Just the Facts on Newpark Resources, Inc. (NR)

Newpark Resources, Inc. (NYSE:NR) is an interesting player in the Basic Materials space, with a focus on Oil & Gas Equipment & Services. The stock has been active on the tape, currently trading at $7.95, up from yesterday’s close by -1.85%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Money managers are always interested in a company that can find the right recipe of fundamental data because it reflects something important going on underneath the surface. Newpark Resources, Inc. (NR) currently trades with a market capitalization of $673.00M. That value represents a market adjusting for revenues that have been falling by -32.20% on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For NR, the company currently has $91.86M of cash on the books, which is offset by $169.53M current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $-14.80M over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of -0.09 on a per share basis this quarter. Perhaps, that suggests something about why 102.30% of the outstanding share supply is held by institutional investors.

Technical Analysis

We’ve taken a serious look at this stock from a fundamental perspective, but the tale of the tape may offer more hints about what lies under the surface. Looking at the stock’s movement on the chart, Newpark Resources, Inc. recorded a 52-week high of 8.75. It is now trading 0.65 off that level. The stock is trading 7.77 its 50-day moving average by -0.33. The stock carved out a 52-week low down at 3.35.

In recent action, Newpark Resources, Inc. (NR) has made a move of +0.63% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is outperforming the S&P 500 by 58.04, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 82.19M with 7.64% sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of NR.

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