Halcon Resources Corp (NYSE:HK) Banks On Wolfcamp Potential


Dallas, Texas 10/17/2013 (Financialstrend) – Share holders of Halcon Resources Corp (NYSE:HK) would be excited to hear yesterday’s news that oil and gas rating agency Susquehanna has raised the PT for one of its WolfCamp compatriots to a new high. On October 16, it was announced that Susquehanna has raised the target price for Pioneer Natural Resources (PDX) by close to 5%. The new TP is $180 in comparison to previously quoted price of $170.

The shareholders of HK are entitled to feel good since Halcon has huge land acreages in the Midland Wolf camp area of Texas. The analysts and the investors seem to buy the argument. This is borne out by the fact that HK stock staged a smart upwards rally of close to 4.12% during trading yesterday. The stock closed out October 16 at $5.31 per share which is 20.4% above its 52 week lowest pricing. The PT of this stock has also seen a upward correction. The new target price has been set at $7.18 by analysts.

Investors in the stock of this $1.95 billion market capped firm would be keeping their fingers crossed hoping for a strong showing when 3Q operation results are announced in the first week of November. To recap, the oil firm had posted a record 819% increase in quarter on quarter sales in 2Q13. This strong sales growth had pushed the company sales figures to a significant $602 million over a trailing 12 month period basis.

The potential of the stock can be gauged by the huge amount of insider transactions that this stock has been attracting over the past few weeks. HK has 366 million shares outstanding. Of this close to 3.1% is held by insiders of the company. Over the past 180 days the insider ownership has jumped up 258% which is a dead giveaway of the hidden potential of this oil manufacturer.