Q2 STOCKS TO BUY

Penny Stock Set to Extend Red-Hot Rebound

ORN's 200-day trendline could be in focus today

Jul 17, 2019 at 9:26 AM
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Orion Group Holdings Inc (NYSE:ORN) stock is up 8.7% in electronic trading, after the Texas-based construction concern won a $52 million contract. Specifically, ORN's marine business will provide dredging services for the South Texas Gateway Terminal project, and will provide design assistance for the marine terminal.

Should today's pre-market price action pan out, it would extend ORN stock's impressive rebound off its May 23 record low of $1.31. Through last night's close at $3.78, the shares have nearly tripled, climbing above several long-term moving averages in the process, including their 50-, 80-, and 120-day trendlines. The security could take out its 200-day moving average in today's trading, last seen at $3.91, not toppled on a daily closing basis since last September.

Most analysts are upbeat toward Orion Group, with two-thirds of those in coverage maintaining a "strong buy" rating. Plus, the average 12-month price target of $6.05 is a 60% premium to Tuesday's settlement price. And earlier this month, Noble said the equity is "poised for a strong rebound," and reiterated its "outperform" rating and $7.10 price target.

Elsewhere, shorts have started to cover, with short interest down 2.7% in the most recent reporting period. The 1.82 million shares still sold short accounts for a healthy 6.6% of ORN's available float, or 3.8 time the average daily pace of trading.

 

 
 

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