Tourmaline Oil (TSE:TOU) Stock Price Breaks Below 200 Day Moving Average - Time to Sell?

Key Points

• Tourmaline Oil shares fell below their 200-day moving average of C$63.17, trading as low as C$62.65 before last changing hands at C$63.00.
• Analyst views are mixed, but the overall consensus is Hold, with an average price target of C$70.80; targets cited range from C$66 to C$75.
• The company reported quarterly earnings of C$1.64 per share and C$1.47 billion in revenue. Insiders have also purchased 25,000 shares over the past 90 days.

Tourmaline Oil Corp. (TSE:TOU - Get Free Report)'s share price crossed below its two hundred day moving average during trading on Wednesday. The stock has a two hundred day moving average of C$63.17 and traded as low as C$62.65. Tourmaline Oil shares last traded at C$63.00, with a volume of 2,558,381 shares changing hands.

Analysts Set New Price Targets

TOU has been the topic of a number of research analyst reports. The Goldman Sachs Group downgraded Tourmaline Oil from a "strong-buy" rating to a "strong sell" rating in a research report on Thursday, October 1st. Jefferies Financial Group raised their price target on Tourmaline Oil from C$72.00 to C$74.00 in a report on Friday, July 24th. ATB Cormark Capital Markets lifted their price objective on Tourmaline Oil from C$70.00 to C$75.00 and gave the stock an "outperform" rating in a research note on Thursday, October 22nd. Desjardins set a C$68.00 price objective on Tourmaline Oil and gave the stock a "hold" rating in a research note on Friday, July 17th. Finally, TD upped their price objective on Tourmaline Oil from C$65.00 to C$66.00 and gave the stock a "hold" rating in a report on Wednesday, July 22nd. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of C$70.80.

Tourmaline Oil Price Performance

The company has a quick ratio of 0.47, a current ratio of 0.72 and a debt-to-equity ratio of 8.24. The company has a market capitalization of C$24.48 billion, a PE ratio of 68.48, a price-to-earnings-growth ratio of 1.72 and a beta of -0.09. The firm's 50 day simple moving average is C$63.53 and its 200 day simple moving average is C$63.17.

Tourmaline Oil (TSE:TOU - Get Free Report) last announced its earnings results on Wednesday, November 4th. The company reported C$1.64 earnings per share for the quarter. The business had revenue of C$1.47 billion for the quarter. Tourmaline Oil had a net margin of 6.50% and a return on equity of 2.37%. As a group, research analysts anticipate that Tourmaline Oil Corp. will post 5.68 EPS for the current fiscal year.

Insider Buying and Selling

In other news, insider Mike Rose acquired 5,000 shares of Tourmaline Oil stock in a transaction that occurred on Tuesday, October 6th. The shares were bought at an average cost of C$62.06 per share, with a total value of C$310,300.00. Following the transaction, the insider directly owned 8,162,678 shares of the company's stock, valued at C$506,575,796.68. This trade represents a 0.06% increase in their position. In the last 90 days, insiders have bought 25,000 shares of company stock worth $1,534,050. Corporate insiders own 5.13% of the company's stock.

About Tourmaline Oil

Tourmaline is Canada's largest and most active natural gas producer dedicated to producing the lowest-development-cost natural gas in North America. We are an investment grade exploration and production company providing strong and predictable operating and financial performance through the development of our three core areas in the Western Canadian Sedimentary Basin. With our existing large reserve base, decades-long drilling inventory, relentless focus on execution, cost management, safety and environmental performance improvement, we are excited to provide shareholders an excellent return on capital and an attractive source of income through our base dividend and surplus free cash flow distribution strategies.

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