Obsidian Energy (TSE:OBE) Shares Down 8.9% - What's Next?

Key Points

• Shares fell ~8.9% on Wednesday to C$12.37 (intraday low C$11.83) on volume of ~323,626 shares, roughly 9% below average trading volume.
• Analyst sentiment is cautiously positive: the consensus rating is "Moderate Buy" with a C$12.33 target, and Raymond James upgraded to Moderate Buy with a C$15 target while BMO and RBC also raised price objectives.
• Potential risks include a reported quarterly EPS of C($0.18), low liquidity (quick ratio 0.41, current ratio 0.54), a high debt-to-equity ratio (15.52), and insider selling of 14,735 shares in the last quarter.

Obsidian Energy Ltd. (TSE:OBE - Get Free Report)'s stock price was down 8.9% on Wednesday . The company traded as low as C$11.83 and last traded at C$12.37. Approximately 323,626 shares traded hands during trading, a decline of 9% from the average daily volume of 355,638 shares. The stock had previously closed at C$13.58.

Wall Street Analyst Weigh In

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

Obsidian Energy Stock Down 9.6%

The stock has a market capitalization of C$825.86 million, a price-to-earnings ratio of 25.04, a price-to-earnings-growth ratio of 0.08 and a beta of -0.34. The company has a quick ratio of 0.41, a current ratio of 0.54 and a debt-to-equity ratio of 15.52. The stock has a 50 day moving average price of C$11.29 and a 200 day moving average price of C$9.53.

Obsidian Energy (TSE:OBE - Get Free Report) last released its quarterly earnings data 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 firm had revenue of C$114.80 million during the quarter. As a group, analysts forecast that Obsidian Energy Ltd. will post 1.5996205 EPS for the current year.

Insider Activity at Obsidian Energy

In related news, insider Gareth Robin Sykes sold 7,850 shares of the business's stock in a transaction on Thursday, March 19th. The shares were sold at an average price of C$12.04, for a total value of C$94,514.00. Following the sale, the insider owned 132,244 shares of the company's stock, valued at C$1,592,217.76. The trade was a 5.60% decrease in their ownership of the stock. Insiders have sold a total of 14,735 shares of company stock worth $178,579 in the last quarter. 1.20% of the stock is currently owned by insiders.

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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