Surge Energy (TSE:SGY) Reaches New 1-Year High - Should You Buy?

Key Points

• Surge Energy reached a new 52-week high, trading as high as C$11.47, up from its previous close of C$11.16.
• All five covering analysts rate the stock Buy or Outperform, with the average price target raised to C$13.25, implying further upside.
• The company reported C$0.68 in quarterly EPS and C$191.22 million in revenue, while its monthly dividend yields approximately 4.5%; however, its 118.18% payout ratio may warrant caution.

Surge Energy Inc. (TSE:SGY - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Tuesday . The company traded as high as C$11.47 and last traded at C$11.46, with a volume of 91273 shares trading hands. The stock had previously closed at C$11.16.

Wall Street Analyst Weigh In

SGY has been the topic of a number of research analyst reports. Raymond James Financial raised their target price on Surge Energy from C$12.00 to C$13.00 and gave the company an "outperform" rating in a report on Tuesday, June 2nd. ATB Cormark Capital Markets lifted their target price on Surge Energy from C$12.00 to C$13.00 and gave the company an "outperform" rating in a research report on Tuesday, June 2nd. National Bank Financial boosted their target price on Surge Energy from C$12.75 to C$13.50 and gave the stock an "outperform" rating in a research note on Tuesday, June 2nd. Canaccord Genuity Group increased their target price on shares of Surge Energy from C$12.00 to C$13.00 and gave the stock a "buy" rating in a report on Tuesday, June 2nd. Finally, Acumen Capital raised their price target on shares of Surge Energy from C$13.25 to C$13.75 and gave the company a "buy" rating in a research note on Tuesday, June 2nd. Five equities research analysts have rated the stock with a Buy rating, According to data from MarketBeat, Surge Energy presently has an average rating of "Buy" and an average target price of C$13.25.

Surge Energy Price Performance

The business has a 50-day moving average of C$10.20 and a two-hundred day moving average of C$9.56. The company has a current ratio of 1.04, a quick ratio of 0.40 and a debt-to-equity ratio of 31.11. The firm has a market cap of C$1.14 billion, a P/E ratio of 26.02, a price-to-earnings-growth ratio of 0.59 and a beta of -0.43.

Surge Energy (TSE:SGY - Get Free Report) last posted its earnings results on Wednesday, July 29th. The company reported C$0.68 EPS for the quarter. Surge Energy had a return on equity of 6.18% and a net margin of 8.01%.The firm had revenue of C$191.22 million during the quarter.

Surge Energy Announces Dividend

The firm also recently disclosed a monthly dividend, which was paid on Monday, August 17th. Investors of record on Monday, August 17th were issued a $0.0433 dividend. This represents a c) dividend on an annualized basis and a yield of 4.5%. The ex-dividend date was Friday, July 31st. Surge Energy's dividend payout ratio (DPR) is 118.18%.

Insider Transactions at Surge Energy

In related news, Director Michelle Gramatke sold 10,000 shares of Surge Energy stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of C$10.51, for a total transaction of C$105,100.00. Following the sale, the director directly owned 26,180 shares in the company, valued at C$275,151.80. This trade represents a 27.64% decrease in their position. 1.97% of the stock is currently owned by company insiders.

About Surge Energy

Surge Energy Inc is engaged in the exploration, development, and production of oil and gas from properties in western Canada. The company generates its revenue from the sale of petroleum and natural gas products such as Oil, Natural gas liquids and Natural gas, of which a majority of the revenue is derived from the sale of oil.

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