Shares of oil and gas company HighPeak Energy (NASDAQ:HPK) are plummeting today after it announced an underwritten public offering of its common shares. While the exact size of the offer remained undisclosed, HighPeak is also planning to grant a 30-day option to underwriters to acquire additional shares at the offer price. The company plans to use the funds raised for working capital requirements and to shore up its short-term liquidity.
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Separately, the company is also scheduled to report second-quarter numbers on August 7 and is largely expected to post an EPS of $0.62 for the quarter. In the year-ago period, it had delivered an EPS of $0.64, well below the Street’s expectations of $0.76.
HighPeak shares have plunged nearly 46% over the past year, and bears still continue to remain dominant in the stock, with short interest now nearing a massive 26%. Overall, the Street has a $24 consensus price target on HighPeak alongside a Hold consensus rating. This points to a nearly 86.5% potential upside in the stock.
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