Surge Energy (TSE:SGY) Share Price Crosses Above 50-Day Moving Average - Should You Sell?

Key Points

• Surge Energy shares crossed above their 50-day moving average, reaching C$11.07 before closing at C$10.94, compared with a 50-day average of C$9.89.
• Analysts remain bullish: five analysts rate the stock Buy, with a consensus price target of C$13.25 versus the recent C$10.94 price.
• The company reported C$0.68 in quarterly EPS and C$191.22 million in revenue, while paying a monthly dividend yielding about 4.7%; however, insiders sold 61,479 shares over the past 90 days.

Surge Energy Inc. (TSE:SGY - Get Free Report) crossed above its 50-day moving average during trading on Tuesday . The stock has a 50-day moving average of C$9.89 and traded as high as C$11.07. Surge Energy shares last traded at C$10.94, with a volume of 518,107 shares trading hands.

Wall Street Analysts Forecast Growth

Several brokerages have commented on SGY. National Bank Financial raised their price objective on shares of Surge Energy from C$12.75 to C$13.50 and gave the stock an "outperform" rating in a report on Tuesday, June 2nd. Raymond James Financial upped their target price on Surge Energy from C$12.00 to C$13.00 and gave the stock an "outperform" rating in a report on Tuesday, June 2nd. Canaccord Genuity Group increased their target price on Surge Energy from C$12.00 to C$13.00 and gave the stock a "buy" rating in a research report on Tuesday, June 2nd. Acumen Capital raised their target price on 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. Finally, ATB Cormark Capital Markets lifted their price target 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. Five analysts have rated the stock with a Buy rating, According to MarketBeat, the stock currently has an average rating of "Buy" and a consensus target price of C$13.25.

Surge Energy Stock Down 1.2%

The company has a debt-to-equity ratio of 31.11, a quick ratio of 0.40 and a current ratio of 1.04. The stock's 50-day moving average price is C$9.89 and its two-hundred day moving average price is C$9.33. The stock has a market capitalization of C$1.09 billion, a PE ratio of 24.86, a P/E/G ratio of 0.59 and a beta of -0.42.

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

Surge Energy Announces Dividend

The firm also recently announced a monthly dividend, which was paid on Monday, August 17th. Stockholders of record on Monday, August 17th were issued a dividend of $0.0433 per share. This represents a c) annualized dividend and a dividend yield of 4.7%. The ex-dividend date was Friday, July 31st. Surge Energy's dividend payout ratio (DPR) is presently 118.18%.

Insider Buying and Selling

In related news, insider Margaret Ann Elekes sold 14,000 shares of the company's stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of C$10.65, for a total value of C$149,100.00. Following the sale, the insider owned 100,921 shares in the company, valued at C$1,074,808.65. This represents a 12.18% decrease in their position. Also, insider Jared Ducs sold 27,601 shares of the firm's stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of C$10.57, for a total value of C$291,742.57. Following the transaction, the insider directly owned 118,847 shares of the company's stock, valued at approximately C$1,256,212.79. This trade represents a 18.85% decrease in their position. In the last 90 days, insiders sold 61,479 shares of company stock valued at $649,563. 1.97% of the stock is 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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