Gibson Energy (TSE:GEI) Hits New 12-Month High - Should You Buy?

Key Points

• Gibson Energy shares reached a new 52-week high, trading as high as C$34.15 and last quoted at C$33.99, above the previous close of C$33.57.
• Analyst sentiment remains positive but mixed: MarketBeat reports a “Moderate Buy” consensus from one Strong Buy, five Buy, and three Hold ratings, with an average target price of C$33.10.
• Gibson pays a quarterly dividend of $0.45 per share, equivalent to an annualized $1.80 and a 5.3% yield. However, its 176% payout ratio and high debt-to-equity ratio of 294.95 indicate potential balance-sheet and dividend sustainability risks.

Gibson Energy Inc. (TSE:GEI - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Thursday. The stock traded as high as C$34.15 and last traded at C$33.99, with a volume of 21,063 shares. The stock had previously closed at C$33.57.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on GEI shares. Jefferies Financial Group downgraded shares of Gibson Energy from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, July 22nd. JPMorgan Chase & Co. raised their target price on shares of Gibson Energy from C$29.00 to C$30.00 in a report on Thursday, July 30th. Raymond James Financial upped their price objective on Gibson Energy from C$35.00 to C$36.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 29th. BMO Capital Markets increased their price target on Gibson Energy from C$29.00 to C$32.00 in a research report on Tuesday, July 28th. Finally, Canadian Imperial Bank of Commerce downgraded Gibson Energy from an "outperformer" rating to a "hold" rating and set a C$34.00 target price on the stock. in a research report on Thursday, October 22nd. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of C$33.10.

Gibson Energy Price Performance

The company has a debt-to-equity ratio of 294.95, a quick ratio of 0.87 and a current ratio of 1.07. The stock has a market cap of C$5.88 billion, a PE ratio of 34.09, a PEG ratio of 1.85 and a beta of -0.03. The stock's 50-day moving average is C$31.79 and its two-hundred day moving average is C$29.76.

Gibson Energy (TSE:GEI - Get Free Report) last announced its earnings results on Monday, July 27th. The company reported C$0.48 EPS for the quarter. Gibson Energy had a return on equity of 18.23% and a net margin of 1.32%. The company had revenue of C$4.83 billion during the quarter.

Gibson Energy Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, October 16th. Shareholders of record on Friday, October 16th were given a dividend of $0.45 per share. The ex-dividend date of this dividend was Tuesday, September 29th. This represents a $1.80 annualized dividend and a yield of 5.3%. Gibson Energy's payout ratio is 176.00%.

About Gibson Energy

Gibson is a leading liquids Infrastructure company with its principal businesses consisting of the storage, optimization, processing, and gathering of liquids and refined products, as well as waterborne vessel loading. Headquartered in Calgary, Alberta, the Company's operations are located across North America, with core terminal assets in Hardisty and Edmonton, Alberta, Ingleside and Wink, Texas, and a facility in Moose Jaw, Saskatchewan. Gibson shares trade under the symbol GEI and are listed on the Toronto Stock Exchange.

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