Digging Up the Facts on Denbury Resources Inc. (DNR)

Denbury Resources Inc. (DNR) is an interesting player in the Basic Materials space, with a focus on Independent Oil & Gas. The stock has been active on the tape, currently trading at $1.42, up from yesterday’s close by 2.90%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

It’s important to get a feel for how any stock is actually valued on the market based on its core numbers. Denbury Resources Inc. (DNR) currently trades with a market capitalization of $559.52 Million.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For DNR, the company currently has $3.51 Million of cash on the books, which is offset by $83.46 Million current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $-157.2 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.01 on a per share basis this quarter. Perhaps, that suggests something about why 98.67% of the outstanding share supply is held by institutional investors.

Technical Analysis

We’ve taken a serious look at this stock from a fundamental perspective, but the tale of the tape may offer more hints about what lies under the surface. Looking at the stock’s movement on the chart, Denbury Resources Inc. recorded a 52-week high of $4.29. It is now trading 2.87% off that level. The stock is trading $1.25 its 50-day moving average by -0.17%. The stock carved out a 52-week low down at $0.91.

In recent action, Denbury Resources Inc. (DNR) has made a move of +23.48% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 17.45, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 20.43% with $394.03 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of DNR.

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