Tourmaline Oil (TSE:TOU) Downgraded to "Hold" Rating by Canaccord Genuity Group

Key Points

• Canaccord Genuity downgraded Tourmaline Oil from "buy" to "hold" and set a C$70 target (implying ~8.9% upside), while the consensus among analysts is a "Moderate Buy" with an average target of C$71.00.
• Shares traded down to C$64.30; the company has a market cap of C$24.97 billion, a P/E of 94.56, and reported Q1 EPS of C$1.69 on C$1.78 billion in revenue with a 5.03% net margin.
• Insiders bought stock recently (8,500 shares worth about C$527,580 last quarter), bringing insider ownership to 5.13%, which may indicate management confidence despite mixed analyst views.

Tourmaline Oil (TSE:TOU - Get Free Report) was downgraded by research analysts at Canaccord Genuity Group from a "buy" rating to a "hold" rating in a research note issued to investors on Thursday,BayStreet.CA reports. They currently have a C$70.00 price objective on the stock. Canaccord Genuity Group's target price would indicate a potential upside of 8.86% from the company's current price.

Several other brokerages have also weighed in on TOU. ATB Cormark Capital Markets decreased their price objective on Tourmaline Oil from C$74.00 to C$73.00 and set an "outperform" rating on the stock in a report on Friday, March 6th. Desjardins raised their target price on Tourmaline Oil from C$70.00 to C$74.00 and gave the stock a "buy" rating in a research report on Monday, March 9th. Canadian Imperial Bank of Commerce decreased their price target on shares of Tourmaline Oil from C$71.00 to C$66.00 in a research note on Tuesday, January 13th. Scotiabank upgraded shares of Tourmaline Oil to a "strong-buy" rating in a research note on Wednesday, April 1st. Finally, Raymond James Financial raised their price objective on shares of Tourmaline Oil from C$69.00 to C$72.00 in a report on Thursday, March 5th. Three investment analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of C$71.00.

Tourmaline Oil Stock Performance

Shares of TSE:TOU traded down C$2.55 on Thursday, hitting C$64.30. 2,744,542 shares of the company were exchanged, compared to its average volume of 2,768,481. The company's 50 day moving average price is C$64.29 and its two-hundred day moving average price is C$62.54. The firm has a market capitalization of C$24.97 billion, a price-to-earnings ratio of 94.56, a PEG ratio of 1.72 and a beta of -0.12. The company has a debt-to-equity ratio of 12.25, a quick ratio of 0.47 and a current ratio of 0.83. Tourmaline Oil has a one year low of C$56.72 and a one year high of C$70.57.

Tourmaline Oil (TSE:TOU - Get Free Report) last released its earnings results on Wednesday, May 6th. The company reported C$1.69 earnings per share for the quarter. The business had revenue of C$1.78 billion for the quarter. Tourmaline Oil had a return on equity of 1.65% and a net margin of 5.03%. Research analysts expect that Tourmaline Oil will post 5.6809091 earnings per share for the current year.

Insiders Place Their Bets

In related news, insider Mike Rose acquired 5,000 shares of the company's stock in a transaction on Friday, April 24th. The stock was purchased at an average cost of C$59.45 per share, for a total transaction of C$297,250.00. Following the completion of the purchase, the insider directly owned 1,500,000 shares of the company's stock, valued at C$89,175,000. The trade was a 0.33% increase in their position. Also, insider James William Alexander Heard acquired 1,000 shares of the business's stock in a transaction on Friday, April 17th. The shares were bought at an average cost of C$59.08 per share, with a total value of C$59,080.00. Following the completion of the acquisition, the insider owned 66,476 shares of the company's stock, valued at approximately C$3,927,402.08. This trade represents a 1.53% increase in their position. Insiders acquired 8,500 shares of company stock worth $527,580 over the last quarter. Company insiders own 5.13% of the company's stock.

Tourmaline Oil Company Profile

Tourmaline is Canada's largest and most active natural gas producer dedicated to producing the lowest-development-cost natural gas in North America. We are an investment grade exploration and production company providing strong and predictable operating and financial performance through the development of our three core areas in the Western Canadian Sedimentary Basin. With our existing large reserve base, decades-long drilling inventory, relentless focus on execution, cost management, safety and environmental performance improvement, we are excited to provide shareholders an excellent return on capital and an attractive source of income through our base dividend and surplus free cash flow distribution strategies.

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