Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Should You Buy Rex Energy (REXX) after Keystone Clearwater Solutions Deal?

Page 1 of 2

Rex Energy (NASDAQ:REXX) has announced that it, along with its partners, is going to sell Keystone Clearwater Solutions to American Water Works Company, Inc. (NYSE:AWK) for $130 million in cash and debt. Rex Energy holds a 60% stake in Keystone Clearwater Solutions and expects to receive $66 million from the sale after fees. The energy company experienced a pronounced surge in trading volume on June 18 when the deal was announced, and the market has reacted favorably to the sale, gaining 5% on Tuesday and over 12% during the past five trading sessions. In the press release announcing the deal, Rex’s CEO Tom Stabley declared that the sale would provide the company with the necessary financial flexibility to continue to expand on its core operations and assets in the Appalachian Basin. Rex Energy (NASDAQ: REXX) is getting mixed ratings from brokerage firms and analysts, with Global Hunter downgrading it to ‘Neutral’ from ‘Buy’, and Investor Place’s Portfolio Grader giving Fs to Rex in terms of equity, cash flow, operating margins growth, and sales growth. Rex Energy (NASDAQ: REXX) is up by just over 2% since the start of the year.



We at Insider Monkey strongly believe in the paramount importance of hedge funds’ positions while evaluating the performance and prospects of any company. In the previous quarter, 13 of the hedge funds we track had positions in Rex, but by the end of March, this number came down to 7, which starkly depicts the deterioration of hedge funds’ trust in the energy company. We track famous hedge funds and money managers to determine their stock positions in companies because hedge funds use advanced tools and resources to track different companies. Our research proves that hedge funds’ returns for small-cap picks easily surpassed those of the broader market.  A portfolio of the top 15 small-cap stocks among funds outperformed the  S&P 500 Total Return Index by 95 basis points per month between 1999 and 2012 in backtesting. In forward testing, the strategy performed even better, returning 144% and beating the market by over 83 percentage points since then, and by 4.6 percentage points in the first quarter of this year (see the details).

We also believe strongly in insider transactions, and research has shown a correlation between insider purchases and stronger future returns for those stocks. we’ll start with the insider sentiment for Rex, which shows us that L Eric Mattson recently purchased 10,000 shares of Rex Energy (NASDAQ:REXX), in May, which makes him the owner of 48,153 shares in the company. CFO Thomas Rajan also purchased 10,000 shares in May, giving him 190,000 total. Given that shares are down 72% over the past year, it’s not entirely surprising to see executives buy some of the stock, particularly if they feel confident about the future prospects of the company.

Let’s have a detailed look at the recent hedge fund activity for Rex Energy now.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!