Why Ring Energy Stock Dropped as Much as 14% Today
Shares of U.S. exploration and production company Ring Energy (NYSEMKT: REI) fell just over 14% at one point during early trading on Wednesday. At roughly 1:30 p.m. EST, the stock was still lower by 11%. There were two issues behind the negative mood.
Generally weak oil and natural gas prices were partly to blame. Relatively tiny Ring Energy (with a $350 million market cap) drills oil and gas, so the prices of these commodities have direct and material impact on the company's top and bottom lines. When energy prices go down, investors often sell the stock, too. However, Ring also released earnings after the market close on Tuesday.
Image source: Getty Images.
Source Fool.com