The Case for and Against Halcon Resources Corporation (HK)

Halcon Resources Corporation (HK) is an interesting player in the Basic Materials space, with a focus on Oil & Gas Drilling & Exploration. The stock has been active on the tape, currently trading at $5.58, up from yesterday’s close by 13.18%. 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

Halcon Resources Corporation (HK) currently trades with a market capitalization of $932.19 Million. That value represents a market adjusting for revenues that have been falling by -63.68 % 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 -$1.62 Billion over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of -$0.03 on a per share basis this quarter. Perhaps, that suggests something about why 6.03% 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, Halcon Resources Corporation recorded a 52-week high of $9.07. It is now trading 3.49% off that level. The stock is trading $5.14 its 50-day moving average by -0.44%. The stock carved out a 52-week low down at $3.68.

In recent action, Halcon Resources Corporation (HK) has made a move of +2.57% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 15.08, 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 13.61% with $156.66 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of HK.

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