PrairieSky Royalty (TSE:PSK) Share Price Crosses Below Fifty Day Moving Average - Time to Sell?

Key Points

• PrairieSky Royalty shares slipped below their 50-day moving average, trading as low as C$31.94 before last changing hands at C$32.81. The move comes after a recent period of technical weakness in the stock.
• Analyst sentiment is mixed but slightly constructive, with the stock carrying a consensus rating of “Moderate Buy” and an average target price of C$32.25. Recent calls included a downgrade from Raymond James to “hold” and an upgrade from Roth Capital to “strong-buy.”
• The company declared a quarterly dividend of C$0.265 per share, payable July 15, which annualizes to C$1.06 and a 3.2% yield. An insider also bought 7,500 shares in June, signaling some confidence from within the company.

PrairieSky Royalty Ltd. (TSE:PSK - Get Free Report)'s share price passed below its fifty day moving average during trading on Wednesday . The stock has a fifty day moving average of C$33.38 and traded as low as C$31.94. PrairieSky Royalty shares last traded at C$32.81, with a volume of 426,641 shares changing hands.

Analyst Upgrades and Downgrades

PSK has been the subject of a number of recent research reports. Raymond James Financial downgraded shares of PrairieSky Royalty from a "moderate buy" rating to a "hold" rating and increased their price objective for the stock from C$35.00 to C$35.50 in a research note on Monday, March 30th. Roth Capital raised shares of PrairieSky Royalty to a "strong-buy" rating in a research report on Thursday, April 30th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, PrairieSky Royalty presently has a consensus rating of "Moderate Buy" and an average target price of C$32.25.

PrairieSky Royalty Price Performance

The company has a quick ratio of 0.65, a current ratio of 0.83 and a debt-to-equity ratio of 9.36. The stock has a market capitalization of C$7.63 billion, a price-to-earnings ratio of 38.15, a P/E/G ratio of 0.47 and a beta of 0.75. The business's 50 day simple moving average is C$33.38 and its 200-day simple moving average is C$31.19.

PrairieSky Royalty Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Wednesday, July 15th will be paid a dividend of $0.265 per share. The ex-dividend date is Tuesday, June 30th. This represents a $1.06 annualized dividend and a yield of 3.2%. PrairieSky Royalty's dividend payout ratio is presently 121.51%.

Insider Transactions at PrairieSky Royalty

In other PrairieSky Royalty news, insider Ian Charles Dundas bought 7,500 shares of the stock in a transaction on Friday, June 19th. The stock was purchased at an average price of C$31.89 per share, with a total value of C$239,175.00. Following the completion of the purchase, the insider owned 27,500 shares in the company, valued at C$876,975. The trade was a 37.50% increase in their ownership of the stock. 0.54% of the stock is currently owned by corporate insiders.

PrairieSky Royalty Company Profile

PrairieSky Royalty Ltd is the owner of subsurface mineral rights on a variety of royalty properties in western Canada. The company encourages third parties to develop these properties, while also seeking additional petroleum and natural gas royalty assets. Once PrairieSky has given a third party the right to explore, develop, or produce on its properties, the company collects royalty revenue from the development of petroleum and natural gas. Property arrangements can be contracted as lease issuances, farmouts, drilling commitments, or seismic option agreements.

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