MEG Energy (TSE:MEG) Stock Passes Above 50 Day Moving Average - Here's Why

Key Points

• MEG Energy's share price recently surpassed its 50-day moving average of C$26.07, with the stock trading at C$26.15 amid a volume of 664,907 shares.
• CIBC downgraded the target price for MEG Energy from C$32.00 to C$28.00, while the consensus rating remains "Moderate Buy" with a target price of C$30.61.
• The company announced an increase in its quarterly dividend to $0.11 per share, marking a rise from the previous $0.10 and reflecting a dividend yield of 1.7%.

MEG Energy Corp. (TSE:MEG - Get Free Report) passed above its 50 day moving average during trading on Tuesday . The stock has a 50 day moving average of C$26.07 and traded as high as C$26.65. MEG Energy shares last traded at C$26.15, with a volume of 664,907 shares changing hands.

Analysts Set New Price Targets

Separately, CIBC lowered their price target on MEG Energy from C$32.00 to C$28.00 in a research note on Thursday, April 10th. Three investment analysts have rated the stock with a hold rating, one has assigned a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of C$30.61.

MEG Energy Price Performance

The stock has a 50 day moving average of C$26.16 and a two-hundred day moving average of C$23.83. The company has a debt-to-equity ratio of 22.80, a quick ratio of 1.17 and a current ratio of 1.55. The firm has a market capitalization of C$6.73 billion, a P/E ratio of 13.75, a P/E/G ratio of 0.17 and a beta of 2.89.

MEG Energy Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 15th. Investors of record on Friday, September 12th will be paid a $0.11 dividend. This represents a $0.44 dividend on an annualized basis and a dividend yield of 1.7%. This is an increase from MEG Energy's previous quarterly dividend of $0.10. MEG Energy's dividend payout ratio (DPR) is presently 21.19%.

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.