Why SandRidge Energy Inc. Stock Popped 30% and Then Dropped
It's been a crazy week for investors in SandRidge Energy's stock. Yesterday the stock surged nearly 30% on absolutely no news. Today, the stock is falling and earlier was down as much as 6%, again on no news. In the chart below we can see yesterday's brief pop and then today's subsequent fall.
SandRidge Energy wasn't alone in popping yesterday. Several energy stocks jumped more than 7% with Swift Energy Co. up 21% and Northern Oil & Gas up 10% in what appears to be some bottom-feeding by investors, who are buying up oil stocks that have been severely beaten down this year. These three stocks in particular have been absolutely crushed this year, as we see in the next chart.
Today's sell-off in SandRidge Energy could be some quick profit taking or just over leveraged investors running for the exits.
While shares will likely be very volatile as oil prices keep falling, the real news to keep an eye on are SandRidge Energy's third-quarter earnings. The company expects to release those results Nov. 5 after markets close. That report should give investors a better idea of how SandRidge Energy is managing the plunge in oil prices and what to expect form the company going forward.
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The article Why SandRidge Energy Inc. Stock Popped 30% and Then Dropped originally appeared on Fool.com.Matt DiLallo owns shares of SandRidge Energy. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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