Today is Tuesday, January 24, 2023.
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HighPeak Energy Potential Sale
Oil producer HighPeak Energy (Nasdaq: HPK) announced that it is considering a potential sale, which sent shares up 15.16% in after-hours trading on Monday.
Details: HighPeak’s Board of Directors has approved a plan to evaluate “strategic alternatives to maximize shareholder value,” which includes a sale. The company said that this plan could result in multiple outcomes and that there is no timetable.
Quote: “The Board and I believe now is an opportune time to capture the value we do not consider is presently reflected in our share price.” - Jack Hightower, Chairman and CEO.
Outlook: HighPeak said that it is going to reduce its drilling operation from six to four drilling rigs this year. It also expects to become cash-flow positive in the second half of the year.
Background: As the price of oil has increased, HighPeak has benefited. Its earnings results in November were better than anticipated. The stock is up 62% in the last 12 months.
Final Thoughts: Since oil has been a steady positive sector, this is a good time for HighPeak to consider a sale. Its price-to-earnings ratio is low, meaning it is a value stock for investors.
Notable Earnings Today: Microsoft (Nasdaq: MSFT), Verizon (NYSE: VZ), Johnson & Johnson (NYSE: JNJ), Intuitive Surgical (Nasdaq: ISRG), Lockheed Martin (NYSE: LMT), Texas Instruments (Nasdaq: TXN), Halliburton (NYSE: HAL), Capital One Financial (NYSE: COF), General Electric (NYSE: GE), F5 Networks (Nasdaq: FFIV), Raytheon Technologies (NYSE: RTX), Canadian National Railway (NYSE: CNI), 3M (NYSE: MMM), Union Pacific (NYSE: UNP), Stride (Nasdaq: LRN), Danaher (NYSE: DHR), Agilysys (Nasdaq: AGYS), D.R. Horton (NYSE: DHI), Navient (Nasdaq: NAVI), Invesco (NYSE: IVZ) Old National Bancorp (Nasdaq: ONB), The Travelers Companies (NYSE: TRV), Veritex Holdings (Nasdaq: VBTX), WesBanco (Nasdaq: WSBC), Western Alliance Bancorporation (NYSE: WAL).
Notable IPOs Today: N/A.
Notable Equity Crowdfunding Campaigns Ending Today: CytexOrtho (StartEngine), Nimbus (StartEngine).
Notable Economic Events Today: Manufacturing PMI (9:45 a.m. ET), Services PMI (9:45 a.m. ET), S&P Global Composite PMI (9:45 a.m. ET).
Zions Bancorporation's Recession Prep
Despite posting positive financial earnings results, shares of Zions Bancorporation (Nasdaq: ZION) fell 3.70% in after-hours trading on Monday.
Financials: Zions Bancorp reported earnings of $1.88 per share and revenue of $873 million; both were better than expected.
Trouble: Even though financials were good, Zions Bancorp said that it was building its loss reserves “due to both continued loan growth and the prospect of a slowing or recessionary economic environment in coming months.”
Stock Price: Shares of Zions Bancorp are down 16% in the last 12 months, but are up 7% in the last 30 days.
Final Thoughts: 2022 was a bad year for bank stocks. Zions Bancorp is trying to turn things around. The bank has taken the right steps just in case there is a recession.
Albemarle Jumps Due to Preliminary Results
Shares of Albemarle (NYSE: ALB) jumped 2.54% in after-hours trading on Monday after the chemicals manufacturing company posted positive preliminary results.
Financials: Albemarle said that it expects to achieve earnings per share of $8.35 to $8.75 in the quarter, which was better than expected.
Final Thoughts: Albemarle’s stock is up 22% in the last 12 months. The company hopes to continue its growth when it reports earnings in February.
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Trends to Watch
Going Nude: Why naked short selling has suddenly become a hot topic (MarketWatch)
Hopeful: Market Recovery Hinges on Quick Inflation Drop (The Wall Steet Journal)
Once a Year: FDA proposes switching to annual coronavirus vaccine, mimicking flu model (The Washington Post)
Starting Up Startup: Retail Investors Are Investing Billions To Disrupt the Venture Capital Market, and It's Working (Benzinga)
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