Why Is HELIX ENERGY SOLUTIO (HLX) Stock Moving Today?

Why HLX stock is up today

HLX stock rose 4.64 percent to $10.61 on Friday as shareholders approved the all-stock merger between Helix Energy Solutions and Hornbeck Offshore Services. The deal is expected to close on September 1 with the combined entity trading on the NYSE under the HOS ticker. The positive shareholder vote provided a clear catalyst for the intraday rally.

What Happened

Helix Energy Solutions announced that shareholders had approved the combination with Hornbeck Offshore Services. The merger is all-stock and will create a new offshore services company. The U.S. Federal Trade Commission had previously granted early termination of the required 30-day anti-trust waiting period, removing a regulatory hurdle. The transaction is expected to close on September 1 and will result in the combined company trading under the HOS ticker.

In addition to the merger approval, Helix Energy Solutions reported Q2 earnings of $0.15 per share, exceeding the estimated $0.08. However, revenue came in at $304.016 million, below the estimated $325.690 million. TD Cowen maintained a Buy rating on Helix Energy Solutions and raised its price target to $14.

What The Data Shows

HLX opened at $10.21, showing a 0.7 percent gap up from the previous close of $10.14. The stock reached a session high of $10.63 at 9:55 AM ET and a low of $9.96 at 9:10 AM ET. Trading volume was 0.1 million shares, which is 0.0 times the 3-month daily average. The stock closed at $10.59 with a market cap of $1.5 billion. The P/E ratio stands at 43.2, with a revenue growth of 11.5 percent in the trailing twelve months.

What To Watch

The merger is expected to close on September 1, and the combined company will begin trading under the HOS ticker. Investors should monitor the transition process and the performance of the new entity in the coming weeks.