Strathcona Resources (TSE:SCR) Trading Down 3.1% - Here's Why

Key Points

• Strathcona Resources Ltd. (TSE:SCR) saw its stock price drop by 3.1%, closing at C$32.97 after trading as low as C$32.77.
• The company recently increased its quarterly dividend from $0.26 to $0.30 per share, representing a 3.6% yield.
• Analysts have mixed views on the stock, with price targets ranging from C$33.00 to C$42.00, and a consensus rating of "Moderate Buy."

Strathcona Resources Ltd. (TSE:SCR - Get Free Report)'s share price traded down 3.1% during mid-day trading on Monday . The stock traded as low as C$32.77 and last traded at C$32.97. 61,190 shares changed hands during trading, an increase of 14% from the average session volume of 53,514 shares. The stock had previously closed at C$34.02.

Wall Street Analyst Weigh In

Several brokerages have commented on SCR. Royal Bank Of Canada upped their target price on shares of Strathcona Resources from C$34.00 to C$36.00 in a research note on Thursday, May 22nd. ATB Capital lifted their target price on Strathcona Resources from C$32.00 to C$35.00 and gave the stock a "sector perform" rating in a report on Tuesday, June 17th. CIBC lowered their price target on Strathcona Resources from C$37.00 to C$33.00 in a report on Thursday, April 10th. Cibc World Mkts lowered Strathcona Resources from a "strong-buy" rating to a "hold" rating in a research report on Thursday, July 3rd. Finally, National Bankshares set a C$42.00 target price on shares of Strathcona Resources and gave the stock an "outperform" rating in a report on Monday, June 30th. Six investment analysts have rated the stock with a hold rating, one has assigned a buy rating and two have given a strong buy rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of C$34.86.

Strathcona Resources Trading Down 0.2%

The company has a current ratio of 0.53, a quick ratio of 11.09 and a debt-to-equity ratio of 56.06. The business has a 50 day moving average price of C$31.63 and a 200-day moving average price of C$28.64. The company has a market cap of C$7.26 billion and a P/E ratio of 19.57.

Strathcona Resources Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, September 22nd. Stockholders of record on Friday, September 12th will be issued a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 3.5%. Strathcona Resources's payout ratio is 57.67%.

Insider Activity

In other Strathcona Resources news, Director Connie De Ciancio purchased 4,293 shares of Strathcona Resources stock in a transaction that occurred on Monday, July 14th. The stock was acquired at an average price of C$32.50 per share, for a total transaction of C$139,522.50. Also, Senior Officer Pit Kim Chiu purchased 1,665 shares of the business's stock in a transaction on Wednesday, June 11th. The shares were acquired at an average cost of C$30.00 per share, with a total value of C$49,950.00. Insiders purchased a total of 6,783 shares of company stock valued at $214,404 over the last quarter. 91.34% of the stock is currently owned by company insiders.

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.