Serica Energy (LON:SQZ) Shares Down 11.8% - Should You Sell?

Key Points

• Serica Energy's shares dropped by 11.8%, closing at GBX 156.88 ($2.12), with an unusual trading volume of 24 million shares during the session.
• Despite the recent decline, the stock has a consensus rating of "Buy" from equity analysts, with a target price averaging around GBX 203.
• Company insider Martin Copeland bought 45,000 shares at GBX 161 per share, indicating confidence in the company's future performance as insiders hold 63.80% ownership.

Serica Energy plc (LON:SQZ - Get Free Report) shares fell 11.8% during mid-day trading on Wednesday . The company traded as low as GBX 146 ($1.98) and last traded at GBX 156.88 ($2.13). 24,197,561 shares traded hands during trading, an increase of 1,042% from the average session volume of 2,118,132 shares. The stock had previously closed at GBX 177.80 ($2.41).

Wall Street Analyst Weigh In

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

Serica Energy Trading Down 0.2%

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

Insider Activity at Serica Energy

In other news, insider Martin Copeland acquired 45,000 shares of Serica Energy stock in a transaction dated Thursday, July 3rd. The shares were purchased at an average cost of GBX 161 per share, for a total transaction of £72,450. Company insiders own 63.80% of the company's stock.

Serica Energy Company Profile

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.