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How Denbury Resources’ Stock Price Reacted to Its Past Earnings

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Denbury Resources’ stock price action

After losing ~95% of its market capitalization from June 2014 to January 2016, Denbury Resources’ (DNR) stock price is finally showing signs of a new uptrend.

In April 2016, as seen in the chart above, Denbury Resources’ stock price made a higher high. In the same month, it also crossed its 200-day moving average. Currently, DNR’s stock price is trading near its 200-day moving average. Since its January 2016 bottom, Denbury Resources’ stock price has risen by a whopping ~237%.

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Denbury Resources’ relative performance

Recently, DNR has shown relative weakness compared with other crude oil (USO) and natural gas (UNG) producers. In the last three months, Denbury Resources’ stock price fell by ~37%. Compare this with the SPDR S&P Oil and Gas Exploration & Production ETF (XOP), which fell by ~10% during the same period.

Denbury Resources’ year-to-date performance

So far in 2016, Denbury Resources is underperforming other smaller upstream companies. DNR has risen by ~45% in 2016, whereas other smaller oil and gas producers such as Parsley Energy (PE), Continental Resources (CLR), and WPX Energy (WPX) have risen by ~48%, ~82%, and ~61%, respectively.

Denbury Resources’ stock price performance after its past earnings

Denbury Resources reported its 1Q16 earnings, before the Market opened on May 5, 2016. In 1Q16, excluding one-time items, Denbury Resources reported earnings per share (or EPS) of -$0.03, $0.04 better than analysts’ consensus EPS estimate of -$0.07. DNR’s better-than-expected earnings saw its stock price rise by ~36% in the six sessions following its earnings release.

DNR reported its 4Q15 earnings before the Market opened on February 18, 2016. In 4Q15, excluding one-time items, DNR reported EPS of -$0.01, $0.02 worse than analysts’ consensus EPS estimate of $0.01. DNR’s lower-than-expected earnings saw its stock price fall by ~19% in the two sessions following the release.

For its 3Q15 earnings, excluding one-time items, DNR reported EPS of $0.18, $0.05 better than analysts’ consensus EPS estimate of $0.13. DNR’s better-than-expected earnings saw its stock price rise by ~13% in the two sessions following the release.

A contrarian reaction was observed after the company’s 2Q15 earnings, when its stock price fell by ~13% in one session even after it beat analysts’ consensus EPS estimates by $0.01.

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