Cardinal Energy (TSE:CJ) Reaches New 52-Week High - Should You Buy?

Key Points

• 52-week high: Shares reached C$12.20 and multiple analysts have upgraded the stock, with MarketBeat showing a consensus Buy and a consensus target of C$12.00 (several firms at C$13.00).
• Dividend signal vs. risk: Cardinal declared a monthly C$0.06 dividend (≈5.9% yield), but the dividend payout ratio is an extremely high 553.85%, raising questions about sustainability.
• Mixed fundamentals: the latest quarter showed a C($0.18) EPS loss, valuation metrics include a P/E of 93.54 and market cap of ~C$2.11B, and liquidity is thin (current ratio 0.54), suggesting heightened risk despite the price rally.

Cardinal Energy Ltd. (TSE:CJ - Get Free Report) shares hit a new 52-week high during trading on Tuesday . The stock traded as high as C$12.20 and last traded at C$12.18, with a volume of 347755 shares. The stock had previously closed at C$11.93.

Wall Street Analyst Weigh In

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

Cardinal Energy Trading Up 1.9%

The company has a current ratio of 0.54, a quick ratio of 0.67 and a debt-to-equity ratio of 29.09. The company's fifty day moving average is C$10.73 and its 200-day moving average is C$9.39. The firm has a market capitalization of C$2.11 billion, a P/E ratio of 93.54, a P/E/G ratio of -0.26 and a beta of 0.16.

Cardinal Energy (TSE:CJ - Get Free Report) last posted its quarterly earnings data 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 return on equity of 2.35% and a net margin of 4.22%. As a group, sell-side analysts anticipate that Cardinal Energy Ltd. will post 0.625118 earnings per share for the current fiscal year.

Cardinal Energy Announces Dividend

The business also recently declared a monthly dividend, which will be paid on Friday, May 15th. Shareholders of record on Friday, May 15th will be issued a $0.06 dividend. The ex-dividend date of this dividend is Thursday, April 30th. This represents a c) dividend on an annualized basis and a yield of 5.9%. Cardinal Energy's dividend payout ratio is 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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