Pason Systems (TSE:PSI) Stock Price Crosses Above Fifty Day Moving Average - Time to Sell?

Key Points

• Pason Systems shares rose 3.7% and crossed above their 50-day moving average of C$14.27, trading near C$14.33 with a market capitalization of approximately C$1.11 billion.
• Analyst sentiment is cautious: one analyst rates the stock Buy and three rate it Hold, producing an average “Hold” rating and a consensus price target of C$16.33. TD and TD Securities recently downgraded the shares to Hold, while RBC and National Bank raised their targets to C$17.00.
• The company pays a quarterly dividend of C$0.13, equivalent to an annualized C$0.52 and a 3.6% yield, although its payout ratio is high at 83.87%. Recent insider activity was mixed, with 100,191 shares sold by insiders over 90 days and a director purchasing 3,000 shares.

Pason Systems Inc. (TSE:PSI - Get Free Report)'s share price passed above its 50 day moving average during trading on Monday. The stock has a 50 day moving average of C$14.27 and traded as high as C$14.47. Pason Systems shares last traded at C$14.33, with a volume of 151,917 shares trading hands.

Wall Street Analyst Weigh In

A number of research analysts recently commented on PSI shares. TD lowered shares of Pason Systems from a "buy" rating to a "hold" rating and set a C$15.00 price objective on the stock. in a research note on Tuesday, October 20th. Royal Bank Of Canada upped their target price on Pason Systems from C$16.00 to C$17.00 and gave the stock an "outperform" rating in a research report on Wednesday, August 12th. National Bank Financial increased their price target on Pason Systems from C$15.50 to C$17.00 and gave the company a "sector perform" rating in a research note on Monday. Finally, TD Securities lowered Pason Systems from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, October 20th. One analyst has rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Hold" and an average target price of C$16.33.

Pason Systems Trading Up 3.7%

The company has a quick ratio of 3.54, a current ratio of 2.29 and a debt-to-equity ratio of 5.51. The firm's 50-day simple moving average is C$14.27 and its 200 day simple moving average is C$13.35. The stock has a market capitalization of C$1.11 billion, a P/E ratio of 23.11, a PEG ratio of 10.78 and a beta of 0.61.

Pason Systems (TSE:PSI - Get Free Report) last posted its quarterly earnings data on Tuesday, August 11th. The company reported C$0.18 earnings per share for the quarter. The company had revenue of C$100.78 million during the quarter. Pason Systems had a net margin of 11.53% and a return on equity of 9.71%. Equities research analysts anticipate that Pason Systems Inc. will post 1.23 EPS for the current fiscal year.

Pason Systems Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 29th. Investors of record on Tuesday, September 29th were paid a dividend of $0.13 per share. The ex-dividend date of this dividend was Tuesday, September 15th. This represents a $0.52 annualized dividend and a yield of 3.6%. Pason Systems's dividend payout ratio is currently 83.87%.

Insider Activity

In other Pason Systems news, insider Jonathan Faber sold 45,000 shares of Pason Systems stock in a transaction that occurred on Thursday, August 13th. The shares were sold at an average price of C$14.55, for a total value of C$654,750.00. Following the transaction, the insider owned 42,000 shares in the company, valued at approximately C$611,100. The trade was a 51.72% decrease in their ownership of the stock. Also, Director Kenneth Brandon Mullen purchased 3,000 shares of the company's stock in a transaction on Wednesday, September 30th. The stock was bought at an average cost of C$13.96 per share, for a total transaction of C$41,880.00. Following the acquisition, the director directly owned 8,000 shares of the company's stock, valued at C$111,680. This represents a 60.00% increase in their position. Insiders sold a total of 100,191 shares of company stock valued at $1,455,400 in the last ninety days. 0.13% of the stock is owned by company insiders.

About Pason Systems

Pason Systems Inc is an oilfield specialist with fully integrated drilling data solutions. A host of products allow customers to collect, manage, report, and analyze drilling data for performance optimization and cost control. The electronic drilling recorder is the company's primary product, and provides a complete system of drilling data acquisition, data networking, drilling management tools, and reports at both the wellsite and customer office. Other product offerings include wellbore detection solutions, wellsite communications and bandwidth, wellbore gas analyzers, and software for data management.

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