News Roundup: Meritor (NYSE:MTOR), Vivint Solar (NYSE:VSLR), Vanguard Natural Resources, LLC (NASDAQ:VNR)

Vivint Solar Inc (NYSE:VSLR) climbed 8.93% during last trading as the stock added $0.25 to finish the day at $3.05 with about 1.16M shares changing hands, compared to its three month average trading volume of 1.82M. The $ 342.82M market cap company, which fluctuated between $2.81 and $3.08 during the day, currently situated 41.20% above its 52 week low of $2.16 and -80.94% away from its one year high of $16.00. The RSI of 49.27 indicates the stock is overbought at the current levels, sell for now.

Vivint Solar, Inc. primarily offers distributed solar energy, which is electricity generated by a solar energy system installed at or near customers’ locations to residential customers based on over 20-year contracts. The Company operates through two operating segments: Residential, and commercial and industrial market (C&I).

Vanguard Natural Resources, LLC (NASDAQ:VNR) gained $0.11 to close the day at a new closing price of $1.35, a 8.87% increase in value from its previous closing price that moved the stock 26.17% above its 52 week low of $1.07. A total of 2.00M shares exchanged hands during the day compared with its three month average trading volume of 1.06M. The stock, which fluctuated between $1.24 and $1.43 during the day, currently situated -51.39% below its 52 week high. The stock is down by -20.70% in the past one month and down by -13.03% over the past three months. With a one year target estimate of $8.79 and RSI of 34.87, the stock still has upside potential, making it a hold for now.

Vanguard Natural Resources, LLC is focused on the acquisition and development of oil and natural gas properties in the United States. Through its operating subsidiaries, the Company owns properties, and oil and natural gas reserves primarily located in over 10 operating basins: the Green River Basin in Wyoming; the Permian Basin in West Texas and New Mexico; the Gulf Coast Basin in Texas, Louisiana, Mississippi and Alabama; the Anadarko Basin in Oklahoma and North Texas; the Piceance Basin in Colorado; the Big Horn Basin in Wyoming and Montana; the Arkoma Basin in Arkansas and Oklahoma; the Williston Basin in North Dakota and Montana; the Wind River Basin in Wyoming, and the Powder River Basin in Wyoming.

Meritor Inc (NYSE:MTOR) had a light trading with around 2.05M shares changing hands compared to its three month average trading volume of 1.05M. The stock traded between $6.55 and $7.10 before closing at the price of $7.01 with 8.85% change on the day. The company is currently trading 23.20% above its 52 week low of $6.55 and 7.10% above its 52 week high of $14.42. Both the RSI indicator and target price of 34.87 and $8.79 respectively, lead us to believe that it could drop over the coming weeks.

Meritor, Inc. is engaged in the development, manufacture, sale, assembly, distribution, import and export of movement control systems for buses, trailers and trucks and their parts and components. It serves commercial truck, trailer, bus and coach and off-highway machinery manufacturers. The Company’s segments include commercial truck and industrial, and aftermarket and trailer.

Analysts: Vanguard Natural Resources, LLC (NASDAQ:VNR)

Analysts are weighing in on how Vanguard Natural Resources, LLC (NASDAQ:VNR), might perform in the near term. Wall Street analysts have a unfavorable assessment of the stock, with a mean rating of 3.1. The stock is rated as buy by 0 analysts, with 0 outperform and 0 hold rating. The rating score is on a scale of 1 to 5 where 1 stands for strong buy and 5 stands for strong sell.

For the current quarter, the 8.00 analysts offering adjusted EPS forecast have a consensus estimate of $0.06 a share, which would compare with $-0.07 in the same quarter last year. They have a high estimate of $0.21 and a low estimate of $-0.18. Revenue for the period is expected to total nearly $155.47M from $75.04M the year-ago period.

For the full year, 6.00 Wall Street analysts forecast this company would deliver earnings of 0.35 per share, with a high estimate of $0.99 and a low estimate of $-0.75. It had reported earnings per share of $0.78 in the corresponding quarter of the previous year. Revenue for the period is expected to total nearly $593.73M versus 566.64M in the preceding year.

The analysts project the company to maintain annual growth of around 22.70% percent over the next five years as compared to an average growth rate of 8.79% percent expected for its competitors in the same industry.

Among the 7 analysts Data provided by Thomson/First Call tracks, the 12-month average price target for VNR is $2.00 but some analysts are projecting the price to go as high as $4.00. If the optimistic analysts are correct, that represents a 245 percent upside potential from the recent closing price of $1.16. Some sell-side analysts, particularly the bearish ones, have called for $1.00 price targets on shares of Vanguard Natural Resources, LLC (NASDAQ:VNR).

In the last reported results, the company reported earnings of $-0.07 per share, while analysts were calling for share earnings of $0.06. It was an earnings surprise of -216.70%percent. In the matter of earnings surprises, the term Cockroach Effect is often implied. Cockroach Effect is a market theory that suggests that when a company reveals bad news to the public, there may be many more related negative events that have yet to be revealed. In the case of earnings surprises, if a company is suggesting a negative earnings surprise it means there are more to come.

Vanguard Natural Resources, LLC, through its subsidiaries, acquires and develops oil and natural gas properties in the United States. It owns properties, and oil and natural gas reserves primarily located in 10 operating basins, including the Green River Basin in Wyoming; the Permian Basin in West Texas and New Mexico; the Gulf Coast Basin in Texas, Louisiana, Mississippi, and Alabama; the Anadarko Basin in Oklahoma and North Texas; the Piceance Basin in Colorado; the Big Horn Basin in Wyoming and Montana; the Arkoma Basin in Arkansas and Oklahoma; the Williston Basin in North Dakota and Montana; the Wind River Basin in Wyoming; and the Powder River Basin in Wyoming. As of December 31, 2015, the company had total estimated proved reserves of 2,289.3 million barrels of oil equivalent, as well as owned working interests in 14,459 gross productive wells and approximately 881,508 gross undeveloped acres. Vanguard Natural Resources, LLC was founded in 2006 and is headquartered in Houston, Texas.

