Surge Energy (TSE:SGY) Reaches New 1-Year High - Time to Buy?

Key Points

• Surge Energy shares hit a new 52‑week high of C$9.72 and traded around C$9.68, as Raymond James upgraded the stock to a moderate buy and raised its target to C$11 while the consensus price target sits at C$9.75.
• The company declared a monthly dividend of C$0.0433 (annualized yield ~5.4%) with an ex-dividend date of April 30, but the payout ratio is about 130%, signaling the dividend may be unsustainably high.
• Insiders have sold 34,124 shares (~$318k) in the past three months and now own only ~1.97% of the company, which could be a cautionary sign for investors.

Surge Energy Inc. (TSE:SGY - Get Free Report)'s share price hit a new 52-week high on Monday . The company traded as high as C$9.72 and last traded at C$9.68, with a volume of 258971 shares. The stock had previously closed at C$9.46.

Analysts Set New Price Targets

Separately, Raymond James Financial upgraded Surge Energy from a "hold" rating to a "moderate buy" rating and upped their target price for the company from C$9.00 to C$11.00 in a research note on Monday, March 30th. One equities research analyst has rated the stock with a Strong Buy rating and two have issued a Buy rating to the company's stock. According to MarketBeat, Surge Energy presently has an average rating of "Buy" and a consensus price target of C$9.75.

Surge Energy Stock Performance

The company has a quick ratio of 0.40, a current ratio of 0.78 and a debt-to-equity ratio of 33.64. The company has a market cap of C$956.78 million, a PE ratio of 24.20, a P/E/G ratio of 0.59 and a beta of -0.21. The stock's 50 day simple moving average is C$8.59 and its two-hundred day simple moving average is C$7.57.

Surge Energy (TSE:SGY - Get Free Report) last announced its quarterly earnings data on Wednesday, March 4th. The company reported C$0.55 earnings per share (EPS) for the quarter. The company had revenue of C$111.40 million during the quarter. Surge Energy had a net margin of 7.21% and a return on equity of 5.47%.

Surge Energy Dividend Announcement

The company also recently declared a monthly dividend, which will be paid on Friday, May 15th. Shareholders of record on Friday, May 15th will be given a dividend of $0.0433 per share. This represents a c) dividend on an annualized basis and a yield of 5.4%. The ex-dividend date of this dividend is Thursday, April 30th. Surge Energy's payout ratio is 130.00%.

Insider Transactions at Surge Energy

In related news, Director Allison Michelle Maher sold 8,999 shares of the firm's stock in a transaction that occurred on Thursday, March 12th. The shares were sold at an average price of C$8.56, for a total value of C$77,031.44. Following the transaction, the director owned 17,612 shares in the company, valued at approximately C$150,758.72. This trade represents a 33.82% decrease in their ownership of the stock. Also, insider Jared Ducs sold 5,125 shares of Surge Energy stock in a transaction that occurred on Monday, March 30th. The shares were sold at an average price of C$9.39, for a total transaction of C$48,123.75. Following the transaction, the insider directly owned 127,356 shares in the company, valued at approximately C$1,195,872.84. This trade represents a 3.87% decrease in their ownership of the stock. Insiders have sold a total of 34,124 shares of company stock worth $317,955 in the last three months. 1.97% of the stock is currently owned by company insiders.

Surge Energy Company Profile

Surge Energy Inc is engaged in the exploration, development, and production of oil and gas from properties in western Canada. The company generates its revenue from the sale of petroleum and natural gas products such as Oil, Natural gas liquids and Natural gas, of which a majority of the revenue is derived from the sale of oil.

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