Lonestar Resources US Inc. [NASDAQ: LONE] gained 4.61% on the last trading session, reaching $0.25 price per share at the time. The company report on September 15, 2020 that Lonestar Resources US Inc. Announces Restructuring Support Agreement.
Lonestar Resources US Inc. (the “Company” or “Lonestar”) (NASDAQ: LONE) today announced that it and certain of its direct and indirect wholly-owned domestic subsidiaries (collectively with the Company, the “Debtors”) have entered into a Restructuring Support Agreement (the “Support Agreement”) with its largest stakeholders that will eliminate approximately $390 million in aggregate debt obligations and preferred equity interests.
Under the terms of the Support Agreement, approximately $250 million of the Company’s 11.250% Senior Notes due 2023 (the “Notes”) will be converted to equity and accrued interest thereon will be extinguished. In addition, lenders under the Company’s revolving credit facility who agree to accept the Plan (as defined below) will, among other things, receive their pro rata share of warrants (the “New Warrants”) to purchase up to 10% of the new equity interests in the Company (subject to dilution only by the issuance of new equity interests under a management incentive plan (“MIP Equity”)), revolving loans under the exit revolving credit facility, and term loans under the second-out exit term facility. Holders of preferred equity interests in the Company will receive their pro rata share of 3% of the new equity interests in the Company (subject to dilution by the MIP Equity and the New Warrants) and holders of existing Class A Common Stock in the Company will receive their pro rata share of 1% of the new equity interests in the Company (subject to dilution by the MIP Equity and New Warrants).
Lonestar Resources US Inc. represents 25.31 million in outstanding shares, while the company has a total market value of $6.21 million with the latest information. LONE stock price has been found in the range of $0.246 to $0.268.
If compared to the average trading volume of 1.94M shares, LONE reached a trading volume of 1630211 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about Lonestar Resources US Inc. [LONE]:
Cowen have made an estimate for Lonestar Resources US Inc. shares, keeping their opinion on the stock as Market Perform, with their previous recommendation back on March 11, 2020. The new note on the price target was released on November 13, 2019, representing the official price target for Lonestar Resources US Inc. stock.
The Average True Range (ATR) for Lonestar Resources US Inc. is set at 0.05, with the Price to Sales ratio for LONE stock in the period of the last 12 months amounting to 0.04. Price to Free Cash Flow for LONE in the course of the last twelve months was 0.09 with Quick ratio for the last quarter at 0.10.
Trading performance analysis for LONE stock
Lonestar Resources US Inc. [LONE] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -4.76. With this latest performance, LONE shares dropped by -26.96% in over the last four-week period, additionally sinking by -62.39% over the last 6 months – not to mention a drop of -91.60% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for LONE stock in for the last two-week period is set at 39.04, with the RSI for the last a single of trading hit 39.44, and the three-weeks RSI is set at 40.88 for Lonestar Resources US Inc. [LONE]. The present Moving Average for the last 50 days of trading for this stock 0.3601, while it was recorded at 0.2641 for the last single week of trading, and 0.9677 for the last 200 days.
Lonestar Resources US Inc. [LONE]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Lonestar Resources US Inc. [LONE] shares currently have an operating margin of +21.67 and a Gross Margin at +30.12. Lonestar Resources US Inc.’s Net Margin is presently recorded at -52.79.
Return on Total Capital for LONE is now 6.60, given the latest momentum, and Return on Invested Capital for the company is -19.90. Return on Equity for this stock declined to -59.99, with Return on Assets sitting at -13.67. When it comes to the capital structure of this company, Lonestar Resources US Inc. [LONE] has a Total Debt to Total Equity ratio set at 415.36. Additionally, LONE Total Debt to Total Capital is recorded at 80.60, with Total Debt to Total Assets ending up at 65.79. Long-Term Debt to Equity for the company is recorded at 211.00, with the Long-Term Debt to Total Capital now at 40.94.
Reflecting on the efficiency of the workforce at the company, Lonestar Resources US Inc. [LONE] managed to generate an average of -$1,226,417 per employee. Receivables Turnover for the company is 10.48 with a Total Asset Turnover recorded at a value of 0.26.Lonestar Resources US Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.10 and a Current Ratio set at 0.10.
Lonestar Resources US Inc. [LONE]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, Lonestar Resources US Inc. posted -7/share EPS, while the average EPS was predicted by analysts to be reported at -0.05/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -13,900.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for LONE.
An analysis of insider ownership at Lonestar Resources US Inc. [LONE]
There are presently around $2 million, or 29.30% of LONE stock, in the hands of institutional investors. The top three institutional holders of LONE stocks are: JEFFERIES FINANCIAL GROUP INC. with ownership of 3,978,488, which is approximately 0% of the company’s market cap and around 3.10% of the total institutional ownership; DIMENSIONAL FUND ADVISORS LP, holding 618,398 shares of the stock with an approximate value of $0.16 million in LONE stocks shares; and BRIDGEWAY CAPITAL MANAGEMENT INC, currently with $0.11 million in LONE stock with ownership of nearly -7.639% of the company’s market capitalization.
Positions in Lonestar Resources US Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 14 institutional holders increased their position in Lonestar Resources US Inc. [NASDAQ:LONE] by around 439,943 shares. Additionally, 9 investors decreased positions by around 3,190,543 shares, while 7 investors held positions by with 3,608,134 shares. The mentioned changes placed institutional holdings at 7,238,620 shares, according to the latest SEC report filing. LONE stock had 9 new institutional investments in for a total of 297,259 shares, while 2 institutional investors sold positions of 2,158,719 shares during the same period.