Unit (NYSE:UNT) Shares Gap Down Following Weak Earnings

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Unit Co. (NYSE:UNT)’s share price gapped down prior to trading on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $2.06, but opened at $2.01. Unit shares last traded at $1.04, with a volume of 5,023,407 shares trading hands.

The oil and gas company reported ($0.30) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.24) by ($0.06). The company had revenue of $155.44 million for the quarter, compared to analyst estimates of $160.87 million. Unit had a positive return on equity of 1.31% and a negative net margin of 8.99%. The firm’s quarterly revenue was down 29.4% on a year-over-year basis. During the same quarter last year, the company posted $0.30 earnings per share.

UNT has been the subject of several research analyst reports. Raymond James downgraded shares of Unit from an “outperform” rating to a “market perform” rating in a report on Friday. Zacks Investment Research downgraded shares of Unit from a “hold” rating to a “strong sell” rating in a report on Saturday, October 19th. Finally, ValuEngine upgraded shares of Unit from a “strong sell” rating to a “sell” rating in a report on Tuesday, October 1st. Two research analysts have rated the stock with a sell rating and four have given a hold rating to the company’s stock. The stock has a consensus rating of “Hold” and an average price target of $19.00.

In related news, EVP Frank Q. Young purchased 10,000 shares of the stock in a transaction dated Tuesday, August 13th. The stock was bought at an average cost of $2.74 per share, for a total transaction of $27,400.00. Following the completion of the acquisition, the executive vice president now owns 103,848 shares of the company’s stock, valued at $284,543.52. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. 5.16% of the stock is currently owned by corporate insiders.

A number of hedge funds and other institutional investors have recently bought and sold shares of UNT. Global Alpha Capital Management Ltd. increased its holdings in Unit by 76.9% in the second quarter. Global Alpha Capital Management Ltd. now owns 1,347,491 shares of the oil and gas company’s stock valued at $11,979,000 after purchasing an additional 585,610 shares during the period. Victory Capital Management Inc. increased its holdings in Unit by 10.7% in the second quarter. Victory Capital Management Inc. now owns 3,597,666 shares of the oil and gas company’s stock valued at $31,983,000 after purchasing an additional 348,325 shares during the period. Morgan Stanley increased its holdings in Unit by 135.9% in the second quarter. Morgan Stanley now owns 452,362 shares of the oil and gas company’s stock valued at $4,023,000 after purchasing an additional 260,576 shares during the period. Nuveen Asset Management LLC acquired a new stake in Unit in the second quarter valued at $1,963,000. Finally, First Trust Advisors LP increased its holdings in Unit by 110.4% in the third quarter. First Trust Advisors LP now owns 316,333 shares of the oil and gas company’s stock valued at $1,069,000 after purchasing an additional 165,965 shares during the period. Institutional investors and hedge funds own 86.32% of the company’s stock.

The firm has a market capitalization of $126.07 million, a price-to-earnings ratio of 1.04 and a beta of 2.69. The stock has a fifty day moving average of $2.79 and a two-hundred day moving average of $6.46. The company has a debt-to-equity ratio of 0.48, a current ratio of 0.67 and a quick ratio of 0.67.

About Unit (NYSE:UNT)

Unit Corporation, together with its subsidiaries, engages in the exploration, acquisition, development, and production of oil and natural gas properties in the United States. It operates through three segments: Oil and Natural Gas, Contract Drilling, and Mid-Stream. The Oil and Natural Gas segment explores for, acquires, develops, and produces oil and natural gas properties.

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