Serica Energy (LON:SQZ) Shares Down 13.9% - Here's Why

Key Points

• Serica Energy’s stock price dropped 13.9% to close at GBX 153.07 following a significant increase in trading volume.
• Despite the sharp decline in stock price, several analyst firms, including Canaccord Genuity and Jefferies Financial Group, reaffirmed a "buy" rating with a target price of GBX 190.
• Insider Martin Copeland purchased 45,000 shares at GBX 161, indicating a strong level of confidence among company insiders, who collectively own 63.80% of the stock.

Serica Energy plc (LON:SQZ - Get Free Report) was down 13.9% during mid-day trading on Wednesday . The stock traded as low as GBX 146 ($1.98) and last traded at GBX 153.07 ($2.08). Approximately 26,836,516 shares were traded during trading, an increase of 1,158% from the average daily volume of 2,133,212 shares. The stock had previously closed at GBX 177.80 ($2.41).

Analysts Set New Price Targets

A number of brokerages have weighed in on SQZ. JPMorgan Chase & Co. restated a "buy" rating and issued a GBX 215 target price on shares of Serica Energy in a research report on Wednesday, August 13th. Jefferies Financial Group reissued a "buy" rating and set a GBX 190 target price on shares of Serica Energy in a research note on Tuesday, August 5th. Canaccord Genuity Group reissued a "buy" rating and set a GBX 190 target price on shares of Serica Energy in a research note on Thursday, July 31st. Finally, Shore Capital reaffirmed a "buy" rating on shares of Serica Energy in a research note on Wednesday, September 10th. Five analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the company has an average rating of "Buy" and a consensus price target of GBX 203.

Serica Energy Trading Down 0.2%

The company has a debt-to-equity ratio of 26.31, a current ratio of 1.69 and a quick ratio of 1.22. The stock has a market capitalization of £624.06 million, a PE ratio of -1,997.50, a PEG ratio of 2.15 and a beta of 0.44. The stock's 50 day simple moving average is GBX 168.81 and its two-hundred day simple moving average is GBX 150.32.

Insider Activity

In other Serica Energy news, insider Martin Copeland purchased 45,000 shares of the stock in a transaction dated Thursday, July 3rd. The shares were bought at an average price of GBX 161 per share, with a total value of £72,450. 63.80% of the stock is currently owned by company insiders.

About Serica Energy

Serica Energy plc, an upstream oil and gas company, identifies, acquires, explores, exploits, and produces oil and gas reserves in the United Kingdom. The company holds 100% interest in the Keith oil field; 98% interest in the Bruce field; and 50% interest in the Rhum gas field located in the Northern North Sea, as well as 18% non-operating interest in the Erskine field located in Central North Sea.