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

Key Points

• MEG Energy's stock crossed above its 50-day moving average of C$26.45, trading as high as C$27.70, with a last traded price of C$27.56.
• The company announced an increase in its quarterly dividend to $0.11 per share, representing a dividend yield of 1.6%.
• MEG Energy holds a market capitalization of C$7.14 billion and reported net production averaging 82,000 barrels per day in 2020.

Shares of MEG Energy Corp. (TSE:MEG - Get Free Report) crossed above its 50-day moving average during trading on Thursday . The stock has a 50-day moving average of C$26.45 and traded as high as C$27.70. MEG Energy shares last traded at C$27.56, with a volume of 661,400 shares.

Analysts Set New Price Targets

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. One investment 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. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of C$30.78.

MEG Energy Stock Up 0.4%

The firm has a market cap of C$7.29 billion, a price-to-earnings ratio of 14.89, a P/E/G ratio of 0.17 and a beta of 2.89. The firm's 50 day moving average price is C$26.58 and its two-hundred day moving average price is C$24.15. The company has a debt-to-equity ratio of 22.80, a current ratio of 1.55 and a quick ratio of 1.17.

MEG Energy Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 15th. Stockholders of record on Friday, September 12th will be paid a dividend of $0.11 per share. This is an increase from MEG Energy's previous quarterly dividend of $0.10. This represents a $0.44 annualized dividend and a dividend yield of 1.6%. MEG Energy's dividend payout ratio is 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.