Meren Energy (TSE:MER) Shares Climb 1.4% - Still a Buy?

Key Points

• Meren Energy shares rose 1.4% to C$2.14, although trading volume was 58% below the stock’s average daily volume.
• Scotiabank downgraded the company from “strong buy” to “hold.” Analysts have a consensus “Hold” rating and an average price target of C$2.50.
• Meren reported quarterly earnings of C$0.07 per share on C$279.47 million in revenue and pays an annualized dividend of about C$0.15, representing a 6.9% yield.

Meren Energy Inc. (TSE:MER - Get Free Report)'s share price was up 1.4% during trading on Friday. The stock traded as high as C$2.16 and last traded at C$2.14. 356,821 shares were traded during trading, a decline of 58% from the average daily volume of 839,998 shares. The stock had previously closed at C$2.11.

Analyst Upgrades and Downgrades

Separately, Scotiabank lowered shares of Meren Energy from a "strong-buy" rating to a "hold" rating and set a C$2.50 target price for the company. in a research report on Friday, July 17th. Two equities research analysts have rated the stock with a Hold rating. According to data from MarketBeat, Meren Energy currently has a consensus rating of "Hold" and an average target price of C$2.50.

Meren Energy Stock Performance

The firm has a market cap of C$1.45 billion, a PE ratio of -13.38 and a beta of 0.19. The company's 50-day simple moving average is C$2.18 and its two-hundred day simple moving average is C$2.19.

Meren Energy (TSE:MER - Get Free Report) last posted its earnings results on Tuesday, August 11th. The company reported C$0.07 earnings per share for the quarter. The firm had revenue of C$279.47 million for the quarter.

Meren Energy Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, September 4th. Shareholders of record on Friday, September 4th were issued a $0.0371 dividend. The ex-dividend date was Thursday, August 20th. This represents a $0.15 annualized dividend and a yield of 6.9%. Meren Energy's dividend payout ratio (DPR) is -92.75%.

Meren Energy Company Profile

Meren is a full-cycle Independent upstream oil and gas company with interests offshore Nigeria, Namibia, South Africa and Equatorial Guinea. Its main assets are producing and development assets in deepwater Nigeria. The Company holds a leading position in the Orange Basin including its effective interest in the Venus light oil project, offshore Namibia, and its direct interest in Block 3B/4B, offshore South Africa.

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