Traders Buy Large Volume of Call Options on Obsidian Energy (NYSEAMERICAN:OBE)

Key Points

• Options activity surged: Traders purchased 3,191 call options on Obsidian Energy, about 43% above the average daily volume of 2,224 contracts.
• Shares declined 1.9% to $12.72 despite trading near the upper end of their 52-week range. Institutional investors own 13.51% of the company, with several funds recently initiating or expanding positions.
• Analysts remain generally positive: Obsidian Energy has a consensus “Moderate Buy” rating and an average price target of $18.00, compared with its current share price.

Obsidian Energy Ltd (NYSEAMERICAN:OBE - Get Free Report) TSE: PWT was the recipient of unusually large options trading on Monday. Traders purchased 3,191 call options on the stock. This is an increase of approximately 43% compared to the average daily volume of 2,224 call options.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Quarry LP purchased a new position in shares of Obsidian Energy during the third quarter valued at approximately $31,000. Qube Research & Technologies Ltd purchased a new stake in Obsidian Energy in the second quarter worth approximately $56,000. Marks Group Wealth Management Inc bought a new stake in Obsidian Energy in the 4th quarter worth approximately $61,000. Caitong International Asset Management Co. Ltd raised its stake in Obsidian Energy by 1,209.9% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 11,632 shares of the oil and gas company's stock valued at $71,000 after buying an additional 10,744 shares during the last quarter. Finally, HRT Financial LP purchased a new stake in Obsidian Energy during the 4th quarter valued at $77,000. 13.51% of the stock is owned by institutional investors.

Obsidian Energy Stock Down 1.9%

Shares of OBE traded down $0.24 on Monday, hitting $12.72. 651,258 shares of the stock traded hands, compared to its average volume of 835,875. Obsidian Energy has a one year low of $5.44 and a one year high of $14.59. The company has a market capitalization of $849.14 million, a PE ratio of 45.44 and a beta of 0.18. The business has a 50 day simple moving average of $10.53 and a 200 day simple moving average of $10.35. The company has a debt-to-equity ratio of 0.25, a quick ratio of 0.78 and a current ratio of 0.78.

Wall Street Analysts Forecast Growth

Separately, BMO Capital Markets reissued an "outperform" rating on shares of Obsidian Energy 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 stock. According to MarketBeat, Obsidian Energy currently has a consensus rating of "Moderate Buy" and an average price target of $18.00.

Obsidian Energy Company Profile

Obsidian Energy Ltd. is a Canadian oil and natural gas exploration and production company. Its activities include the acquisition, development and operation of petroleum and natural gas properties, with a focus on generating production from conventional oil and liquids-rich natural gas assets.

The company's operations are concentrated in Alberta, Canada, including the Peace River, Cardium and Pembina areas. Its products include crude oil, natural gas liquids and natural gas, which are sold into Canadian and North American energy markets.

Obsidian Energy was formerly known as Penn West Petroleum Ltd.

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