Vermilion Energy (TSE:VET) Shares Down 10.8% - Here's What Happened

Key Points

• Shares plunged about 11% intraday to C$16.55 from a C$18.56 close, trading below average volume as the stock fell sharply on Wednesday.
• Wall Street consensus is a "Hold" with an average price target of C$17.79; analyst opinions are mixed (two Buys, five Holds) though several firms have recently raised target prices.
• Vermilion reported a quarterly loss of C($0.95) per share with negative margins and ROE, yet it raised its quarterly dividend to $0.135 (annualized $0.54, ~3.3% yield); insiders have made small share sales recently.

Vermilion Energy Inc. (TSE:VET - Get Free Report) NYSE: VET shares fell 10.8% during trading on Wednesday . The stock traded as low as C$16.42 and last traded at C$16.55. 875,194 shares traded hands during mid-day trading, a decline of 35% from the average session volume of 1,342,872 shares. The stock had previously closed at C$18.56.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on VET. Desjardins boosted their price target on Vermilion Energy from C$13.50 to C$16.00 and gave the stock a "hold" rating in a research report on Monday, March 9th. TD Securities lowered Vermilion Energy from a "buy" rating to a "hold" rating and upped their target price for the company from C$14.00 to C$16.00 in a research report on Thursday, March 5th. ATB Cormark Capital Markets raised Vermilion Energy from a "hold" rating to a "moderate buy" rating and upped their target price for the company from C$16.00 to C$24.00 in a research report on Friday, March 27th. Royal Bank Of Canada upped their target price on Vermilion Energy from C$15.00 to C$22.00 and gave the company a "sector perform" rating in a research report on Wednesday, April 8th. Finally, National Bank Financial upped their target price on Vermilion Energy from C$14.50 to C$18.50 and gave the company an "outperform" rating in a research report on Tuesday, February 3rd. Two analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, Vermilion Energy currently has a consensus rating of "Hold" and an average price target of C$17.79.

Vermilion Energy Trading Down 12.9%

The company has a debt-to-equity ratio of 58.60, a quick ratio of 0.40 and a current ratio of 0.84. The company has a 50 day simple moving average of C$17.07 and a two-hundred day simple moving average of C$13.84. The firm has a market cap of C$2.47 billion, a PE ratio of -3.80, a P/E/G ratio of -0.02 and a beta of 0.53.

Vermilion Energy (TSE:VET - Get Free Report) NYSE: VET last posted its quarterly earnings results on Wednesday, May 6th. The company reported C($0.95) earnings per share for the quarter. Vermilion Energy had a negative net margin of 34.23% and a negative return on equity of 24.89%. The firm had revenue of C$519.13 million for the quarter. Analysts expect that Vermilion Energy Inc. will post 1.3956262 EPS for the current fiscal year.

Vermilion Energy Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Tuesday, March 31st were issued a dividend of $0.135 per share. The ex-dividend date of this dividend was Friday, March 13th. This is an increase from Vermilion Energy's previous quarterly dividend of $0.13. This represents a $0.54 dividend on an annualized basis and a dividend yield of 3.3%. Vermilion Energy's payout ratio is currently -12.24%.

Insider Activity at Vermilion Energy

In related news, insider Yvonne Jeffery sold 6,332 shares of the stock in a transaction that occurred on Tuesday, March 31st. The stock was sold at an average price of C$19.51, for a total value of C$123,537.32. Following the completion of the sale, the insider owned 30,527 shares of the company's stock, valued at approximately C$595,581.77. This trade represents a 17.18% decrease in their ownership of the stock. Also, insider Gerard Schut sold 10,000 shares of the stock in a transaction that occurred on Thursday, March 19th. The shares were sold at an average price of C$19.00, for a total value of C$190,000.00. Following the completion of the sale, the insider directly owned 94,268 shares of the company's stock, valued at approximately C$1,791,092. This represents a 9.59% decrease in their position. 0.16% of the stock is currently owned by company insiders.

Vermilion Energy Company Profile

Vermilion Energy Inc is an international oil and gas producing company. It engages in full-cycle exploration and production programs that focus on the acquisition, exploration, development, and optimization of producing properties in North America, Europe, and Australia. The majority of Vermilion's revenue has derived from the production and sale of petroleum and natural gas. In each market, the company relies on a host of drilling and well completion techniques to keep production at attractive levels.

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