Obsidian Energy (NYSEAMERICAN:OBE) Trading Up 6.5% - Should You Buy?

Key Points

• Obsidian Energy shares rose 6.5% to $11.36 in mid-day trading, although volume was 39% below the average session level.
• Analysts maintain a cautiously positive outlook, with two Buy ratings and one Hold rating producing a “Moderate Buy” consensus and an average price target of $18.00.
• Institutional ownership stands at 13.51%, with Royal Bank of Canada and Arrowstreet Capital among investors that significantly increased their positions recently.

Shares of Obsidian Energy Ltd (NYSEAMERICAN:OBE - Get Free Report) TSE: PWT rose 6.5% during mid-day trading on Monday . The company traded as high as $11.36 and last traded at $11.36. 514,872 shares changed hands during mid-day trading, a decline of 39% from the average session volume of 841,924 shares. The stock had previously closed at $10.67.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on OBE shares. BMO Capital Markets reiterated an "outperform" rating on shares of Obsidian Energy in a research report on Tuesday, June 2nd. Royal Bank Of Canada upped their target price on Obsidian Energy from $14.00 to $18.00 and gave the company a "sector perform" rating in a report on Monday, May 11th. Two equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $18.00.

Obsidian Energy Stock Up 7.9%

The company has a debt-to-equity ratio of 0.25, a current ratio of 0.78 and a quick ratio of 0.78. The business's 50 day simple moving average is $9.52 and its 200 day simple moving average is $9.74. The company has a market capitalization of $768.41 million, a PE ratio of 41.11 and a beta of 0.15.

Institutional Trading of Obsidian Energy

Institutional investors have recently made changes to their positions in the company. Royal Bank of Canada grew its position in Obsidian Energy by 31.4% in the first quarter. Royal Bank of Canada now owns 4,444,416 shares of the oil and gas company's stock worth $42,089,000 after acquiring an additional 1,061,819 shares during the period. Arrowstreet Capital Limited Partnership lifted its stake in shares of Obsidian Energy by 137.8% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,996,167 shares of the oil and gas company's stock valued at $28,463,000 after purchasing an additional 1,736,064 shares during the last quarter. Dimensional Fund Advisors LP grew its holdings in shares of Obsidian Energy by 5.2% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,369,948 shares of the oil and gas company's stock worth $12,973,000 after purchasing an additional 67,919 shares during the period. Bank of America Corp DE purchased a new position in shares of Obsidian Energy during the 2nd quarter worth $7,777,000. Finally, Goldman Sachs Group Inc. grew its holdings 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 purchasing an additional 96,428 shares during the period. Hedge funds and other institutional investors 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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