Strathcona Resources (TSE:SCR) Stock Price Down 24.7% - Should You Sell?

Key Points

• Shares plunged 24.7% intraday to about C$29.47 (low C$29.21) from a prior close of C$39.16, with volume rising ~43% to ~113,715 shares versus the 79,259 average.
• Analyst sentiment is mixed but cautious: the consensus rating is "Hold" with a consensus price target of C$36.86 (1 Strong Buy, 1 Buy, 6 Hold), and several recent price-target and rating revisions from major brokers.
• Fundamentals show a market cap of C$6.36B, a low PE of 5.8, a quarterly dividend of $0.30 (4.0% yield, DPR ~21.7%), and a debt-to-equity ratio of 56.06, indicating both income potential and leveraged exposure.

Strathcona Resources Ltd. (TSE:SCR - Get Free Report) shares dropped 24.7% during mid-day trading on Tuesday . The stock traded as low as C$29.21 and last traded at C$29.47. Approximately 113,715 shares traded hands during mid-day trading, an increase of 43% from the average daily volume of 79,259 shares. The stock had previously closed at C$39.16.

Analyst Ratings Changes

A number of brokerages recently issued reports on SCR. Natl Bk Canada cut Strathcona Resources from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, December 3rd. National Bankshares lowered their price target on shares of Strathcona Resources from C$38.00 to C$36.00 and set a "sector perform" rating on the stock in a research report on Wednesday, October 22nd. Royal Bank Of Canada raised their price objective on shares of Strathcona Resources from C$36.00 to C$40.00 and gave the stock a "sector perform" rating in a report on Thursday, October 16th. Jefferies Financial Group boosted their target price on shares of Strathcona Resources from C$34.00 to C$38.00 in a report on Tuesday, November 11th. Finally, TD Securities raised their price target on Strathcona Resources from C$35.00 to C$36.00 and gave the stock a "hold" rating in a report on Friday, November 7th. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of C$36.86.

Strathcona Resources Stock Performance

The company has a debt-to-equity ratio of 56.06, a quick ratio of 11.09 and a current ratio of 0.53. The stock has a market cap of C$6.36 billion, a PE ratio of 5.80, a PEG ratio of -2.02 and a beta of 2.61. The company's 50-day moving average price is C$39.84 and its two-hundred day moving average price is C$36.43.

Strathcona Resources Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Monday, December 15th. Shareholders of record on Monday, December 15th were paid a dividend of $0.30 per share. The ex-dividend date of this dividend was Friday, December 5th. This represents a $1.20 annualized dividend and a dividend yield of 4.0%. Strathcona Resources's dividend payout ratio (DPR) is 21.68%.

About Strathcona Resources

Strathcona Resources Ltd. is a Canada-based oil and gas producers with operations focused on thermal oil, enhanced oil recovery and liquids-rich natural gas. The Company has three operations, including Lloydminster Heavy Oil, Cold Lake Thermal Oil and Montney. The Lloydminster Heavy Oil segment has multiple large oil-in-place reservoirs with existing and expanding enhanced oil recovery (EOR) opportunities primarily located in southwest Saskatchewan. Its Saskatchewan thermal properties rely on the same steam-assisted gravity drainage (SAGD) processes as its Cold Lake Thermal properties.

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