Cardinal Energy (TSE:CJ) Sets New 1-Year High - Should You Buy?

Key Points

• Cardinal Energy hit a new 52-week high, trading up to C$11.77 (last C$11.54) on heavy volume, and analysts have raised targets with a consensus Buy rating and an average target of C$10.50.
• The company pays a monthly dividend of C$0.06 (annualized yield ~6.2%), but the dividend payout ratio is an extremely high 553.85%, indicating potential sustainability concerns.
• Cardinal has a market cap of C$2.01 billion, reported a quarterly EPS loss of C($0.18) while analysts expect ~0.625 EPS for the fiscal year, and the stock's P/E sits elevated at 89.38, suggesting a stretched valuation versus recent earnings.

Cardinal Energy Ltd. (TSE:CJ - Get Free Report)'s share price hit a new 52-week high on Monday . The company traded as high as C$11.77 and last traded at C$11.54, with a volume of 660586 shares changing hands. The stock had previously closed at C$11.30.

Analysts Set New Price Targets

CJ has been the subject of several research analyst reports. Raymond James Financial upped their price target on Cardinal Energy from C$9.00 to C$9.50 and gave the stock a "market perform" rating in a research note on Thursday, February 5th. Royal Bank Of Canada lifted their price objective 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. Finally, Canadian Imperial Bank of Commerce upgraded Cardinal Energy from a "hold" rating to a "strong-buy" rating and boosted their target price for the stock from C$7.75 to C$11.00 in a report on Thursday, February 5th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Buy" and a consensus target price of C$10.50.

Cardinal Energy Trading Up 2.8%

The firm has a market cap of C$2.01 billion, a price-to-earnings ratio of 89.38, a price-to-earnings-growth ratio of -0.26 and a beta of 0.53. 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 moving average price of C$9.83 and a 200-day moving average price of C$8.88.

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

Cardinal Energy Dividend Announcement

The company also recently announced a monthly dividend, which was paid on Monday, March 16th. Stockholders of record on Monday, March 16th were paid a $0.06 dividend. The ex-dividend date was Friday, February 27th. This represents a c) annualized dividend and a dividend yield of 6.2%. 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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