Stone Energy Corporation (NYSE: SGY)
Stone Energy was off to a relatively rough start to the trading session today. Unfortunately, since the opening bell, the stock was trading in the red. That is, until minutes ago when we started to see a big spike in value followed by a halt. Below, we’ll talk about what we’re seeing from the stock, why, and what we’ll be watching with regard to SGY ahead.
What We’re Seeing From SGY
As mentioned above, Stone Energy wasn’t off to the best of starts in the market today. As soon as the opening bell rang, the stock found itself in the red, where it continued to struggle for about the first hour. Nonetheless, minutes ago, the stock started spiking. At the moment (10:22), SGY is trading at $4.16 per share after a gain of $0.18 per share or 4.52% thus far today and has been halted.
Why The Stock Spiked
As usual, as soon as we noticed that SGY was spiking upward, the CNA Finance team started searching to see if we could find the reason for the gains. We believe that we have. Ultimately, it looks like the spike was the result of a large share purchase.
Just before the spike, someone bought 75,000. There’s no word on who this might be, but on what is still considered under SEC definition to be a penny stock (any stock trading under $5), this is a big buy! As a result, other investors quickly hopped on the bandwagon, hoping to get in on the gains.
What We’ll Be Watching Ahead
Moving forward, we’ll be keeping a close eye on SGY. We’re interested to see if we ever find out who purchased the big chunk of shares in the company. Nonetheless, we’ll be watching the stock and if anything breaks, we’ll be sure to bring you the news.
Update – Form SC 13D has been filed on Thomas A Satterfield, Jr. at 9.92%.
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