Cardinal Energy (TSE:CJ) Hits New 12-Month High - Should You Buy?

Key Points

• Cardinal Energy hit a new 52-week high of C$12.44 (last C$12.40) and has attracted multiple analyst upgrades to Buy/Outperform/Strong‑Buy, with a MarketBeat consensus rating of Buy and an average price target of C$12.00.
• The company announced a monthly dividend of C$0.06 (ex-dividend April 30) implying a 5.8% yield, but the payout ratio is an unsustainably high 553.85%, signaling dividend risk.
• Fundamentals are mixed: Cardinal reported C($0.18) EPS for the quarter, has a high P/E of 95.54 and weak liquidity (current ratio 0.54), even as it transitions to production from its first SAGD project in Saskatchewan.

Cardinal Energy Ltd. (TSE:CJ - Get Free Report)'s stock price reached a new 52-week high during trading on Monday . The stock traded as high as C$12.44 and last traded at C$12.40, with a volume of 151616 shares traded. The stock had previously closed at C$12.37.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on CJ shares. Raymond James Financial raised shares of Cardinal Energy from a "hold" rating to a "moderate buy" rating and upped their price target for the company from C$9.50 to C$13.00 in a report on Monday, March 30th. BMO Capital Markets upgraded shares of Cardinal Energy from a "hold" rating to an "outperform" rating and set a C$13.00 target price for the company in a research note on Tuesday, April 7th. Canadian Imperial Bank of Commerce upgraded shares of Cardinal Energy from a "hold" rating to a "strong-buy" rating and increased their price objective for the stock from C$7.75 to C$11.00 in a research note on Thursday, February 5th. Finally, Royal Bank Of Canada lifted their target price on Cardinal Energy from C$9.50 to C$11.00 and gave the company an "outperform" rating in a research note on Monday, March 16th. One investment analyst has rated the stock with a Strong Buy rating and three have issued a Buy rating to the stock. According to MarketBeat, the company has an average rating of "Buy" and a consensus price target of C$12.00.

Cardinal Energy Price Performance

The company has a market capitalization of C$2.15 billion, a P/E ratio of 95.54, a PEG ratio of -0.26 and a beta of 0.16. The company has a quick ratio of 0.67, a current ratio of 0.54 and a debt-to-equity ratio of 29.09. The business has a 50 day simple moving average of C$10.88 and a 200-day simple moving average of C$9.48.

Cardinal Energy (TSE:CJ - Get Free Report) last posted its earnings results on Thursday, March 12th. The company reported C($0.18) earnings per share (EPS) for the quarter. The firm had revenue of C$109.19 million for the quarter. Cardinal Energy had a net margin of 4.22% and a return on equity of 2.35%. Analysts predict that Cardinal Energy Ltd. will post 0.625118 EPS for the current fiscal year.

Cardinal Energy Announces Dividend

The firm also recently announced a monthly dividend, which will be paid on Friday, May 15th. Shareholders of record on Friday, May 15th will be paid a dividend of $0.06 per share. The ex-dividend date of this dividend is Thursday, April 30th. This represents a c) annualized dividend and a yield of 5.8%. Cardinal Energy's payout ratio is presently 553.85%.

Cardinal Energy Company Profile

Cardinal is a Canadian oil and natural gas production company with operations focused on low decline sustainable oil production in Western Canada. Cardinal has recently completed its first thermal SAGD project in Reford, Saskatchewan and has transitioned to the production phase of operations. The Company's portfolio of conventional and SAGD project inventory offers a complimentary low decline, long life resource base that is ideally suited to sustain our commitment to meaningful dividend returns to shareholders.

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