Obsidian Energy (TSE:OBE) Hits New 12-Month High - Still a Buy?

Key Points

• Obsidian Energy hit a new 52-week high (traded up to C$18.58) as analysts raised targets — notably Raymond James to C$19 with an "outperform" — and MarketBeat's consensus rates the stock a Moderate Buy with a C$13.67 target.
• Despite the rally, the company reported a quarterly loss of C($0.18) EPS and shows potential liquidity and leverage concerns (current ratio 0.54, quick ratio 0.41, debt-to-equity 15.52) even as market cap is ~C$1.23B and PE is 37.2.
• Insiders have been net sellers recently (14,735 shares sold last quarter, including 7,850 by Gareth Sykes), leaving insiders with about 1.2% ownership.

Obsidian Energy Ltd. (TSE:OBE - Get Free Report)'s stock price reached a new 52-week high during trading on Tuesday . The stock traded as high as C$18.58 and last traded at C$18.29, with a volume of 365254 shares changing hands. The stock had previously closed at C$17.77.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on OBE. Raymond James Financial lifted their price objective on Obsidian Energy from C$14.00 to C$19.00 and gave the company an "outperform" rating in a research note on Friday. BMO Capital Markets upped their target price on Obsidian Energy from C$10.00 to C$12.00 and gave the stock an "outperform" rating in a research note on Friday, February 20th. Finally, Royal Bank Of Canada raised their target price on Obsidian Energy from C$9.00 to C$10.00 and gave the stock a "hold" rating in a report on Friday, February 20th. Two investment analysts have rated the stock with a Buy rating and one has issued 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 a consensus target price of C$13.67.

Obsidian Energy Stock Up 2.6%

The company has a debt-to-equity ratio of 15.52, a current ratio of 0.54 and a quick ratio of 0.41. The business's fifty day simple moving average is C$12.55 and its two-hundred day simple moving average is C$10.06. The company has a market cap of C$1.23 billion, a PE ratio of 37.20, a PEG ratio of 0.08 and a beta of -0.34.

Obsidian Energy (TSE:OBE - Get Free Report) last posted its earnings results on Thursday, February 19th. The company reported C($0.18) earnings per share (EPS) for the quarter. Obsidian Energy had a return on equity of 2.51% and a net margin of 5.85%.The firm had revenue of C$114.80 million for the quarter. On average, analysts predict that Obsidian Energy Ltd. will post 1.5996205 earnings per share for the current year.

Insider Transactions at Obsidian Energy

In other Obsidian Energy news, insider Gareth Robin Sykes sold 7,850 shares of the firm's stock in a transaction that occurred on Thursday, March 19th. The stock was sold at an average price of C$12.04, for a total value of C$94,514.00. Following the sale, the insider directly owned 132,244 shares of the company's stock, valued at approximately C$1,592,217.76. This trade represents a 5.60% decrease in their ownership of the stock. Insiders sold a total of 14,735 shares of company stock worth $178,579 in the last quarter. Corporate insiders own 1.20% of the company's stock.

About Obsidian Energy

Obsidian Energy is an intermediate-sized oil and gas producer with a well-balanced portfolio of high-quality assets, primarily in the Peace River, Willesden Green and Viking areas in Alberta. The Company's business is to explore for, develop and hold interests in oil and natural gas properties and related production infrastructure in the Western Canada Sedimentary Basin.

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