Are Firms Selling Off Shares of SandRidge Permian Trust (NYSE:PER)?

According to the latest filings, institutions owning shares of SandRidge Permian Trust (NYSE:PER) have decreased their positions by -37.19%.  Institutions now own 5.30% of the company.

Big organizations that control vast sums of money, such as mutual funds, insurance companies or pension funds, that buy securities are known as “institutional investors”.  Unlike individual investors, institutional investors trade in massive blocks of 10,000 or more shares per transaction.  The sheer size of these trades significantly affect the price of a share. 

TECHNICAL ANALYSIS

Technical analysts have little regard for the value of a company. They use historic price data to observe stock price patterns to predict the direction of that price going forward.  Analysts use common formulas and ratios to accomplish this.

SandRidge Permian Trust (NYSE:PER)’s RSI (Relative Strength Index) is 40.35.  RSI is a technical indicator of price momentum, comparing the size of recent gains to the size of recent losses and establishes oversold and overbought positions.

FUNDAMENTAL ANALYSIS

Fundamental analysis examines the financial elements of a company, for example; sales, cash flow, profit and balance sheet.  These numbers are then crunched to create theoretical valuations of companies. 

Earnings Per Share (EPS) is the earnings made by a company divided by their number of shares.  EPS enables the earnings of a company to easily be compared to their competitors. The higher the number, the more profit per dollar is being made on investor capital.  SandRidge Permian Trust’s EPS is 0.47.  Their EPS should be compared to other companies in the Basic Materials sector.

Price-to-Earnings Ratio is the current share price divided by annual earnings per share.  P/E provides a number that details how many years of earnings it will take a stock to recoup the value of one share at current price levels.  Easy to calculate and understand, P/E is an extremely common ratio that is used to compare valuations of stocks against each other relatively.  SandRidge Permian Trust’s  P/E ratio is 6.24. 

Projected Earnings Growth (PEG) is a forward looking ratio based on anticipated earnings growth.  PEG is created by dividing P/E by the projected rate of earnings growth.  SandRidge Permian Trust’s  PEG is 0.62.

RETURNS AND RECOMMENDATION

Shareholders can expect a return on equity of 17.10%.  Calculated by dividing SandRidge Permian Trust’s annual earnings by its total assets, investors will note a return on assets of 17.10%.  Finally, SandRidge Permian Trust’s return on investment stands at 18.30% when you divide the shareholder’s return by the cost.  The consensus analysts recommendation at this point stands at 3.00 for SandRidge Permian Trust (NYSE:PER).  This is based on a 1-5 scale where 1 indicates a Strong Buy and 5 a Strong Sell.

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