Obsidian Energy (TSE:OBE) Reaches New 52-Week High - Should You Buy?

Key Points

• Obsidian Energy shares hit a new 52-week high, trading as high as C$16.92 (last C$16.79) on volume of 339,360 shares, up about 5.2% from the prior close.
• Analysts have upgraded the stock (two Buys, one Hold) and the consensus rating is Moderate Buy, but the consensus target price of C$12.33 remains well below the current share price.
• Fundamentals are mixed: market cap C$1.14B with a high PE ratio of 34.33, weak liquidity (current ratio 0.54), very high debt-to-equity of 15.52, and recent insider selling has reduced holdings.

Obsidian Energy Ltd. (TSE:OBE - Get Free Report)'s share price hit a new 52-week high during trading on Wednesday . The stock traded as high as C$16.92 and last traded at C$16.79, with a volume of 339360 shares changing hands. The stock had previously closed at C$15.99.

Analyst Upgrades and Downgrades

Several analysts have weighed in on OBE shares. Raymond James Financial raised shares of Obsidian Energy from a "hold" rating to a "moderate buy" rating and boosted their target price for the stock from C$10.00 to C$15.00 in a research report on Monday, March 30th. BMO Capital Markets raised their price target on shares of Obsidian Energy from C$10.00 to C$12.00 and gave the stock an "outperform" rating in a report on Friday, February 20th. Finally, Royal Bank Of Canada lifted their price objective on shares of Obsidian Energy from C$9.00 to C$10.00 and gave the company a "hold" rating in a research note on Friday, February 20th. Two research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of C$12.33.

Obsidian Energy Stock Up 5.2%

The stock has a market cap of C$1.14 billion, a PE ratio of 34.33, a P/E/G ratio of 0.08 and a beta of -0.34. The business has a 50 day moving average price of C$11.97 and a 200 day moving average price of C$9.83. The company has a quick ratio of 0.41, a current ratio of 0.54 and a debt-to-equity ratio of 15.52.

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

Insider Activity

In related news, insider Gareth Robin Sykes sold 7,850 shares of the stock in a transaction on Thursday, March 19th. The shares were sold at an average price of C$12.04, for a total transaction 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 represents a 5.60% decrease in their ownership of the stock. In the last ninety days, insiders have sold 14,735 shares of company stock valued at $178,579. 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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