Here's Why RigNet Inc's Stock Rallied in September
Shares of RigNet (NASDAQ: RNET) rebounded in September by rising 6.5% for the month, though even with that rally, it's still down nearly 25% for the year. However, its outlook brightened thanks to a rebound in oil prices, and renewed bullishness in the offshore drilling sector, which sent those stocks soaring last month.
Crude prices surged in September, led by the global benchmark, Brent, which was up 8.8% for the month and closed at $57.54 per barrel. That price point is getting closer to the level that would incentivize oil producers to start adding more rigs. That increase in activities would benefit RigNet since it provides remote communication services to the sector, so more rigs working means more work for RigNet.
More of these could be going back to work next year. Image source: Getty Images.
Source: Fool.com
