Cardinal Energy (TSE:CJ) Share Price Crosses Above 50-Day Moving Average - Here's Why

Key Points

• Cardinal Energy shares crossed above its 50‑day moving average, trading as high as C$11.92 and last at C$11.74 versus the 50‑day MA of C$10.68.
• Multiple brokerages have upgraded the stock to Buy/Strong Buy and raised targets, leaving a MarketBeat consensus target of C$12.00.
• The company declared a monthly dividend of C$0.06 (annualized yield ~6.1%), but the dividend payout ratio is extremely high at 553.85% and the firm posted C($0.18) EPS last quarter, signaling sustainability risks.

Cardinal Energy Ltd. (TSE:CJ - Get Free Report) shares passed above its fifty day moving average during trading on Friday . The stock has a fifty day moving average of C$10.68 and traded as high as C$11.92. Cardinal Energy shares last traded at C$11.74, with a volume of 1,408,769 shares changing hands.

Analyst Upgrades and Downgrades

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

Cardinal Energy Stock Down 1.9%

The stock has a market cap of C$2.03 billion, a price-to-earnings ratio of 90.31, a P/E/G ratio of -0.26 and a beta of 0.16. 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 stock's 50-day moving average price is C$10.68 and its 200-day moving average price is C$9.35.

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 for the quarter. Cardinal Energy had a return on equity of 2.35% and a net margin of 4.22%.The firm had revenue of C$109.19 million for the quarter. On average, sell-side analysts expect that Cardinal Energy Ltd. will post 0.625118 earnings per share for the current year.

Cardinal Energy Announces Dividend

The firm 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 dividend of $0.06 per share. This represents a c) dividend on an annualized basis and a yield of 6.1%. The ex-dividend date is Thursday, April 30th. Cardinal Energy's dividend payout ratio (DPR) 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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