InPlay Oil (TSE:IPO) Shares Climb 1% - Should You Buy?

Key Points

• InPlay Oil shares rose 1% to C$17.01, with trading volume 52% below the average daily level. The stock remains near its 50-day and 200-day moving averages.
• Analyst sentiment is positive, with two Buy ratings and an average price target of C$18.33, although National Bank Financial recently lowered its target from C$27.50 to C$22.50.
• The company announced a monthly dividend of $0.09 per share, equivalent to a 6.3% annualized yield, but its negative earnings and payout ratio of -240% highlight potential sustainability concerns. Insiders have also sold 51,173 shares over the past 90 days.

InPlay Oil Corp. (TSE:IPO - Get Free Report)'s share price was up 1% during mid-day trading on Monday. The stock traded as high as C$17.16 and last traded at C$17.01. Approximately 53,030 shares traded hands during trading, a decline of 52% from the average daily volume of 109,947 shares. The stock had previously closed at C$16.84.

Wall Street Analyst Weigh In

Separately, National Bank Financial reduced their price objective on InPlay Oil from C$27.50 to C$22.50 and set an "outperform" rating for the company in a research note on Wednesday, July 8th. Two equities research analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the company has an average rating of "Buy" and an average target price of C$18.33.

InPlay Oil Stock Up 1.0%

The company has a market cap of C$470.33 million, a PE ratio of -37.80 and a beta of 0.56. The company has a debt-to-equity ratio of 76.05, a current ratio of 0.99 and a quick ratio of 0.51. The business's fifty day simple moving average is C$16.76 and its two-hundred day simple moving average is C$16.48.

InPlay Oil (TSE:IPO - Get Free Report) last posted its quarterly earnings data on Thursday, August 13th. The company reported C$0.78 EPS for the quarter. InPlay Oil had a negative return on equity of 3.81% and a negative net margin of 4.07%.The business had revenue of C$248.23 million during the quarter. On average, analysts predict that InPlay Oil Corp. will post 0.3500838 earnings per share for the current year.

InPlay Oil Dividend Announcement

The business also recently disclosed a monthly dividend, which will be paid on Friday, October 30th. Shareholders of record on Friday, October 30th will be given a dividend of $0.09 per share. The ex-dividend date is Thursday, October 15th. This represents a $1.08 dividend on an annualized basis and a yield of 6.3%. InPlay Oil's dividend payout ratio is currently -240.00%.

Insider Activity

In other news, insider Kevin Yakiwchuk sold 22,634 shares of the business's stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of C$18.06, for a total transaction of C$408,770.04. Following the completion of the sale, the insider owned 140,832 shares of the company's stock, valued at C$2,543,425.92. The trade was a 13.85% decrease in their ownership of the stock. Also, insider Darren W. Dittmer sold 11,317 shares of InPlay Oil stock in a transaction dated Wednesday, September 9th. The stock was sold at an average price of C$17.71, for a total value of C$200,424.07. Following the completion of the sale, the insider owned 194,798 shares in the company, valued at approximately C$3,449,872.58. The trade was a 5.49% decrease in their ownership of the stock. Insiders have sold a total of 51,173 shares of company stock worth $919,362 over the last 90 days. 25.31% of the stock is currently owned by company insiders.

InPlay Oil Company Profile

InPlay is a junior oil and gas exploration and production company with operations in Alberta focused on light oil production. The company operates long-lived, low-decline properties with drilling development and enhanced oil recovery potential as well as undeveloped lands with exploration possibilities.

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