MEG Energy (TSE:MEG) Sets New 12-Month High - Should You 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 during trading on Monday . The stock traded as high as C$28.94 and last traded at C$28.59, with a volume of 453637 shares traded. The stock had previously closed at C$28.35.

Wall Street Analysts Forecast Growth

Separately, Desjardins downgraded shares of MEG Energy from a "hold" rating to a "tender" rating and set a C$28.00 price objective for the company. in a research 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, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of C$30.78.

MEG Energy Stock Up 1.9%

The stock has a 50 day moving average of C$26.91 and a 200-day moving average of C$24.40. The firm has a market capitalization of C$7.35 billion, a P/E ratio of 13.82, a PEG ratio of 0.17 and a beta of 0.93. The company has a debt-to-equity ratio of 22.80, a quick ratio of 1.17 and a current ratio of 1.55.

MEG Energy Increases Dividend

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

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