Halcon Resources Corp (NYSE:HK) downgraded by analysts

Posted by Beth Hart August 20, 2013 0 Comment 1175 views


Halcon Resources Corp (NYSE:HK), the U.S.-based company focused on the acquisition, production, exploration of onshore liquids-rich oil and natural gas assets with reserves located in Texas, North Dakota, Louisiana, Oklahoma and Montana, is reportedly cutting its production estimate to 42M boe/ day from 47M. The company is expected to officially announce its production outlook with quarter 2013 results.

As a result, Halcon Resources has been downgraded by analysts at Stifel Nicolaus. Stifel has downgraded Halcon’s shares from a “buy” rating to “hold rating. They have set $8.00 as target price on the stock. In addition, analysts at Canaccord Genuity lowered their price target from $7.50 to $7.00 for Halcon’s shares; Johnson Rice research analysts also downgraded shares of Halcon from a “focus list” rating to an “overweight” rating, while Raymond James reiterated a “buy” rating on shares of the company.

In total, two analysts have given a “sell” rating, six ha rated a “hold” rating, and one analyst has assigned a “strong buy” rating to Halcon Resources Corp (NYSE:HK)’s stock. Currently, the company has a consensus rating of “Buy” and price target of $8.25.

On the other hand, Halcon Resources Corp. said that it has priced an underwritten public offering of 38,000,000 shares of its stock at $5.10 per share price. A 30-day option has been granted to the underwriters to buy up to an additional 5,700,000 shares of the stock. The company plans to use the fund to repay a part of the outstanding borrowings.

Canada Pension Plan Investment, one of the main shareholders, bought 5,185,553 shares of the common stock at an average price of $5.10 per share, on August 8. The total transaction was $26,446,320.30.

On August 1, the company reported $0.08 earnings per share in its quarterly earnings, beating the analysts’ consensus estimate of $0.06. Halcon’s revenue was $214.30 million for the quarter, compared to the consensus estimate of $208.55 million.


About Beth Hart

Beth is from New York. She has two master’s degrees and served as a lecturer in B-School. Her master’s degree is an MBA in Global Management from the University of Phoenix (2010). She has worked for small businesses, public agencies, and large corporations. She does write articles as a freelancer.

View all post by Beth Hart

Write Your Comment