NEW YORK (TheStreet) -- Shares of Warren Resources were gaining 17.7% to $1.20 on heavy trading volume Wednesday as oil prices rose for a second day. WTI crude oil for May delivery was up 4.2% to $55.55 a barrel early Wednesday afternoon, and Brent crude oil for May delivery was up 2.5% to $59.88 a barrel. The rising oil prices come after the U.S. Energy Information Administration announced that U.S. crude oil inventories grew by 1.3 million barrels to 483.7 million in the week ending April 10, their highest levels in at least 80 years. Analysts surveyed by the Wall Street Journal expected inventories to increase by 3.6 million last week. The lower-than-expected increase comes a day after the International Energy Agency announced that it expects global oil demand to increase by 1.1 million barrels a day in 2015, according to the Journal. The increase would be a "notable acceleration" from the 700,000 barrels a day growth seen in 2014, the agency said. About 3.8 million shares of Warren Resources were traded by 12:26 p.m. Wednesday, above the oil and gas company's average trading volume of about 1.6 million shares a day. TheStreet Ratings team rates WARREN RESOURCES INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation: "We rate WARREN RESOURCES INC (WRES) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and generally higher debt management risk." Highlights from the analysis by TheStreet Ratings Team goes as follows: The revenue growth greatly exceeded the industry average of 19.6%. Since the same quarter one year prior, revenues rose by 25.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. The gross profit margin for WARREN RESOURCES INC is rather high; currently it is at 58.45%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 3.26% trails the industry average. The debt-to-equity ratio of 1.48 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with this, the company manages to maintain a quick ratio of 0.38, which clearly demonstrates the inability to cover short-term cash needs. Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, WARREN RESOURCES INC's return on equity is significantly below that of the industry average and is below that of the S&P 500. You can view the full analysis from the report here: WRES Ratings Report Must Read: Warren Buffett's Top 25 Stocks for 2015
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