Obsidian Energy (NYSEAMERICAN:OBE) Shares Gap Up - Should You Buy?

Key Points

• Obsidian Energy shares jumped: The stock opened at $10.09 versus a prior close of $9.41 and last traded near $9.94.
• Analysts remain moderately bullish: RBC raised its price target to $18 while maintaining a sector-perform rating, and BMO reaffirmed an outperform rating. The consensus rating is “Moderate Buy,” with an average target price of $18.
• Institutional ownership increased: Several major investors, including Goldman Sachs, Jane Street, First Trust Advisors, and Raymond James, recently expanded their positions; institutions collectively own 13.51% of the company.

Obsidian Energy Ltd (NYSEAMERICAN:OBE - Get Free Report) TSE: PWT's share price gapped up before the market opened on Wednesday . The stock had previously closed at $9.41, but opened at $10.09. Obsidian Energy shares last traded at $9.9410, with a volume of 158,880 shares changing hands.

Analyst Ratings Changes

OBE has been the subject of several analyst reports. Royal Bank Of Canada lifted their price objective on shares of Obsidian Energy from $14.00 to $18.00 and gave the company a "sector perform" rating in a research note on Monday, May 11th. BMO Capital Markets reissued an "outperform" rating on shares of Obsidian Energy in a research report on Tuesday, June 2nd. Two research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $18.00.

Obsidian Energy Price Performance

The stock has a 50 day moving average of $9.95 and a two-hundred day moving average of $9.41. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.58 and a current ratio of 0.58. The firm has a market capitalization of $660.86 million, a P/E ratio of -989.40 and a beta of 0.16.

Hedge Funds Weigh In On Obsidian Energy

Institutional investors have recently modified their holdings of the company. Goldman Sachs Group Inc. lifted its stake in shares of Obsidian Energy by 11.5% in the first quarter. Goldman Sachs Group Inc. now owns 937,349 shares of the oil and gas company's stock worth $5,493,000 after buying an additional 96,428 shares during the last quarter. Jane Street Group LLC grew its stake in Obsidian Energy by 52.3% in the 1st quarter. Jane Street Group LLC now owns 64,844 shares of the oil and gas company's stock valued at $380,000 after buying an additional 22,273 shares during the last quarter. First Trust Advisors LP raised its holdings in Obsidian Energy by 38.7% in the 2nd quarter. First Trust Advisors LP now owns 344,042 shares of the oil and gas company's stock worth $1,909,000 after acquiring an additional 95,932 shares during the period. Qube Research & Technologies Ltd bought a new position in Obsidian Energy in the 2nd quarter worth $56,000. Finally, Raymond James Financial Inc. raised its holdings in Obsidian Energy by 17.3% in the 2nd quarter. Raymond James Financial Inc. now owns 203,809 shares of the oil and gas company's stock worth $1,131,000 after acquiring an additional 30,039 shares during the period. Institutional investors own 13.51% of the company's stock.

About Obsidian Energy

Obsidian Energy Ltd. explores for, develops, and produces oil and natural gas in western Canada. It holds interests in the Alberta Viking, Cardium, Deep Basin, and Peace River areas. The company was formerly known as Penn West Petroleum Ltd. and changed its name to Obsidian Energy Ltd. in June 2017. Obsidian Energy Ltd. was founded in 1979 and is headquartered in Calgary, Canada.

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