Tullow Oil (LON:TLW) Stock Price Down 19% - Here's Why

Key Points

• Tullow Oil's shares plummeted 19% on Wednesday, with trading volumes surging 312% compared to average levels.
• Brokerages maintain a cautious outlook, with Shore Capital reaffirming a "buy" rating and Canaccord Genuity raising its price objective from GBX 14 to GBX 16.
• The company aims for Net Zero on its Scope 1 and 2 emissions by 2030, focusing on responsible oil and gas development in Africa.

Tullow Oil plc (LON:TLW - Get Free Report) fell 19% during trading on Wednesday . The stock traded as low as GBX 11.20 ($0.15) and last traded at GBX 11.60 ($0.16). 32,951,082 shares were traded during mid-day trading, an increase of 312% from the average session volume of 7,989,093 shares. The stock had previously closed at GBX 14.32 ($0.19).

Analysts Set New Price Targets

Several analysts recently issued reports on TLW shares. Shore Capital decreased their target price on Tullow Oil from GBX 45 ($0.61) to GBX 30 ($0.40) and set a "buy" rating on the stock in a research note on Friday. Jefferies Financial Group reissued an "underperform" rating and set a GBX 12 ($0.16) target price on shares of Tullow Oil in a research note on Thursday. Finally, Canaccord Genuity Group cut their price target on Tullow Oil from GBX 16 ($0.22) to GBX 10 ($0.13) and set a "hold" rating for the company in a report on Thursday.

Tullow Oil Price Performance

The firm has a market cap of £184.79 million, a PE ratio of 11.80, a PEG ratio of -0.19 and a beta of 2.08. The firm has a fifty day simple moving average of GBX 16.01 and a two-hundred day simple moving average of GBX 15.49. The company has a debt-to-equity ratio of -1,776.31, a quick ratio of 0.63 and a current ratio of 0.70.

Insiders Place Their Bets

In related news, insider Roald Goethe bought 2,000,000 shares of the company's stock in a transaction dated Wednesday, August 6th. The stock was purchased at an average price of GBX 12 ($0.16) per share, for a total transaction of £240,000 ($322,797.58). 24.59% of the stock is owned by corporate insiders.

Tullow Oil Company Profile

Tullow is an independent energy company that is building a better future through responsible oil and gas development in Africa. The Company's operations are focused on its West-African producing assets in Ghana, Gabon and Côte d'Ivoire, alongside a material discovered resource base in Kenya. Tullow is committed to becoming Net Zero on its Scope 1 and 2 emissions by 2030 and has a Shared Prosperity strategy that delivers lasting socio-economic benefits for its host nations.