The Case for and Against Dynegy Inc. (DYN)

Dynegy Inc. (DYN) is an interesting player in the Utilities space, with a focus on Electric Utilities. The stock has been active on the tape, currently trading at $13.28, up from yesterday’s close by 0.23%. 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

Dynegy Inc. (DYN) currently trades with a market capitalization of $1.93 Billion. That value represents a market adjusting for revenues that have been falling by -10.21 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $340 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of -$0.15 on a per share basis this quarter. Perhaps, that suggests something about why 1.97% of the outstanding share supply is held by institutional investors.

Technical Analysis

Sometimes, we can understand most about a stock by simply looking at how it has been trading. Looking at the stock’s movement on the chart, Dynegy Inc. recorded a 52-week high of $13.58. It is now trading 0.3% off that level. The stock is trading $12.26 its 50-day moving average by -1.02%. The stock carved out a 52-week low down at $5.84.

In recent action, Dynegy Inc. (DYN) has made a move of +14.78% 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 16.68, 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 11.56% with $142.58 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of DYN.

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