Taking a Fresh Look at 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 $4.18, down from yesterday’s close by -2.34%. 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

Denbury Resources Inc. (DNR) currently trades with a market capitalization of $1.80 Billion. That value represents a market adjusting for revenues that have been growing by 28.24 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of -$60.53 Million over the past twelve months. Generally speaking, earnings are expected to hold steady in coming quarters. Analysts are forecasting earnings of $0.1 on a per share basis this quarter. Perhaps, that suggests something about why 2.67% 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 $4.75. It is now trading 0.57% off that level. The stock is trading $3.63 its 50-day moving average by -0.55%. The stock carved out a 52-week low down at $0.91.

In recent action, Denbury Resources Inc. (DNR) has made a move of +10.00% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 14.57, 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 13.41% with $430.59 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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