Basic Energy Services, Inc (NYSE:BAS) was a notable decliner during Thursday’s trading session declining by 2% on relative heavy volumes, which were 0.9 times the daily average. The stock has been trending lower ever since it was unable to breach above its 50 day moving average. Basic Energy currently trades below all daily moving averages.The indicator measuring relative strength provided a fresh sell signal indicative of the strong selling interest. The oscillator for momentum is showing no signs of strong bullish reversal, which is considered a negative. Traders see the stock heading to levels of $3.33 in the near term.
Basic Energy Services, Inc (NYSE:BAS) has made appearances at several major investment conferences in less than a month’s time. The company recently revealed that its management would be presenting at three investor conferences during the first 2-weeks of December. The presentations would start with the “Cowen and Company 5th Annual Ultimate Energy Conference”, for which the company CEO, Roe Patterson, would be present in New York. Previously, BAS had also presented at “Stephens Fall Investment Conference”, on November 10. The CFO, Alan Krenek, presented at this conference.
Basic Energy has been losing a lot of interest from investors and analysts, especially institutional investors. Interest from hedge funds has estimated to have changed by -33%, since the second quarter. The surprising thing here is that a number of these investors had slowly been increasing their stake in the company, before withdrawing completely. Currently, the largest stake in Basic Energy is held by Fine Capital Partners and is worth $14 million.
Similarly, investors have weighed in on BAS with mixed views. Currently, the stock has a sell rating from analysts at Zacks, but the majority of Wall Street analysts awarded the stock an average buy rating to BAS. The bearish views can be a result of the recent 3Q2015 filing by the company. As per the details, BAS revenues suffered a loss of 51.96%, when compared to the same period in the previous year. The EPS was affected in a similar manner. A recent analysis revealed that the EPS was average, when compared to the industry.
However, the most alarming situation in the 3Q2015 was the fact that the company had suffered a decline of 86.88% in its operating cash flow, in a year-over-year basis. A detailed analysis of the report also revealed that a decline in operating margins was the cause of decline in earnings.
Basic Energy Services, Inc (NYSE:BAS) experienced a decline of 4.99% in its share value, to close at a stock price of $3.81, on December 2.