NEW YORK (TheStreet) -- Shares of Sanchez Energy (SN) plummeted to a 52-week low of $6.96 on heavy trading volume as energy shares in the S&P 500 traded at a 17-month low on Monday, and oil prices sank to a new five-year low, Bloomberg reports.
About 5.23 million shares changed hands by 3:52 p.m. in New York, compared to the average of 2.96 million.
West Texas Intermediate for January delivery, the U.S. benchmark, declined 4.24% to $63.05 this afternoon in New York. Brent for January settlement traded at $66.18 a barrel.
The price drop occurred after Morgan Stanley reduced its 2015 forecast for Brent crude in a research note issued late Friday. The firm said Brent could drop to as low as $53 a barrel next year, although it forecast a base case scenario of $70. Morgan Stanley had previously expected $98 a barrel.
"Without OPEC intervention, markets risk becoming unbalanced, with peak oversupply likely in the second quarter of 2015. Prices are set up to fall in the first half of 2015," the firm wrote.
Separately, TheStreet Ratings team rates SANCHEZ ENERGY CORP as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate SANCHEZ ENERGY CORP (SN) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and generally high debt management risk."