Obsidian Energy (TSE:OBE) Shares Cross Below 50-Day Moving Average - Time to Sell?

Key Points

• Obsidian Energy shares fell below their 50-day moving average, reaching C$13.68 before last trading at C$14.25 on volume of 320,764 shares.
• Analyst sentiment remains positive overall, with two Buy ratings and one Hold rating producing a “Moderate Buy” consensus; the average price target is C$14.00, while Raymond James raised its target to C$20.00.
• The company reported quarterly EPS of C$0.61 and revenue of C$181.30 million. Insider activity was mixed, with an executive selling 5,000 shares while a director purchased 3,000 shares, and insiders collectively bought 30,600 shares over the past 90 days.

Obsidian Energy Ltd. (TSE:OBE - Get Free Report) shares crossed below its fifty day moving average during trading on Thursday . The stock has a fifty day moving average of C$13.83 and traded as low as C$13.68. Obsidian Energy shares last traded at C$14.25, with a volume of 320,764 shares changing hands.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on OBE. Royal Bank Of Canada upgraded shares of Obsidian Energy to a "hold" rating in a report on Monday, May 11th. Raymond James Financial boosted their price objective on Obsidian Energy from C$19.00 to C$20.00 and gave the stock an "outperform" rating in a research report on Tuesday, June 2nd. 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 stock presently has an average rating of "Moderate Buy" and a consensus target price of C$14.00.

Obsidian Energy Price Performance

The company's 50 day moving average price is C$13.83 and its 200 day moving average price is C$13.09. The firm has a market capitalization of C$951.57 million, a P/E ratio of 1,425.00, a PEG ratio of 0.08 and a beta of -0.30. The company has a debt-to-equity ratio of 19.51, a current ratio of 0.58 and a quick ratio of 0.41.

Obsidian Energy (TSE:OBE - Get Free Report) last released its earnings results on Thursday, July 30th. The company reported C$0.61 earnings per share for the quarter. The company had revenue of C$181.30 million during the quarter. Obsidian Energy had a return on equity of 0.08% and a net margin of 0.21%. As a group, sell-side analysts anticipate that Obsidian Energy Ltd. will post 1.5996205 EPS for the current fiscal year.

Insider Activity

In related news, insider Gareth Robin Sykes sold 5,000 shares of the business's stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of C$17.74, for a total transaction of C$88,700.00. Following the completion of the transaction, the insider owned 147,977 shares in the company, valued at approximately C$2,625,111.98. The trade was a 3.27% decrease in their ownership of the stock. Also, Director Edward Hume Kernaghan acquired 3,000 shares of the stock in a transaction that occurred on Monday, July 6th. The stock was purchased at an average price of C$11.25 per share, with a total value of C$33,750.00. Following the transaction, the director owned 4,032,914 shares in the company, valued at C$45,370,282.50. This represents a 0.07% increase in their ownership of the stock. Insiders have purchased a total of 30,600 shares of company stock valued at $461,458 in the last 90 days. 1.20% of the stock is owned by company insiders.

Obsidian Energy Company Profile

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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