Why Rex Energy's Shares Dropped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of independent oil and gas company Rex Energy (Nasdaq: REXX  ) fell 10% today, after being downgraded by an analyst.

So what: Yesterday, Rex Energy reported earnings that were slightly better than expected, but it wasn't enough for Global Hunter Securities to keep a buy rating on the stock. It lowered its rating to accumulate, and lowered its price target to $15.

Now what: I'm a little confused about what the difference between "buy" and "accumulate" is in Hunter's rating system, but I assume that it means, don't buy as much. The $15 price target is also nicely above today's price, and is 13% above yesterday's close -- not a bad gain if it reaches that price in a year. I wouldn't change anything about my investment thesis today, and would view this analyst-driven dip as a buying opportunity. After all, even Global Hunter Securities thinks you should buy the stock.

Interested in more info on Rex Energy? Add it to your watchlist by clicking here.

 

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2103129, ~/Articles/ArticleHandler.aspx, 11/23/2014 3:14:38 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement