Should You Follow The Insiders And Buy Halcon Resources Corporation (HK)?

Thanks to a 3 sell/buy ratio, Halcon Resources Corporation (NYSE:HK) insider selling over the last three months picked up more than buying did. When insiders sell more shares of their company stock, it’s generally for one reason only: With inside knowledge of their company’s prospects, they expect the stock price to decline soon. HK recorded 3 sales on the open market in the last three months. They sold nearly 1,739 shares while purchases amounted to zero shares that period. Looking even further back to 12 months, corporate insiders offloaded 3,715,586 shares when buyers snapped up 2,311,437 shares. The 12-month’s totals signify about a 1.61-to-1 sell/buy ratio.

Fuller Thomas R parted with a total of 1.37 thousand shares of Halcon Resources Corporation (HK) at average share price of $2.91. This insider trade in the company took place on 11/27/2018. The total for the sales was set at $3.98 thousand. After this transaction, the Director account balance stood at 84.32 thousand shares. The stock lost -35.74 percent since that insider sale. On 11/19/2018, Elkouri David S, EVP and CLO, sold 0.33 thousand shares at a price per share of $3. This removed 0.99 thousand shares from the insider’s fortune and the stock saw a -37.67 percent retreat in value since the news became public. This transaction left 380.21 thousand shares in the EVP and CLO account.

On 11/19/2018, SVP, HR & Administration Kasparek Leah R. performed a sale transaction worth $0.12 thousand. This sale at $2.99 each has eliminated 0.04 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -37.46 percent decrease since the transaction was reported. The insider now is left with 98.34 thousand shares remaining in the account. Ares Management Llc, who performs the Director, 10% Owner job, sold 986.28 thousand shares for $3.77 million. The disposal occurred on 08/15/2018 was priced at $3.82 per share. The share price plunged -51.05 percent since the reporting date. Ares Management Llc now left with a stake of 20.96 million HK stock worth $39.19 million after the insider selling.

The 12-month median price target for Halcon Resources Corporation (HK) assigned by the analysts stands at $3, which represents a return potential of 60.43 percent when compared to the closing price of the stock of $1.87 on Friday, January 11. The lowest price target for the stock is $2.13 — slightly more than 13.9 percent from HK’s current share price. The stock will probably climb 197.33 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $13-month high price target. This represents a whopping 595.19 percent increase from where shares are trading today.

On momentum oscillators front, ‘RSI’ has touched 41.25 on daily chart, which may remain a cause for concern. If the price breaks below $1.71 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $1.96 mark may result into a pull-back move towards $2.05 level. The stock is currently hovering around the first support level of $1.79. Below this, the next support is placed in the zone of $1.71. Till the time, the HK stock trades above this level, bulls have nothing to fear.

Shares of Halcon Resources Corporation (HK) are trading at a P/E ratio of 1 times earnings reported for the past 12 months. The industry HK operates in has an average P/E of 14.33. Its P/E ratio went as low as 3.41X and as high as 3.41 over the 5-year span. Further, it is sporting a 1.66 on the Price-to-Sales ratio. Compare this with the industry average P/S of 99.85. 88.1 percent is the gross profit margin for Halcon Resources Corporation and operating margin sits at -32.6 percent. Along with this, the net profit margin is 0 percent.

On 11th of January, Halcon Resources Corporation (NYSE:HK) shares ended lower after a volatile session. The shares dropped -0.11 points or -5.56 percent at $1.87 with a heavy trade volume of 6.035 million shares. After opening the session at $1.95, the shares went as high as $1.9668 and as low as $1.8, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $318 million and now has 170.11 million shares outstanding. Halcon Resources Corporation (HK) stock has lost -19.05 percent of market value in 21 trading days.

HK stock has a trailing 3-year beta of 4.18, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $0.63 a share in the trailing twelve months. The stock’s value has surged 10 percent year to date (YTD) against a decline of -76.42 percent in 12 month’s time. The company’s shares still trade -79.38 percent away from its 1-year high of $9.07 and 30.77 percent up from 52-week low of $1.43. The average consensus rating on the company is 2.9, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.