Paramount Resources (OTCMKTS:PRMRF) Stock Passes Below 50-Day Moving Average - Here's Why

Key Points

• Paramount Resources shares fell below their 50-day moving average of $15.54, with the latest trading price at $14.06.
• The company reported a missed earnings expectation for the last quarter, with earnings per share of $0.02 against the consensus estimate of $0.12.
• A dividend of $0.0362 per share is set to be paid on August 29th, yielding a substantial 297.0%, while the dividend payout ratio stands at 6.13%.

Shares of Paramount Resources Ltd. (OTCMKTS:PRMRF - Get Free Report) passed below its fifty day moving average during trading on Wednesday . The stock has a fifty day moving average of $15.54 and traded as low as $14.06. Paramount Resources shares last traded at $14.06, with a volume of 4,100 shares traded.

Analyst Ratings Changes

Separately, Royal Bank Of Canada reissued a "sector perform" rating on shares of Paramount Resources in a research report on Wednesday, May 14th. One equities research analyst has rated the stock with a Strong Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy".

Paramount Resources Trading Down 0.2%

The stock's fifty day simple moving average is $15.44 and its 200-day simple moving average is $13.95. The company has a market capitalization of $2.09 billion, a price-to-earnings ratio of 2.08 and a beta of 1.56.

Paramount Resources (OTCMKTS:PRMRF - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The company reported $0.02 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.12 by ($0.10). The firm had revenue of $93.43 million during the quarter, compared to analysts' expectations of $131.00 million. Paramount Resources had a return on equity of 6.89% and a net margin of 111.48%. On average, analysts anticipate that Paramount Resources Ltd. will post 1.74 EPS for the current fiscal year.

Paramount Resources Cuts Dividend

The company also recently disclosed a dividend, which will be paid on Friday, August 29th. Stockholders of record on Monday, August 18th will be issued a $0.0362 dividend. This represents a dividend yield of 297.0%. The ex-dividend date of this dividend is Friday, August 15th. Paramount Resources's dividend payout ratio is presently 6.13%.

About Paramount Resources

Paramount Resources Ltd. explores for and develops conventional and unconventional petroleum and natural gas reserves and resources in Canada. The company holds interests in the Karr and Wapiti Montney properties covering an area of 109,000 net acres located south of the city of Grande Prairie, Alberta; Kaybob North Duvernay development and natural gas producing properties covering an area of 124,000 net acres located in west-central Alberta; and Willesden Green Duvernay development in central Alberta and shale gas producing properties in the Horn River Basin in northeast British Columbia covering an area of 249,000 net acres.