Tourmaline Oil (TSE:TOU) Shares Down 5.5% After Analyst Downgrade

Key Points

• Shares fell 5.5% intraday after BMO Capital Markets downgraded Tourmaline from "outperform" to "market perform" while setting a C$70 price target; the stock traded as low as C$62.52 on mid-day volume of ~662,158 shares (‑76% vs. average).
• Analyst sentiment remains generally positive with a MarketBeat consensus of "Moderate Buy" and a C$71.00 average target, as several firms still carry Outperform/Strong‑Buy ratings despite recent mixed price target revisions.
• Insiders purchased 8,500 shares in the past 90 days and own 5.13% of the company; Tourmaline reported C$1.69 EPS for the quarter, has a C$25.18B market cap, a high P/E of 95.38, and pays a C$0.50 quarterly dividend (~3.1% yield).

Tourmaline Oil Corp. (TSE:TOU - Get Free Report)'s share price dropped 5.5% during mid-day trading on Thursday after BMO Capital Markets downgraded the stock from an outperform rating to a market perform rating. BMO Capital Markets now has a C$70.00 price target on the stock, up from their previous price target of C$67.00. Tourmaline Oil traded as low as C$62.52 and last traded at C$63.15. Approximately 662,158 shares changed hands during mid-day trading, a decline of 76% from the average daily volume of 2,740,842 shares. The stock had previously closed at C$66.85.

A number of other research analysts also recently commented on the stock. ATB Cormark Capital Markets reduced their price objective on shares of Tourmaline Oil from C$74.00 to C$73.00 and set an "outperform" rating on the stock in a research note on Friday, March 6th. Royal Bank Of Canada reduced their price target on shares of Tourmaline Oil from C$76.00 to C$72.00 and set an "outperform" rating on the stock in a research report on Friday, March 6th. Canadian Imperial Bank of Commerce reduced their price target on shares of Tourmaline Oil from C$71.00 to C$66.00 in a research report on Tuesday, January 13th. Desjardins raised their price target on shares of 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. Finally, Scotiabank upgraded shares of Tourmaline Oil to a "strong-buy" rating in a research report on Wednesday, April 1st. Three equities research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of C$71.00.

Insider Transactions at Tourmaline Oil

In other news, insider James William Alexander Heard acquired 1,000 shares of the company's stock in a transaction that occurred on Friday, April 17th. The shares were acquired at an average price of C$59.08 per share, with a total value of C$59,080.00. Following the acquisition, the insider directly owned 66,476 shares in the company, valued at approximately C$3,927,402.08. The trade was a 1.53% increase in their ownership of the stock. Also, insider Mike Rose acquired 5,000 shares of the company's stock in a transaction that occurred 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 acquisition, the insider owned 1,500,000 shares in the company, valued at approximately C$89,175,000. This trade represents a 0.33% increase in their ownership of the stock. In the last ninety days, insiders purchased 8,500 shares of company stock worth $527,580. Corporate insiders own 5.13% of the company's stock.

Tourmaline Oil Stock Performance

The stock has a market cap of C$25.18 billion, a price-to-earnings ratio of 95.38, 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. The company's 50 day simple moving average is C$64.29 and its 200 day simple moving average is C$62.54.

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

Tourmaline Oil Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Tuesday, March 31st were paid a dividend of $0.50 per share. The ex-dividend date of this dividend was Monday, March 16th. This represents a $2.00 annualized dividend and a yield of 3.1%. Tourmaline Oil's dividend payout ratio (DPR) is presently 294.12%.

About Tourmaline Oil

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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