HighPoint Story

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HPR -- USA Stock  

USD 4.73  0.73  13.37%

The next earnings report is expected on the 3rd of May 2021. The stock is currently experiencing an active upward rally. Highpoint Resources Gross Margin is relatively stable at the moment as compared to the past year. Highpoint Resources reported last year Gross Margin of 0.80. As of 03/05/2021, Return on Average Equity is likely to grow to 269.40, while Earnings before Tax are likely to drop (1.3 B). As many of us are excited about energy space, it is fair to sum up Highpoint Resources Corp as a unique alternative. We will discuss if it could be a much better year for Highpoint Resources shareholders.
Published over a month ago
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Will Highpoint Resources (NYSE:HPR) be in financial trouble before April?
The company has 762.41 M in debt. Highpoint Resources Corp has a current ratio of 1.05, demonstrating that it is not liquid enough and may have problems paying out its financial commitments when the payables are due.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Highpoint Resources has an asset utilization ratio of 14.01 percent. This connotes that the company is making $0.14 for each dollar of assets. An increasing asset utilization means that Highpoint Resources Corp is more efficient with each dollar of assets it utilizes for everyday operations.
HighPoint Resources financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of HighPoint Resources, including all of HighPoint Resources's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of HighPoint Resources assets, the company is considered highly leveraged. Understanding the composition and structure of overall HighPoint Resources debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

How important is HighPoint Resources's Liquidity

HighPoint Resources financial leverage refers to using borrowed capital as a funding source to finance HighPoint Resources ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. HighPoint Resources financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between HighPoint Resources's total debt and its cash.

How HighPoint utilizes its cash?

To perform a cash flow analysis of HighPoint Resources, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash HighPoint Resources is receiving and how much cash it distributes out in a given period. The HighPoint Resources cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Going after HighPoint Financials

The big decline in price over the last few months for Highpoint Resourcesmay raise some interest from retail investors. The stock closed today at a share price of 9.19 on 446,680 in trading volume. The company executives failed to add value to investors and positioning the firm supply of money to exploit market volatility in February. However, diversifying your holdings with Highpoint Resources Corp or any similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 5.53. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Highpoint Resources Corp partners.

Liabilities Breakdown

Current Liabilities
736.2 M
Long-Term Liabilities
Total Liabilities792.18 Million
Current Liabilities99.56 Million
Long-Term Liabilities736.2 Million
Tax Liabilities24.4 Million

Highpoint Resources implied volatility may change after the spike

The coefficient of variation is down to -1917.06 as of today. Highpoint Resources Corp exhibits very low volatility with skewness of 0.52 and kurtosis of 1.75. However, we advise investors to further study Highpoint Resources Corp technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Highpoint Resources' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Highpoint Resources' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Conclusion on Highpoint Resources

While other entities in the oil & gas e&p industry are either recovering or due for a correction, Highpoint Resources may not be performing as strong as the other in terms of long-term growth potentials. The bottom line, as of the 5th of March 2021, our analysis shows that Highpoint Resources responds to the market. The enterprise is overvalued and projects average odds of financial distress for the next 2 years. Our overall 30 days Buy-Hold-Sell recommendation on the enterprise is Cautious Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of HighPoint Resources. Please refer to our Terms of Use for any information regarding our disclosure principles.

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