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.09 EPS. Equities research analysts expect that RPC, Inc. will post 0.26 EPS for the current fiscal year.

RPC Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Tuesday, November 10th will be issued a $0.04 dividend. The ex-dividend date of this dividend is Tuesday, November 10th. This represents a $0.16 dividend on an annualized basis and a yield of 2.6%. RPC’s payout ratio is presently -94.12%.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of RES. Bridge City Capital LLC grew its stake in RPC by 21.5% in the 3rd quarter. Bridge City Capital LLC now owns 442,716 shares of the oil and gas company’s stock valued at $2,492,000 after acquiring an additional 78,265 shares during the period. Vise Technologies Inc. acquired a new position in RPC during the third quarter worth $114,000. State of Wyoming raised its position in RPC by 272.0% during the third quarter. State of Wyoming now owns 34,429 shares of the oil and gas company’s stock worth $194,000 after acquiring an additional 25,175 shares during the period. SummerHaven Investment Management LLC acquired a new position in RPC during the third quarter worth $745,000. Finally, USA Financial Formulas purchased a new position in RPC during the third quarter valued at $40,000. Institutional investors and hedge funds own 41.06% of the company’s stock.

About RPC

RPC, Inc (NYSE: RES) is an oilfield services company that provides specialized equipment and services to energy producers and exploration and production companies. Its offerings support the drilling, completion, production and maintenance of oil and natural gas wells.

The company’s services include pressure pumping, coiled tubing, well control, nitrogen services, downhole tools, well testing, fishing and rental equipment. These services are used in activities such as hydraulic fracturing, well intervention, workover operations and production enhancement.

RPC was founded in 1984 and is headquartered in Atlanta, Georgia.