Cardinal Energy (TSE:CJ) Stock Price Crosses Above Fifty Day Moving Average - What's Next?

Key Points

• Stock technicals: Cardinal Energy's shares have crossed above their 50-day moving average (50‑day MA C$10.44), trading as high as C$11.41 and last at C$11.25 on volume of 1,528,093 shares.
• Analyst sentiment: Multiple brokers (BMO, CIBC, RBC, Raymond James) have upgraded ratings recently, the consensus is a "Buy" with an average target of C$12.00 and some targets as high as C$13.00.
• Dividend and fundamentals: The company announced a monthly dividend of C$0.06 (ex-dividend Apr 30, pay May 15) implying a 6.4% yield, but the payout ratio is an extremely high 553.85% and the P/E is 86.54, suggesting the dividend may be unsustainably large relative to current earnings.

Cardinal Energy Ltd. (TSE:CJ - Get Free Report)'s stock price passed above its 50 day moving average during trading on Thursday . The stock has a 50 day moving average of C$10.44 and traded as high as C$11.41. Cardinal Energy shares last traded at C$11.25, with a volume of 1,528,093 shares changing hands.

Analyst Ratings Changes

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

Cardinal Energy Price Performance

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 business's fifty day moving average is C$10.44 and its 200 day moving average is C$9.20. The firm has a market capitalization of C$1.95 billion, a P/E ratio of 86.54, a P/E/G ratio of -0.26 and a beta of 0.16.

Cardinal Energy (TSE:CJ - Get Free Report) last issued its earnings results on Thursday, March 12th. The company reported C($0.18) earnings per share for the quarter. The business 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, analysts forecast that Cardinal Energy Ltd. will post 0.625118 EPS for the current year.

Cardinal Energy Announces Dividend

The business also recently announced a monthly dividend, which will be paid on Friday, May 15th. Investors of record on Friday, May 15th will be issued a $0.06 dividend. This represents a c) dividend on an annualized basis and a dividend yield of 6.4%. The ex-dividend date is Thursday, April 30th. 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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