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.
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