Strathcona Resources (TSE:SCR) Shares Cross Below Fifty Day Moving Average - Here's Why

Key Points

• Strathcona Resources shares fell below their 50-day moving average of C$42.27, reaching C$42.01 before last trading at C$42.91.
• Analyst sentiment remains positive, with a consensus “Buy” rating from MarketBeat and an average price target of C$43.00; National Bank lowered its target to C$66, while Jefferies raised its target to C$56 and upgraded the stock to “Buy.”
• The company announced a quarterly dividend of C$0.30 per share, equivalent to C$1.20 annually and a 2.8% yield, with a payout ratio of 30.46%.

Strathcona Resources Ltd. (TSE:SCR - Get Free Report)'s share price passed below its 50-day moving average during trading on Thursday . The stock has a 50-day moving average of C$42.27 and traded as low as C$42.01. Strathcona Resources shares last traded at C$42.91, with a volume of 249,652 shares.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on SCR shares. National Bank Financial cut their price objective on Strathcona Resources from C$68.00 to C$66.00 and set an "outperform" rating for the company in a research report on Wednesday, July 8th. Jefferies Financial Group upgraded Strathcona Resources from a "hold" rating to a "buy" rating and increased their target price for the stock from C$45.00 to C$56.00 in a report on Thursday, June 4th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat, Strathcona Resources currently has a consensus rating of "Buy" and an average target price of C$43.00.

Strathcona Resources Trading Up 0.1%

The company has a current ratio of 0.43, a quick ratio of 11.09 and a debt-to-equity ratio of 43.82. The company has a market capitalization of C$9.19 billion, a P/E ratio of 10.89, a PEG ratio of -2.02 and a beta of 2.61. The business has a 50 day moving average price of C$42.27 and a 200 day moving average price of C$41.36.

Strathcona Resources (TSE:SCR - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported C$1.76 earnings per share for the quarter. The business had revenue of C$2.73 billion for the quarter. Strathcona Resources had a net margin of 19.41% and a return on equity of 17.02%. Analysts anticipate that Strathcona Resources Ltd. will post 2.8494405 EPS for the current year.

Strathcona Resources Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, September 21st. Shareholders of record on Monday, September 21st will be issued a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a yield of 2.8%. The ex-dividend date is Friday, September 11th. Strathcona Resources's dividend payout ratio (DPR) is 30.46%.

About Strathcona Resources

Strathcona is one of North America's fastest growing pure play heavy oil producers with operations focused on thermal oil and enhanced oil recovery. Strathcona is built on an innovative approach to growth achieved through the consolidation and development of long-life assets. The Company has three operations, including Cold Lake, Lloydminster Thermal and Lloydminster Conventional. Strathcona is a major producer in the Cold Lake region of Alberta. Our operations include thermal oil producing assets at Lindbergh, Orion and Tucker, with production from best-in-class steam-assisted gravity drainage (SAGD) oil assets.

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