Strathcona Resources (TSE:SCR) Stock Price Passes Above Fifty Day Moving Average - Here's Why

Key Points

• Strathcona Resources shares rose above their 50-day moving average, reaching C$43.37 and closing at C$43.25, compared with a 50-day average of C$40.81.
• Analyst sentiment is generally positive: Jefferies upgraded the stock to “buy” with a C$56 target, TD Securities raised its rating to “strong buy,” and the consensus rating is “Buy” with a C$43 target price.
• The company reported C$1.76 in quarterly EPS on C$2.73 billion in revenue and maintains a quarterly dividend of $0.30 per share, equivalent to a 2.8% yield and a 30.46% payout ratio.

Strathcona Resources Ltd. (TSE:SCR - Get Free Report)'s share price passed above its 50 day moving average during trading on Friday . The stock has a 50 day moving average of C$40.81 and traded as high as C$43.37. Strathcona Resources shares last traded at C$43.25, with a volume of 296,392 shares.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on SCR. Jefferies Financial Group raised Strathcona Resources from a "hold" rating to a "buy" rating and upped their price target for the company from C$45.00 to C$56.00 in a report on Thursday, June 4th. TD Securities upgraded Strathcona Resources from a "hold" rating to a "strong-buy" rating in a report on Friday, April 17th. Finally, National Bank Financial decreased their target price on Strathcona Resources from C$68.00 to C$66.00 and set an "outperform" rating for the company in a research report on Wednesday, July 8th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Buy" and a consensus target price of C$43.00.

Strathcona Resources Price Performance

The firm's 50-day moving average is C$40.81 and its 200-day moving average is C$38.62. The company has a debt-to-equity ratio of 43.82, a current ratio of 0.43 and a quick ratio of 11.09. The company has a market capitalization of C$9.27 billion, a P/E ratio of 10.98, a price-to-earnings-growth ratio of -2.02 and a beta of 2.61.

Strathcona Resources (TSE:SCR - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The company reported C$1.76 earnings per share for the quarter. Strathcona Resources had a net margin of 19.41% and a return on equity of 17.02%. The business had revenue of C$2.73 billion for the quarter. Analysts predict that Strathcona Resources Ltd. will post 2.8494405 EPS for the current fiscal year.

Strathcona Resources Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, June 17th. Shareholders of record on Wednesday, June 17th were issued a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a yield of 2.8%. The ex-dividend date of this dividend was Monday, June 8th. Strathcona Resources's payout ratio is currently 30.46%.

About Strathcona Resources

Strathcona is one of North America's fastest growing pure play heavy oil producers with operations focused on thermal oil and enhanced oil recovery. Strathcona is built on an innovative approach to growth achieved through the consolidation and development of long-life assets. The Company has three operations, including Cold Lake, Lloydminster Thermal and Lloydminster Conventional. Strathcona is a major producer in the Cold Lake region of Alberta. Our operations include thermal oil producing assets at Lindbergh, Orion and Tucker, with production from best-in-class steam-assisted gravity drainage (SAGD) oil assets.

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