Strathcona Resources (TSE:SCR) Stock Crosses Below 200-Day Moving Average - What's Next?

Key Points

• Strathcona Resources shares fell 10.3%, trading as low as C$38.43 and closing near C$38.44—below the C$39.18 200-day moving average.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and a C$45.00 price target, despite mixed target revisions from National Bank Financial and ATB Cormark.
• The company reported C$1.76 in quarterly EPS on C$1.40 billion in revenue and maintains a quarterly dividend of C$0.30, equivalent to a 3.1% yield and a 30.46% payout ratio.

Strathcona Resources Ltd. (TSE:SCR - Get Free Report) passed below its 200-day moving average during trading on Monday. The stock has a 200-day moving average of C$39.18 and traded as low as C$38.43. Strathcona Resources shares last traded at C$38.44, with a volume of 1,047,787 shares.

Analyst Ratings Changes

A number of research analysts have commented on the company. National Bank Financial lowered their price target on Strathcona Resources from C$63.00 to C$62.00 and set an "outperform" rating for the company in a research report on Tuesday, October 20th. ATB Cormark Capital Markets lifted their price objective on Strathcona Resources from C$46.00 to C$50.00 and gave the stock a "sector perform" rating in a research report on Thursday, October 22nd. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of C$45.00.

Strathcona Resources Trading Down 10.3%

The company has a debt-to-equity ratio of 43.82, a current ratio of 0.43 and a quick ratio of 11.09. The stock's 50 day moving average is C$42.03 and its 200-day moving average is C$39.18. The company has a market capitalization of C$8.24 billion, a P/E ratio of 9.76, a P/E/G ratio of -2.02 and a beta of -0.16.

Strathcona Resources (TSE:SCR - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The company reported C$1.76 earnings per share (EPS) for the quarter. Strathcona Resources had a net margin of 19.41% and a return on equity of 17.02%. The company had revenue of C$1.40 billion during the quarter. As a group, equities research analysts anticipate that Strathcona Resources Ltd. will post 2.85 earnings per share for the current year.

Strathcona Resources Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, September 21st. Shareholders of record on Monday, September 21st were issued a $0.30 dividend. This represents a $1.20 annualized dividend and a yield of 3.1%. The ex-dividend date of this dividend was Friday, September 11th. Strathcona Resources's payout ratio 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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