Paramount Resources (OTCMKTS:PRMRF) Shares Gap Down - Time to Sell?

Key Points

• Paramount Resources (OTCMKTS:PRMRF) experienced a significant stock price drop, opening at $14.54 after closing at $14.93.
• Analysts have given Paramount Resources a consensus rating of "Moderate Buy", with recent reports from Royal Bank of Canada and Raymond James Financial recommending a hold and moderate buy, respectively.
• The company recently announced a dividend of $0.0367, paid to stockholders, with a yield of 287.0% and a low payout ratio of 6.28%.

Paramount Resources Ltd. (OTCMKTS:PRMRF - Get Free Report)'s share price gapped down prior to trading on Monday . The stock had previously closed at $14.93, but opened at $14.54. Paramount Resources shares last traded at $14.90, with a volume of 835 shares.

Analyst Upgrades and Downgrades

Separately, Royal Bank Of Canada reiterated a "sector perform" rating on shares of Paramount Resources in a research report on Wednesday, May 14th. Two research analysts have rated the stock with a hold rating and one has issued a strong buy rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy".

Paramount Resources Stock Performance

The business's 50 day simple moving average is $15.50 and its 200-day simple moving average is $14.59. The company has a market cap of $2.16 billion, a price-to-earnings ratio of 2.15 and a beta of 1.56.

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

Paramount Resources Cuts Dividend

The company also recently disclosed a dividend, which was paid on Thursday, July 31st. Shareholders of record on Wednesday, July 16th were paid a dividend of $0.0367 per share. This represents a yield of 287.0%. The ex-dividend date of this dividend was Tuesday, July 15th. Paramount Resources's dividend payout ratio is currently 6.28%.

Paramount Resources Company Profile

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.