Paramount Resources (TSE:POU) Shares Cross Above 200 Day Moving Average - Here's Why

Key Points

• Paramount Resources shares moved above their 200-day moving average, with the stock trading as high as C$29.84 and last changing hands at C$29.66. The move suggests improving technical momentum for the Canadian energy producer.
• Analysts remain cautiously positive, with the stock carrying a consensus rating of “Moderate Buy” and an average price target of C$32.94. Recent target hikes came from National Bank Financial, Raymond James, and RBC, while Scotiabank upgraded the shares to hold.
• The company also announced a monthly dividend of C$0.05 per share, payable July 31, implying a 2.0% annualized yield. However, its payout ratio is high at 150%, which may be a point of concern for investors.

Paramount Resources Ltd. (TSE:POU - Get Free Report) shares crossed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of C$27.97 and traded as high as C$29.84. Paramount Resources shares last traded at C$29.66, with a volume of 151,482 shares changing hands.

Wall Street Analysts Forecast Growth

POU has been the topic of a number of recent analyst reports. National Bank Financial raised their price target on shares of Paramount Resources from C$36.00 to C$38.00 and gave the stock a "sector perform" rating in a report on Wednesday, May 13th. Scotiabank raised shares of Paramount Resources to a "hold" rating in a research note on Friday, June 26th. Raymond James Financial increased their target price on shares of Paramount Resources from C$34.00 to C$36.00 and gave the stock an "outperform" rating in a report on Wednesday, May 13th. Finally, Royal Bank Of Canada raised their target price on Paramount Resources from C$32.00 to C$35.00 and gave the stock a "sector perform" rating in a research note on Wednesday, May 13th. Four investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of C$32.94.

Paramount Resources Price Performance

The business has a 50 day moving average of C$29.53 and a 200 day moving average of C$27.97. The company has a market cap of C$4.33 billion, a PE ratio of 74.15, a price-to-earnings-growth ratio of 0.14 and a beta of -0.24. The company has a debt-to-equity ratio of 0.89, a current ratio of 2.57 and a quick ratio of 0.68.

Paramount Resources (TSE:POU - Get Free Report) last issued its quarterly earnings data on Tuesday, May 12th. The company reported C$0.36 earnings per share (EPS) for the quarter. Paramount Resources had a net margin of 5.90% and a return on equity of 1.96%. The business had revenue of C$276.20 million for the quarter. As a group, research analysts predict that Paramount Resources Ltd. will post 1.4075758 EPS for the current year.

Paramount Resources Dividend Announcement

The business also recently announced a monthly dividend, which will be paid on Friday, July 31st. Stockholders of record on Friday, July 31st will be paid a dividend of $0.05 per share. The ex-dividend date of this dividend is Friday, July 17th. This represents a c) dividend on an annualized basis and a dividend yield of 2.0%. Paramount Resources's payout ratio is presently 150.00%.

Insider Activity at Paramount Resources

In other Paramount Resources news, Director Dirk Jungé sold 8,850 shares of the firm's stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of C$30.97, for a total value of C$274,084.50. Following the completion of the sale, the director directly owned 57,915 shares in the company, valued at C$1,793,627.55. This trade represents a 13.26% decrease in their ownership of the stock. Also, insider David Blake Reid sold 25,000 shares of Paramount Resources stock in a transaction that occurred on Wednesday, May 13th. The shares were sold at an average price of C$30.90, for a total value of C$772,500.00. Following the sale, the insider directly owned 172,313 shares in the company, valued at approximately C$5,324,471.70. The trade was a 12.67% decrease in their ownership of the stock. Over the last three months, insiders have bought 10,148 shares of company stock valued at $308,401 and have sold 44,800 shares valued at $1,388,875. Corporate insiders own 45.36% of the company's stock.

Paramount Resources Company Profile

Paramount is an independent, publicly traded Canadian energy company that explores for and develops both conventional and unconventional petroleum and natural gas, including longer-term strategic exploration and pre-development plays. The Company's principal properties are located in Alberta and British Columbia. Paramount's class A common shares are listed on the Toronto Stock Exchange under the symbol "POU".

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