MEG Energy (TSE:MEG) Sets New 1-Year High - Still a Buy?

Key Points

• MEG Energy shares reached a new 52-week high of C$28.94 during trading, closing slightly lower at C$28.59.
• Desjardins downgraded the stock from a "hold" to a "tender" rating with a price objective of C$28.00, while it holds a consensus rating of "Moderate Buy" with a target price of C$30.78.
• The company announced an increase in its quarterly dividend from $0.10 to $0.11 per share, representing a yield of 1.5%.

Shares of MEG Energy Corp. (TSE:MEG - Get Free Report) hit a new 52-week high on Monday . The company traded as high as C$28.94 and last traded at C$28.59, with a volume of 453637 shares trading hands. The stock had previously closed at C$28.35.

Wall Street Analyst Weigh In

Separately, Desjardins lowered MEG Energy from a "hold" rating to a "tender" rating and set a C$28.00 price objective on the stock. in a report on Monday, August 25th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and two have given a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of C$30.78.

MEG Energy Stock Performance

The company has a current ratio of 1.55, a quick ratio of 1.17 and a debt-to-equity ratio of 22.80. The firm has a fifty day moving average price of C$27.23 and a 200 day moving average price of C$24.59. The firm has a market cap of C$7.32 billion, a PE ratio of 13.76, a price-to-earnings-growth ratio of 0.17 and a beta of 0.93.

MEG Energy Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 15th. Stockholders of record on Wednesday, October 15th will be issued a dividend of $0.11 per share. The ex-dividend date is Friday, September 12th. This represents a $0.44 annualized dividend and a dividend yield of 1.5%. This is a boost from MEG Energy's previous quarterly dividend of $0.10. MEG Energy's payout ratio is presently 19.14%.

About MEG Energy

MEG Energy is engaged in in situ oil sands development and production in Alberta, Canada. As of March 2021, the company reported estimated net proved and probable reserves of 2 billion barrels of oil equivalent. Net production averaged 82,000 barrels per day in 2020.