Obsidian Energy (NYSEAMERICAN:OBE) Trading Up 5.4% - Here's Why

Key Points

• Obsidian Energy shares rose 5.4% on Friday, trading as high as $9.32 after closing at $8.87 the previous day, though volume was far below average.
• Analyst sentiment remains constructive, with BMO Capital Markets reiterating an outperform rating and RBC lifting its price target to $18.00; the stock’s consensus rating is Moderate Buy.
• The company has a market cap of about $600 million and a low debt-to-equity ratio of 0.18, while institutional investors recently made modest additions to their holdings.

Obsidian Energy Ltd (NYSEAMERICAN:OBE - Get Free Report) TSE: PWT traded up 5.4% during trading on Friday . The stock traded as high as $9.32 and last traded at $9.3510. 110,184 shares traded hands during mid-day trading, a decline of 87% from the average session volume of 828,922 shares. The stock had previously closed at $8.87.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on OBE. BMO Capital Markets reaffirmed an "outperform" rating on shares of Obsidian Energy in a research note on Tuesday, June 2nd. Royal Bank Of Canada increased their target price on shares of Obsidian Energy from $14.00 to $18.00 and gave the company a "sector perform" rating in a research report on Monday, May 11th. Finally, Raymond James Financial raised shares of Obsidian Energy from a "hold" rating to a "moderate buy" rating in a research note on Monday, March 30th. Two equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $18.00.

Obsidian Energy Trading Up 1.4%

The company has a current ratio of 0.58, a quick ratio of 0.58 and a debt-to-equity ratio of 0.18. The company has a fifty day moving average price of $10.44 and a two-hundred day moving average price of $9.19. The firm has a market capitalization of $600.17 million, a price-to-earnings ratio of -899.60 and a beta of 0.16.

Institutional Trading of Obsidian Energy

Large investors have recently added to or reduced their stakes in the stock. Raymond James Financial Inc. raised its holdings in shares of Obsidian Energy by 1.2% during the 3rd quarter. Raymond James Financial Inc. now owns 206,206 shares of the oil and gas company's stock worth $1,349,000 after acquiring an additional 2,397 shares during the period. First Trust Advisors LP grew its holdings in shares of Obsidian Energy by 0.8% in the third quarter. First Trust Advisors LP now owns 346,860 shares of the oil and gas company's stock valued at $2,268,000 after purchasing an additional 2,818 shares during the period. Quarry LP purchased a new stake in shares of Obsidian Energy in the third quarter valued at about $31,000. State of Wyoming acquired a new stake in Obsidian Energy during the first quarter worth about $84,000. Finally, Marks Group Wealth Management Inc purchased a new position in Obsidian Energy during the fourth quarter worth about $61,000. 13.51% of the stock is currently owned by hedge funds and other institutional investors.

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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