Magnum Hunter Resources Corp (NYSE:MHR) announced today that, on June 22, 2015, the 125th District Court of Harris County, Texas dismissed the last remaining stockholder derivative case against certain of the Company’s officers and directors. As previously announced by the Company, a series of stockholder derivative cases were filed against certain of the Company’s officers and directors alleging certain breaches of fiduciary duties and other matters in connection with the dismissal by the Company of its independent registered public accounting firm in spring 2013. With this dismissal, the Company and the individual defendants have now been successful in defending all of the derivative cases. In addition, as previously reported by the Company in its public filings with the Securities and Exchange Commission, all of the class action complaints previously filed against the Company and certain of its officers relating to, among other things, such allegations have also been dismissed. Accordingly, all of the shareholder lawsuits relating to these allegations have now been dismissed, and no cash settlements of any form have been paid by the Company or any of the Company’s insurance carriers in connection with these lawsuits.
Mr. Gary C. Evans, Chairman of the Board and Chief Executive Officer of Magnum Hunter, commented, “Our Board of Directors is very pleased to put these shareholder lawsuits behind us. The plaintiffs brought their claims before nine different judges in seven different courts. Every single one of these judges who considered the plaintiffs’ allegations agreed with us that the claims should be dismissed. While this has been a time consuming process, we held our ground and resolved each and every lawsuit without any payments to plaintiffs. All litigation expenses for shareholder lawsuits, other than insurance policy retention amounts, have been covered by our insurance policies.” (Original Source)
Shares of Magnum Hunter Resources closed yesterday at $1.15. MHR has a 1-year high of $7.27 and a 1-year low of $1.07. The stock’s 50-day moving average is $1.50 and its 200-day moving average is $2.12.
On the ratings front, Magnum Hunter Resources has been the subject of a number of recent research reports. In a report issued on July 14, KeyBanc analyst David Deckelbaum maintained a Buy rating on MHR, with a price target of $2.50, which implies an upside of 117.4% from current levels. Separately, on June 9, Imperial’s Kim Pacanovsky downgraded the stock to Sell and has a price target of $1.25.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, David Deckelbaum and Kim Pacanovsky have a total average return of -28.2% and -42.2% respectively. Deckelbaum has a success rate of 10.7% and is ranked #3689 out of 3714 analysts, while Pacanovsky has a success rate of 10.3% and is ranked #3713.
The street is mostly Neutral on MHR stock. Out of 4 analysts who cover the stock, 3 suggest a Hold rating and one recommends to Buy the stock.
Magnum Hunter Resources Corporation is an oil and exploration and production company. The Company is engaged in exploration, acquisition, development and production of crude oil, natural gas and NGLs resources in the United States and Canada.