PrairieSky Royalty (TSE:PSK) Reaches New 12-Month High - Should You Buy?

Key Points

• PrairieSky Royalty shares reached a new 52-week high of C$37.37, rising 2.6% and bringing the company’s market capitalization to approximately C$8.75 billion.
• Analysts remain generally positive, with a consensus “Moderate Buy” rating; however, the C$35.92 average price target is below the current share price despite recent target increases from National Bank Financial and RBC.
• The company reported quarterly EPS of C$0.36 on C$165 million in revenue and pays an annualized C$1.06 dividend yielding 2.8%. Its dividend payout ratio is high at 100.96%.

PrairieSky Royalty Ltd. (TSE:PSK - Get Free Report) shares hit a new 52-week high during trading on Tuesday. The company traded as high as C$37.37 and last traded at C$37.37, with a volume of 13,522 shares traded. The stock had previously closed at C$36.70.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on PSK. National Bank Financial raised their price objective on PrairieSky Royalty from C$42.00 to C$43.00 and gave the company an "outperform" rating in a research report on Tuesday, October 20th. Royal Bank Of Canada increased their target price on PrairieSky Royalty from C$38.00 to C$39.00 and gave the stock an "outperform" rating in a research note on Wednesday, October 21st. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of C$35.92.

PrairieSky Royalty Trading Up 2.6%

The stock has a market cap of C$8.75 billion, a PE ratio of 36.21, a PEG ratio of 0.47 and a beta of 0.82. The company has a quick ratio of 0.65, a current ratio of 0.90 and a debt-to-equity ratio of 6.88. The stock's fifty day moving average price is C$35.28 and its 200 day moving average price is C$32.85.

PrairieSky Royalty (TSE:PSK - Get Free Report) last announced its quarterly earnings data on Monday, October 26th. The company reported C$0.36 earnings per share for the quarter. The company had revenue of C$165.00 million during the quarter. PrairieSky Royalty had a net margin of 44.86% and a return on equity of 9.48%.

PrairieSky Royalty Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 15th. Shareholders of record on Thursday, October 15th were issued a $0.2650 dividend. The ex-dividend date of this dividend was Tuesday, September 29th. This represents a $1.06 dividend on an annualized basis and a dividend yield of 2.8%. PrairieSky Royalty's dividend payout ratio (DPR) is presently 100.96%.

Insiders Place Their Bets

In other PrairieSky Royalty news, insider Pamela Pearl Kazeil purchased 2,500 shares of the firm's stock in a transaction dated Wednesday, August 5th. The stock was purchased at an average price of C$33.42 per share, for a total transaction of C$83,550.00. Following the completion of the purchase, the insider directly owned 3,220 shares of the company's stock, valued at C$107,612.40. This trade represents a 347.22% increase in their ownership of the stock. Also, insider Andrew Phillips purchased 3,500 shares of the firm's stock in a transaction dated Wednesday, August 5th. The stock was acquired at an average price of C$33.26 per share, with a total value of C$116,410.00. Following the purchase, the insider directly owned 93,500 shares of the company's stock, valued at approximately C$3,109,810. The trade was a 3.89% increase in their ownership of the stock. 0.54% of the stock is currently owned by company insiders.

About PrairieSky Royalty

PrairieSky is a royalty-focused company, generating royalty revenues as oil and natural gas are produced from its properties. PrairieSky has a diverse portfolio of properties that have a long history of generating free cash flow and that represent the largest and most concentrated independently-owned fee simple mineral title position in Canada.

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