Why This High-Flying Oil Stock Could Soar Even Higher
Shares of Continental Resources (NYSE: CLR) have skyrocketed in recent months. The oil company's stock price has more than doubled over the past year, including gaining over 14% at one point on Tuesday. Surging oil prices have been the main fuel driving the oil stock higher. However, its latest upward move came after its founder, billionaire oil man Harrold Hamm, offered to acquire all the outstanding shares he and his family don't already own at $70 apiece.
The oil stock's price quickly surged past that level after analysts and another large investor said they thought the company could be worth more. Here's why they believe Continental Resources has more upside potential even after its buyout offer.
On June 14, Continental Resources unveiled that it received a non-binding proposal letter from the company's founder Harrold Hamm and his family offering to acquire all the outstanding shares they don't own for $70 apiece. The Hamm Family collectively holds about 83% of the company's total outstanding shares. The offer price represented a 9% premium to Continental's closing price the day before announcing the proposal, an 11% premium over the last 30 days, and 21% above its average price in 2022.
Source Fool.com