Cardinal Energy (TSE:CJ) Sets New 52-Week High - Time to Buy?

Key Points

• New 52-week high: Cardinal Energy shares reached C$11.77 (last C$11.72) on volume of 277,171 shares, trading up roughly 6.4%.
• Analyst upgrades: Multiple brokers raised ratings and price targets (CIBC to Strong Buy, Raymond James to Moderate Buy, RBC to Outperform), leaving a consensus Buy rating and an average target of C$11.67.
• Mixed fundamentals: The company reported quarterly EPS of C($0.18) with a high P/E of 91.31 and low current ratio (0.54), and while it pays a monthly dividend yielding 6.1%, the payout ratio is an elevated 553.85%, raising sustainability concerns.

Cardinal Energy Ltd. (TSE:CJ - Get Free Report)'s stock price reached a new 52-week high during trading on Tuesday . The stock traded as high as C$11.77 and last traded at C$11.72, with a volume of 277171 shares trading hands. The stock had previously closed at C$11.16.

Analyst Ratings Changes

A number of brokerages have issued reports on CJ. Canadian Imperial Bank of Commerce upgraded Cardinal Energy from a "hold" rating to a "strong-buy" rating and upped their price objective for the company from C$7.75 to C$11.00 in a research note on Thursday, February 5th. Raymond James Financial upgraded Cardinal Energy from a "hold" rating to a "moderate buy" rating and upped their price objective for the company from C$9.50 to C$13.00 in a research note on Monday, March 30th. Finally, Royal Bank Of Canada upped 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. One research analyst has rated the stock with a Strong Buy rating and two have given a Buy rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and an average price target of C$11.67.

Cardinal Energy Trading Up 6.4%

The company has a debt-to-equity ratio of 29.09, a current ratio of 0.54 and a quick ratio of 0.67. The stock has a market capitalization of C$2.05 billion, a PE ratio of 91.31, a PEG ratio of -0.26 and a beta of 0.16. The stock's 50 day simple moving average is C$10.09 and its two-hundred day simple moving average is C$9.03.

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

Cardinal Energy Announces Dividend

The company also recently announced a monthly dividend, which was paid on Monday, March 16th. Shareholders 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 6.1%. 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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