Serica Energy (LON:SQZ) Shares Down 15.3% - Here's What Happened

Key Points

• Serica Energy's share price fell by 15.3%, closing at GBX 150.60 ($2.04), following increased trading volume that surpassed the daily average by 1,257%.
• Despite the drop, analysts from several firms, including JPMorgan and Canaccord Genuity, reaffirmed a "buy" rating with target prices around GBX 190-215, giving the stock a consensus target of GBX 203.
• Insider Martin Copeland purchased 45,000 shares at an average cost of GBX 161 per share, indicating a level of confidence in the company's prospects as insiders hold 63.80% of the stock.

Serica Energy plc (LON:SQZ - Get Free Report)'s share price dropped 15.3% on Wednesday . The company traded as low as GBX 146 ($1.98) and last traded at GBX 150.60 ($2.04). Approximately 29,118,072 shares changed hands during trading, an increase of 1,257% from the average daily volume of 2,146,250 shares. The stock had previously closed at GBX 177.80 ($2.41).

Wall Street Analyst Weigh In

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

Serica Energy Trading Down 0.2%

The firm has a market cap of £624.06 million, a price-to-earnings ratio of -1,997.50, a price-to-earnings-growth ratio of 2.15 and a beta of 0.44. The business's 50 day moving average price is GBX 168.81 and its 200-day moving average price is GBX 150.32. The company has a debt-to-equity ratio of 26.31, a quick ratio of 1.22 and a current ratio of 1.69.

Insider Activity

In related news, insider Martin Copeland bought 45,000 shares of the business's stock in a transaction dated Thursday, July 3rd. The shares were acquired at an average price 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.