Dynegy Inc. (DYN): What’s the Story?

Dynegy Inc. (DYN) is an interesting player in the Utilities space, with a focus on Electric Utilities. The stock has been active on the tape, currently trading at $11.14, down from yesterday’s close by -1.94%. 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

Does this stock stack up well when compared to its peers in the industry space? Let’s take a look. Dynegy Inc. (DYN) currently trades with a market capitalization of $1.47 Billion. That value represents a market adjusting for revenues that have been growing by 21.37 % on a quarterly year/year basis as of the company’s last quarterly report.

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 DYN, the company currently has $613 Million of cash on the books, which is offset by $99 Million current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $340 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $-1.13 on a per share basis this quarter. Perhaps, that suggests something about why 98.46% of the outstanding share supply is held by institutional investors.

Technical Analysis

No analysis is ever complete without a thorough survey of a stock’s technical behavior. Looking at the stock’s movement on the chart, Dynegy Inc. recorded a 52-week high of $12.84. It is now trading 1.7% off that level. The stock is trading $11.00 its 50-day moving average by -0.14%. The stock carved out a 52-week low down at $5.84.

In recent action, Dynegy Inc. (DYN) has made a move of -8.39% 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 17.32, 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 21.13% with $129.51 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of DYN.

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