Vanguard Natural Resources, LLC (NASDAQ:VNR) Upcoming Earnings: What matter for investors?

Vanguard Natural Resources, LLC (VNR) retreated -11.45% to reach at the floor price of $1.16 as the company is set to share its next quarterly earnings on August 01, 2016. VNR stock trades between $1.09 and $1.3 before the earnings release. Let’s take a closer look at the June 2016 earnings estimates, particularly the things investors should pay close attention to. Earnings (EPS) for the recently concluded quarter is projected to come in at $0.06/share with $155.47M in revenue.

Earnings Track Record: If history is anything to go by, Vanguard Natural Resources, LLC (VNR) managed to beat quarterly EPS forecasts in 4 of the trailing three fiscal years, and has a positive trend with an average surprise of 33%. Last time the company reported, Vanguard Natural Resources, LLC generated $0.07 in earnings per share, surpassing the mean forecast of $0.04. Revenues reached $113.2M in the March 2016 quarter, which was lower than the consensus $169.7M projection. On the other hand, in the December 2015 quarter it recorded a net $178.52M revenue with EPS of $0.49. Wall Street had projected $209.26M and $0.16, respectively. For comparison, there was a revenue of $155.15M and earnings of $0.02 in the September 2015 quarter.

Future Earnings: After upcoming financial results, all eyes will be on the outlook or guidance for the next reporting quarter (September 2016). Analysts, on average, predict Vanguard Natural Resources, LLC to earn $0.12 in earnings per share (EPS) on revenue of $155.47M. The earnings-per-share consensus range is -$0.17-$0.31 on sales between $141.11M and $168M.

Stock Trend vs. Analyst View: The stock is trading down -7.22 percent versus 1-year low of $1.09 and stands -91.63 lower from its peak of $15.65. The consensus price target of $2 means that the market expects Company shares to increase by 72.41% in the short run. The sell-side target prices range from $1 to $4. In the last month the stock has moved in price -24.68%, with a one year change of -91.26%. The last trading session volume compares with the 2.11M average and market worth floats around $172.12M.

Recent Analyst Rating Changes: The buoyancy in the prospect of Vanguard Natural Resources, LLC (VNR) is getting weaker by the somewhat negative sentiment (3.1 on a 5-point scale) that brokerage firms have issued concerning it. Wall Street analysts on the average recommend the company shares as Hold. Stifel has been covering shares of VNR, so it’s most recent view is worth a look. In a research note released on May 27, 2016, analysts at Stifel lifted the stock to Hold from Sell.  Another noteworthy analyst activity was recorded on March 14, 2016. Raymond James analysts lifted the stock to Mkt Perform from Underperform.

 

Vanguard Natural Resources, LLC (NASDAQ:VNR) at $1.49: How much higher it can go

Vanguard Natural Resources, LLC (VNR) up 3.47 per cent in the past week, is under coverage of 11 analysts who collectively recommend a sell rating on stock. 1 of the analysts have a buy or better rating; the 1 sells versus 2 underperforms. The 8 equity analysts who rate the stock have an average target price at $3.25, with individual targets ranging between $1 and $12. The shares closed last trade at $1.49, implying that analysts see shares rising about 118.12 per cent in 12 months’ time.

Insider Activity: Insiders look optimistic about the prospects of the company that they seem to accumulate shares while they are -48.41 down so far this year. A Executive VP and CFO at Vanguard Natural Resources, LLC (VNR) purchased shares in the company in a transaction completed on Wednesday March 25, 2015. Robert Richard A accumulated 20,610 shares in the company at an average price of $14.22 and ended up spending $293,070 in the investment. Robert Richard A now have 436,506 shares in the company after this transaction. A Executive VP, Operations in the company, Pence Britt, on Wednesday March 25, 2015 spent $299,170 from the purchase of 21,039 shares at $14.22 each. Insiders are expected to know better about the health and prospects of their company, which is why insiders’ move deserves attention.

Earnings to Watch: Investors considering VNR stock at the going market price of $1.49/share should know the stock will next release quarterly results for the June 2016 quarter. For the reporting quarter, analysts expect the company to deliver $0.07 in earnings per share (EPS). That would represent a -200% year-over-year decrease. Revenue for the same period is expected to arrive at $155.47M.

Earnings Roundup: In the last fiscal quarter alone, Vanguard Natural Resources, LLC generated around $113.2M in revenue and net income of $0.07/share. That compares with the consensus estimate $169.7M and $0.03/share, respectively. For the prior quarter revenue for the company hit $178.52M, with earnings at $0.49/share.

Analyst Coverage: Stifel has been a brokerage house following shares of Vanguard Natural Resources, LLC (VNR), so its rating change is noteworthy. The stock was upgraded to Hold from Sell, wrote analysts at Stifel, in a note issued to clients on Friday May 27, 2016. There was another key note issued by Raymond James on Monday March 14, 2016. The firm lifted its rating on VNR from Underperform to Mkt Perform.

Price Momentum: Despite the 4.2% increase in value, the stock’s new closing price represents a -89.25% fall in value from company’s one year high of $15.65. The stock is currently holding above its 50 day moving average of $-5.8 and below its 200 day moving average of $1.56. Over the last three months and over the last six months, the shares of Vanguard Natural Resources, LLC (VNR), have changed -61.97% and 2.25%, respectively.