Taking a Fresh Look at Resolute Energy Corporation (REN)

Resolute Energy Corporation (NYSE:REN) is an interesting player in the Basic Materials space, with a focus on Independent Oil & Gas. The stock has been active on the tape, currently trading at $42.89, up from yesterday’s close by 2.12%. 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

It’s important to get a feel for how any stock is actually valued on the market based on its core numbers. Resolute Energy Corporation (REN) currently trades with a market capitalization of $934.47M. That value represents a market adjusting for revenues that have been growing by 29.50% 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 REN, the company currently has $908.00k of cash on the books, which is offset by $518.21M current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $-37.27M over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of 0.81 on a per share basis this quarter.

Technical Analysis

It’s important to check the technicals to get a sense of how has been acting. Looking at the stock’s movement on the chart, Resolute Energy Corporation recorded a 52-week high of 43.35. It is now trading 1.35 off that level. The stock is trading 37.48 its 50-day moving average by -4.52. The stock carved out a 52-week low down at 2.25.

In recent action, Resolute Energy Corporation (REN) has made a move of +22.86% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 19.91, 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 12.41M. That suggests something of the likelihood of a short squeeze in shares of REN.

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