The most recent short interest data was recently released by the NASDAQ for the 12/13/2013 settlement date, and Halcon Resources Corp (HK - Get Report) is one of the most shorted stocks of the Russell 3000, based on 8.01 "days to cover" versus the median component at 4.20. There are a number of ways to look at short data, but one metric that we find particularly useful is the "days to cover" because it considers both the total shares short and the average daily volume of shares typically traded. The number of shares short is then divided by the average daily volume, to express the total number of trading days it would take to close out all of the open short positions if every share traded represented a short position being closed.
START SLIDESHOW:
Ten Bargains You Can Buy Cheaper Than The Insiders Did »
So it would stand to reason that should some unexpectedly good news come out, and short sellers did not have 9 days of patience but instead wanted to cover their short positions very suddenly, that situation could result in sending the stock higher until the higher price produces enough sellers to generate the necessary volume to close out those positions quickly.
Halcon Resources Corp ( HK - Get Report) has something relatively rare for a stock with this much short interest, that being insiders taking the other side of the trade. Looking back over the trailing six month period, HK has seen 14 different instances of insider buying, as summarized by the table below:| Purchased | Insider | Title | Shares | Price/Share | Value |
|---|---|---|---|---|---|
| 08/08/2013 | Floyd C. Wilson | Chairman and CEO | 100,000 | $5.10 | $510,000.00 |
| 08/08/2013 | Stephen W. Herod | President | 25,000 | $5.10 | $127,500.00 |
| 08/08/2013 | Mark Mize | EVP, CFO and Treasurer | 50,000 | $5.10 | $255,000.00 |
| 08/08/2013 | David S. Elkouri | EVP, General Counsel | 20,000 | $5.10 | $102,000.00 |
| 08/08/2013 | Larry L. Helm | EVP, Corporate Affairs | 20,000 | $5.10 | $102,000.00 |
| 08/08/2013 | Charles E. Cusack III | EVP, Chief Operating Officer | 20,000 | $5.10 | $102,000.00 |
| 08/08/2013 | Joseph S. Rinando III | VP, Chief Accounting Officer | 10,000 | $5.10 | $51,000.00 |
| 08/08/2013 | Leah R. Kasparek | VP, Human Resources | 20,000 | $5.10 | $102,000.00 |
| 08/08/2013 | James W. Christmas | Director | 100,000 | $5.10 | $510,000.00 |
| 08/08/2013 | Thomas R. Fuller | Director | 40,000 | $5.10 | $204,000.00 |
| 08/08/2013 | David S. Hunt | Director | 200,000 | $5.10 | $1,020,000.00 |
| 08/08/2013 | Tina S. Obut | VP, Corporate Reserves | 10,000 | $5.29 | $52,900.00 |
| 08/08/2013 | Pension Plan Investment Board Canada | 5,185,553 | $5.10 | $26,446,320.30 | |
| 08/20/2013 | Charles E. Cusack III | EVP, Chief Operating Officer | 40,000 | $4.86 | $194,400.00 |
| 08/21/2013 | David S. Hunt | Director | 50,000 | $4.73 | $236,656.56 |
| 11/06/2013 | Charles E. Cusack III | EVP, Chief Operating Officer | 20,000 | $4.75 | $95,000.00 |
| 11/06/2013 | Tina S. Obut | VP, Corporate Reserves | 5,000 | $4.67 | $23,349.50 |
| 11/07/2013 | Charles E. Cusack III | EVP, Chief Operating Officer | 20,000 | $4.55 | $91,000.00 |
| 11/19/2013 | Charles E. Cusack III | EVP, Chief Operating Officer | 20,000 | $4.23 | $84,600.00 |
| 11/22/2013 | Tina S. Obut | VP, Corporate Reserves | 5,000 | $4.11 | $20,549.50 |
| 12/04/2013 | Tucker S. Bridwell | Director | 10,000 | $3.80 | $37,999.00 |
| 12/04/2013 | David S. Elkouri | EVP, General Counsel | 25,000 | $3.72 | $93,120.00 |
| 12/05/2013 | Mark Mize | EVP, CFO and Treasurer | 50,000 | $4.00 | $199,898.29 |
| 12/05/2013 | Charles E. Cusack III | EVP, Chief Operating Officer | 40,000 | $3.81 | $152,319.67 |
| 12/05/2013 | Scott M. Zuehlke | VP, Investor Relations | 2,500 | $3.99 | $9,975.00 |
| 12/05/2013 | Floyd C. Wilson | Chairman and CEO | 100,000 | $4.00 | $399,616.00 |
| 12/06/2013 | David S. Hunt | Director | 10,000 | $3.82 | $38,200.00 |
In recent trading, shares of Halcon Resources Corp ( HK - Get Report) were changing hands at $3.92/share. 
