Why Gulfport Energy Stock Flopped on Friday

Natural gas company Gulfport Energy (GPOR 5.15%) wasn't providing much energy for its investors on Friday. Many of those folks were dissuaded by a bearish adjustment made by an analyst that morning and sold out of their stock, leaving it with a more than 5% loss that trading session.

Gloomy on gas?

Truist Securities' Gabe Daoud cut his price target on Gulfport to $190 per share, some distance down from his previous fair value assessment of $219. That didn't change his overall view of the stock, as he maintained his hold recommendation.

Image source: Getty Images.

According to reports, Daoud's adjustment was part of a broader reevaluation of the natural gas exploration and production segment of the energy sector. His estimate for gas storage -- a crucial yardstick for pricing -- as of the end of this coming October anticipates it'll be 4% above the five-year norm. Typically, a higher volume of stored gas means lower sale prices.

Daoud did wax bullish about future periods, writing that 2028 and 2029 could see notably lower storage levels (and, therefore, higher prices for companies like Gulfport).

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NYSE: GPOR

Gulfport Energy

Today's Change

(-5.15%) $-8.26

Current Price

$152.10

Key Data Points

Market Cap

$2.9BMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.Market cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.

Day's Range

$149.79 - $160.24

52wk Range

$149.79 - $225.78

Volume

468.6K

Avg Vol

385.9K

Gross Margin

48.03%

Yet another surge in crude

Another factor that's sure to affect natural gas prices is -- once again -- the rising price of crude oil, due largely to the recent flare-up in the Iran war. Typically, when crude increases, gas prices slide. The war will probably drag on for some time, so given that dynamic and the storage situation described by the analyst, I'd probably avoid natural gas equities for now.

NG-1.96%
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