U.S. Energy Corp. (Nasdaq: USEG) – in play. But Why?

U.S. Energy Corporation – Nasdaq: USEG

Shares of U.S. Energy Corporation rocketed at the open from $1.45 to $2.74 in the early afternoon on heavy trading. The Nasdaq stock, traded under ticker USEG, has seen better days, and last traded above the $5.00 handle in mid-2015.

In 2015 USEG had a $14.39 EPS loss on sales of $10.3 million. Traders following USEG are unsure of what has motivated demand and published reports indicate that some are wary of a “pump and dump” at play. But it should also be noted that OPEC has recently announced production cuts which could be good news for the beleaguered company.

U.S. Energy Corp. is a diversified natural resource company with primary interests in oil & gas and molybdenum. U.S. Energy Corp.’s objective is to identify and strategically invest in oil and gas exploration and development opportunities with a primary focus on oil, that present above-average return-on-investment potential. The Denver-based company presently has operations in the Gulf Coast, Eagle Ford Basin (TX), and the Williston Basin (N Dakota).

Three firms follow U.S. Energy Corporation but have not adjusted their analysis or ratings this year. The last analyst activity (February of 2015) saw Global Hunter Securities downgrade USEG from “Accumulate” to “Neutral”. Given the unexpected volume in USEG, traders are paying close attention to see if this is a true play on earnings or a corporate action, or if this is a head fake.

Always perform your own due diligence before making any decisions regarding the buy or sale of any stock. The below data is provided without any guarantee of its accuracy.

Ticker Symbol USEG
Last Price a/o 3:00 EST  $               2.40
Average Volume 24,640
Market Cap $7.74 million
Sales $6.6 million
Shares Outstanding 5.5 million
Share Float 4.7 million
Shortable Yes
Optionable No
Inside Ownership 7.40%
Short Float 0.38%
Short Interest Ratio 0.73
Quarterly Return -25.40%
YTD Return 46.87%
Year Return 95.83%

Author: James Marion

James Marion is a University of Houston student studying Business with a concentration in Finance.

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