Obsidian Energy (NYSEAMERICAN:OBE) Trading Up 6.2% - Still a Buy?

Key Points

• Shares jumped 6.2% to $11.2180 on Tuesday with 961,276 shares traded, about 31% above the average session volume.
• Raymond James upgraded Obsidian to a "moderate buy" and the stock carries an overall consensus rating of Moderate Buy with a consensus target price of $10, which is below the current price.
• Institutional investors have been increasing positions—Royal Bank of Canada, Dimensional, Goldman Sachs, UBS and Millennium all raised stakes—while the company has a market cap of $761.75 million and a P/E of 34.65.

Obsidian Energy Ltd (NYSEAMERICAN:OBE - Get Free Report) TSE: PWT shot up 6.2% during trading on Tuesday . The company traded as high as $11.21 and last traded at $11.2180. 961,276 shares changed hands during mid-day trading, an increase of 31% from the average session volume of 736,118 shares. The stock had previously closed at $10.56.

Wall Street Analyst Weigh In

OBE has been the subject of a number of research reports. Raymond James Financial raised Obsidian Energy from a "hold" rating to a "moderate buy" rating in a report on Monday, March 30th. Royal Bank Of Canada upped their price target on shares of Obsidian Energy from $9.00 to $10.00 and gave the company a "sector perform" rating in a research note on Friday, February 20th. One analyst has rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat, Obsidian Energy presently has an average rating of "Moderate Buy" and a consensus target price of $10.00.

Obsidian Energy Trading Up 8.3%

The firm has a market capitalization of $761.75 million, a P/E ratio of 34.65 and a beta of -0.10. The company has a quick ratio of 0.54, a current ratio of 0.54 and a debt-to-equity ratio of 0.13. The firm has a 50 day moving average of $8.63 and a 200-day moving average of $7.08.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Royal Bank of Canada increased its holdings in Obsidian Energy by 57.4% in the 4th quarter. Royal Bank of Canada now owns 3,382,597 shares of the oil and gas company's stock valued at $20,734,000 after buying an additional 1,233,804 shares during the period. Dimensional Fund Advisors LP lifted its holdings in shares of Obsidian Energy by 7.7% during the 4th quarter. Dimensional Fund Advisors LP now owns 1,302,029 shares of the oil and gas company's stock worth $7,988,000 after acquiring an additional 93,403 shares during the period. Goldman Sachs Group Inc. boosted its position in shares of Obsidian Energy by 11.5% during the 1st quarter. Goldman Sachs Group Inc. now owns 937,349 shares of the oil and gas company's stock worth $5,493,000 after acquiring an additional 96,428 shares in the last quarter. UBS Group AG boosted its position in shares of Obsidian Energy by 460.2% during the 3rd quarter. UBS Group AG now owns 491,153 shares of the oil and gas company's stock worth $3,212,000 after acquiring an additional 403,486 shares in the last quarter. Finally, Millennium Management LLC increased its stake in Obsidian Energy by 80.3% in the fourth quarter. Millennium Management LLC now owns 487,895 shares of the oil and gas company's stock valued at $2,994,000 after acquiring an additional 217,239 shares during the last quarter. Institutional investors and hedge funds own 13.51% of the company's stock.

Obsidian Energy Company Profile

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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