Denbury Resources Inc. (NYSE:DNR) shares traded lower over the last trading session, losing -4.06% on 05/21/20. The shares fell to a low of $0.246 before closing at $0.25. Intraday shares traded counted 4.06 million, which was 82.2% higher than its 30-day average trading volume of 22.79M. DNR’s previous close was $0.26 while the outstanding shares total 478.24M. The firm has a beta of 4.44, a 12-month trailing P/E ratio of 0.57, and a growth ratio of 0.02. The stock’s Relative Strength Index (RSI) is 46.11, with weekly volatility at 10.40% and ATR at 0.04. The DNR stock’s 52-week price range has touched low of $0.16 and a $1.85 high.
Investors have identified the Oil & Gas E&P company Denbury Resources Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $127.08 million, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Denbury Resources Inc. (DNR) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For DNR, the company has in raw cash 6.92 million on their books with 105.26 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 256920000 million total, with 258723000 million as their total liabilities.
DNR were able to record 9.53 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 6.53 million. In cash movements, the company had a total of 61.84 million as operating cash flow.
Potential earnings growth for Denbury Resources Inc. (DNR)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Denbury Resources Inc. recorded a total of 242.2 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -26.12% coming in sequential stages and their sales for the third quarter reducing by -28.25%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 175.35 million trying to sell their products during the last quarter, with the result yielding a gross income of 66.85 million. This allows shareholders to hold on to 478.24M with the revenue now reading 0.15 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.05 cents a share).
Having a look at the company’s valuation, the company is expected to record 0.40 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on DNR sounds very interesting.
Is the stock of DNR attractive?
In related news, Director, McMichael Greg sold 20,000 shares of the company’s stock in a transaction that recorded on Aug 28. The sale was performed at an average price of 1.09, for a total value of 21,800. As the sale deal closes, the President and CEO, Kendall Christian S now bought 100,000 shares of the company’s stock, valued at 124,900. In the last 6 months, insiders have changed their ownership in shares of company stock by 1.10%.