Gran Tierra Energy Stock Buy Hold or Sell Recommendation

GTE Stock  USD 8.49  0.16  1.92%   
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Gran Tierra Energy is 'Strong Hold'. Macroaxis provides Gran Tierra buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding GTE positions. The advice algorithm takes into account all of Gran Tierra's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Gran Tierra's buy or sell advice are summarized below:
Real Value
9.87
Hype Value
8.65
Market Value
8.49
Naive Value
7.78
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Gran Tierra Energy given historical horizon and risk tolerance towards Gran Tierra. When Macroaxis issues a 'buy' or 'sell' recommendation for Gran Tierra Energy, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out Gran Tierra Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
In addition, we conduct extensive research on individual companies such as Gran and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Gran Tierra Energy. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in estimate.

Execute Gran Tierra Buy or Sell Advice

The Gran recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Gran Tierra Energy. Macroaxis does not own or have any residual interests in Gran Tierra Energy or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Gran Tierra's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Gran TierraBuy Gran Tierra
Strong Hold

Market Performance

SolidDetails

Volatility

Somewhat reliableDetails

Hype Condition

Under hypedDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

Below AverageDetails

Economic Sensitivity

Responds to the marketDetails

Investor Sentiment

InterestedDetails

Analyst Consensus

Not AvailableDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Possible ManipulatorDetails
For the selected time horizon Gran Tierra Energy has a Risk Adjusted Performance of 0.1678, Jensen Alpha of 0.7256, Total Risk Alpha of 0.5606, Sortino Ratio of 0.2856 and Treynor Ratio of 2.17
We provide advice to complement the regular expert consensus on Gran Tierra. Our dynamic recommendation engine utilizes a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time. To make sure Gran Tierra Energy is not overpriced, please check out all Gran Tierra fundamentals, including its revenue, current ratio, and the relationship between the number of shares shorted and cash and equivalents . Given that Gran Tierra Energy has a price to earning of 2.72 X, we strongly advise you to confirm Gran Tierra Energy market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your regular risk tolerance and investing horizon.

Gran Tierra Trading Alerts and Improvement Suggestions

The company has 555.14 M in debt with debt to equity (D/E) ratio of 1.46, which is OK given its current industry classification. Gran Tierra Energy has a current ratio of 0.71, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Debt can assist Gran Tierra until it has trouble settling it off, either with new capital or with free cash flow. So, Gran Tierra's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Gran Tierra Energy sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Gran to invest in growth at high rates of return. When we think about Gran Tierra's use of debt, we should always consider it together with cash and equity.
The entity reported the last year's revenue of 636.96 M. Reported Net Loss for the year was (6.29 M) with profit before taxes, overhead, and interest of 538.81 M.

Gran Tierra Returns Distribution Density

The distribution of Gran Tierra's historical returns is an attempt to chart the uncertainty of Gran Tierra's future price movements. The chart of the probability distribution of Gran Tierra daily returns describes the distribution of returns around its average expected value. We use Gran Tierra Energy price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Gran Tierra returns is essential to provide solid investment advice for Gran Tierra.
Mean Return
0.75
Value At Risk
-3.89
Potential Upside
5.90
Standard Deviation
2.73
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Gran Tierra historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Gran Tierra Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Gran Tierra or Oil, Gas & Consumable Fuels sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Gran Tierra's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Gran stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
0.73
β
Beta against NYSE Composite0.34
σ
Overall volatility
2.73
Ir
Information ratio 0.26

Gran Tierra Volatility Alert

Gran Tierra Energy currently demonstrates below-average downside deviation. It has Information Ratio of 0.26 and Jensen Alpha of 0.73. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Gran Tierra's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Gran Tierra's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Gran Tierra Fundamentals Vs Peers

Comparing Gran Tierra's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Gran Tierra's direct or indirect competition across all of the common fundamentals between Gran Tierra and the related equities. This way, we can detect undervalued stocks with similar characteristics as Gran Tierra or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Gran Tierra's fundamental indicators could also be used in its relative valuation, which is a method of valuing Gran Tierra by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Gran Tierra to competition
FundamentalsGran TierraPeer Average
Return On Equity0.0085-0.31
Return On Asset0.0801-0.14
Profit Margin0.01 %(1.27) %
Operating Margin0.23 %(5.51) %
Current Valuation762.98 M16.62 B
Shares Outstanding31.33 M571.82 M
Shares Owned By Insiders2.85 %10.09 %
Shares Owned By Institutions31.52 %39.21 %
Number Of Shares Shorted501.73 K4.71 M
Price To Earning2.72 X28.72 X
Price To Book0.66 X9.51 X
Price To Sales0.41 X11.42 X
Revenue636.96 M9.43 B
Gross Profit538.81 M27.38 B
EBITDA389.7 M3.9 B
Net Income(6.29 M)570.98 M
Cash And Equivalents126.87 M2.7 B
Cash Per Share0.33 X5.01 X
Total Debt555.14 M5.32 B
Debt To Equity1.46 %48.70 %
Current Ratio0.72 X2.16 X
Book Value Per Share12.48 X1.93 K
Cash Flow From Operations227.99 M971.22 M
Short Ratio1.26 X4.00 X
Earnings Per Share0.09 X3.12 X
Price To Earnings To Growth0.13 X4.89 X
Target Price9.49
Number Of Employees35118.84 K
Beta1.54-0.15
Market Capitalization266.01 M19.03 B
Total Asset1.33 B29.47 B
Retained Earnings(863.03 M)9.33 B
Working Capital(147.79 M)1.48 B
Note: Disposition of 4000 shares by Redford Alison of Gran Tierra at 9.14 subject to Rule 16b-3 [view details]

Gran Tierra Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Gran . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Gran Tierra Buy or Sell Advice

When is the right time to buy or sell Gran Tierra Energy? Buying financial instruments such as Gran Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Gran Tierra in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Industrials ETFs
Industrials ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Industrials ETFs theme has 38 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Industrials ETFs Theme or any other thematic opportunities.
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When determining whether Gran Tierra Energy is a strong investment it is important to analyze Gran Tierra's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Gran Tierra's future performance. For an informed investment choice regarding Gran Stock, refer to the following important reports:
Check out Gran Tierra Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
You can also try the Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.

Complementary Tools for Gran Stock analysis

When running Gran Tierra's price analysis, check to measure Gran Tierra's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Gran Tierra is operating at the current time. Most of Gran Tierra's value examination focuses on studying past and present price action to predict the probability of Gran Tierra's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Gran Tierra's price. Additionally, you may evaluate how the addition of Gran Tierra to your portfolios can decrease your overall portfolio volatility.
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Is Gran Tierra's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Gran Tierra. If investors know Gran will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Gran Tierra listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Gran Tierra Energy is measured differently than its book value, which is the value of Gran that is recorded on the company's balance sheet. Investors also form their own opinion of Gran Tierra's value that differs from its market value or its book value, called intrinsic value, which is Gran Tierra's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Gran Tierra's market value can be influenced by many factors that don't directly affect Gran Tierra's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Gran Tierra's value and its price as these two are different measures arrived at by different means. Investors typically determine if Gran Tierra is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Gran Tierra's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.