Penny Stocks in Oil: AMR is Rebounding Fast, Up 26% Today!

Penny Stocks

Houston’s oil and gas company, Alta Mesa Resources (NASDAQ:AMR), is on the rise, climbing 26.42% on the NASDAQ exchange and selling for $0.28 USD at present. This penny stock is cheaper than a stamp at present, so should you be enticed?

Let’s have a look.

Penny Stocks: Alta Mesa Resources

According to its website, AMR is an “independent exploration and production company focused on the development and acquisition of unconventional oil and natural gas reserves.”

The company extracts from the eastern portion of the Anadarko Basin referred to as the STACK, which is found in the prolific Kingfisher County.

Penny Stocks Movement

The AMR penny stock has seen a rise in trading volume in the last three months. With 3,244,673 shares, on average, trading daily. Share price has also increased, rising 40% since the end of February when stock sold for $0.20.

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Nearly one year ago, this penny stock recorded a 52-week high of $7.92 USD. So while it’s nice to think these shares may reach those highs again, the current low price still represents a plunge of 72% YTD.

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However, analysts are predicting positive things ahead for AMR penny stocks. The consensus 12-month potential price target has been set at $2.80. This price means a whopping increase of 900% from its current trading price.

Further, Wall Street analysts are split 50/50 between buying and holding AMR shares. Importantly, 0% of them rate it as a sell.

In fact, RNSDaily says that “sell-side analysts think there is almost 1328.57% more gain yet to come for shareholders.”

Analysts are Bullish

It’s hard to know exactly why analysts are bullish on the AMR penny stock. The company has had a shaky year, with the resignation of its former CEO and COO in December. Then, in March, it announced that it was letting go of 58 members of its staff.

Perhaps it is because the price of oil is rebounding from 2018’s lull, which saw oil prices slump to $48 per barrel. Oil has rebounded over 30% so far in 2019, and further growth is expected in the wake of a potential civil war in Libya, which would threaten supply.

Brent oil is now selling for around the $70 per barrel mark, and crude oil is selling for $60 per barrel. With prices rising fast, penny stocks in oil may be worth the risk.

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