Obsidian Energy (TSE:OBE) Trading Down 7.3% - Here's Why

Key Points

• Shares fell 7.3% intraday to C$12.87 (low C$12.56) with ~186,762 shares traded, about 48% below the stock's average daily volume and down from a prior close of C$13.89.
• Analysts have grown more positive—Raymond James upgraded OBE to a "moderate buy" and set a C$15.00 target, and the consensus rating is "Moderate Buy" with a mean target of C$12.33 (two Buys, one Hold).
• Recent fundamentals show a C($0.18) EPS for the last quarter on C$114.8M revenue, weak liquidity (current ratio 0.54, quick ratio 0.41) and high debt-to-equity (15.52), while insiders have been selling (e.g., 7,850 shares by Gareth Sykes), owning 1.2% of the company.

Shares of Obsidian Energy Ltd. (TSE:OBE - Get Free Report) dropped 7.3% on Friday . The company traded as low as C$12.56 and last traded at C$12.87. Approximately 186,762 shares were traded during mid-day trading, a decline of 48% from the average daily volume of 360,114 shares. The stock had previously closed at C$13.89.

Wall Street Analysts Forecast Growth

OBE has been the topic of a number of recent analyst reports. Raymond James Financial upgraded Obsidian Energy from a "hold" rating to a "moderate buy" rating and increased their target price for the stock from C$10.00 to C$15.00 in a research note on Monday, March 30th. Royal Bank Of Canada lifted their price target 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. Finally, BMO Capital Markets lifted their price target on shares of 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 research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat, Obsidian Energy presently has a consensus rating of "Moderate Buy" and a consensus target price of C$12.33.

Obsidian Energy Price Performance

The company has a current ratio of 0.54, a quick ratio of 0.41 and a debt-to-equity ratio of 15.52. The firm has a market cap of C$933.17 million, a P/E ratio of 28.18, a PEG ratio of 0.08 and a beta of -0.34. The firm has a 50-day simple moving average of C$11.72 and a 200-day simple moving average of C$9.71.

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

Insider Buying and Selling

In other Obsidian Energy news, insider Gareth Robin Sykes sold 7,850 shares of the business's stock in a transaction dated 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 completion of the transaction, the insider directly owned 132,244 shares in the company, valued at approximately C$1,592,217.76. The trade was a 5.60% decrease in their ownership of the stock. Insiders have sold 14,735 shares of company stock valued at $178,579 in the last ninety days. 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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