Rex Energy Corporation (NASDAQ:REXX) announced that it has suspended payment of its quarterly dividend on shares of its 6.0% Series A convertible perpetual preferred stock.
The company has 16,100 shares of 6.0% convertible perpetual preferred stock outstanding, represented by 1,610,000 depositary shares, and will continue to evaluate the payment or suspension of the dividend on a quarterly basis. The dividend suspension creates an additional $2.4 million of liquidity per quarter and does not constitute an event of default under the company’s revolving credit facility or outstanding bond indentures. (Original Source)
Shares of Rex Energy are down 12% to $0.66 in after-hours trading. REXX has a 1-year high of $5.74 and a 1-year low of $0.56. The stock’s 50-day moving average is $0.97 and its 200-day moving average is $2.22.
On the ratings front, Rex Energy has been the subject of a number of recent research reports. In a report issued on January 19, KLR Group analyst John Gerdes downgraded REXX to Hold, with a price target of $1.50, which represents a potential upside of 87.5% from where the stock is currently trading. Separately, on December 22, KeyBanc’s David Deckelbaum downgraded the stock to Hold .
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, John Gerdes and David Deckelbaum have a total average return of 1.4% and -42.8% respectively. Gerdes has a success rate of 47.7% and is ranked #989 out of 3579 analysts, while Deckelbaum has a success rate of 14.3% and is ranked #3543.
The street is mostly Neutral on REXX stock. Out of 5 analysts who cover the stock, 4 suggest a Hold rating and one recommends to Sell the stock. The 12-month average price target assigned to the stock is $1.50, which implies an upside of 87.5% from current levels.
Rex Energy Corp is an independent energy company. The Company is engaged in acquisition, production, exploration and development of oil and gas with properties concentrated in the Appalachian and Illinois regions.