MEG Energy (TSE:MEG) Shares Down 8.3% After Analyst Downgrade

MEG Energy Corp. (TSE:MEG) traded down 8.3% during trading on Thursday after CIBC lowered their price target on the stock from C$32.00 to C$28.00. The company traded as low as C$19.15 and last traded at C$19.43. 887,654 shares were traded during trading, a decline of 67% from the average session volume of 2,728,785 shares. The stock had previously closed at C$21.20.

Several other research analysts have also recently weighed in on MEG. Desjardins cut shares of MEG Energy from a “buy” rating to a “hold” rating and dropped their price objective for the stock from C$29.00 to C$26.50 in a research report on Wednesday, March 19th. Scotiabank raised shares of MEG Energy to a “strong-buy” rating in a research note on Wednesday, March 19th. Royal Bank of Canada cut their target price on MEG Energy from C$33.00 to C$31.00 in a research note on Tuesday, January 14th. TD Securities lowered their price target on MEG Energy from C$33.00 to C$32.00 and set a “buy” rating for the company in a research note on Friday, February 28th. Finally, National Bankshares raised their price objective on MEG Energy from C$27.00 to C$28.00 and gave the stock a “sector perform” rating in a research note on Thursday, January 30th. Five analysts have rated the stock with a hold rating, one has given a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat, MEG Energy presently has a consensus rating of “Hold” and an average price target of C$30.35.

Insider Activity

In other news, Senior Officer Erik Alexander Alson sold 32,728 shares of MEG Energy stock in a transaction dated Saturday, March 15th. The shares were sold at an average price of C$24.19, for a total value of C$791,690.32. Also, Director Darlene Miriam Gates sold 91,584 shares of the business’s stock in a transaction dated Saturday, March 15th. The stock was sold at an average price of C$24.19, for a total transaction of C$2,215,416.96. 0.33% of the stock is owned by corporate insiders.

MEG Energy Price Performance

The company has a quick ratio of 1.17, a current ratio of 1.55 and a debt-to-equity ratio of 22.80. The business has a fifty day moving average of C$23.13 and a 200 day moving average of C$24.34. The firm has a market cap of C$5.05 billion, a P/E ratio of 10.31, a PEG ratio of 0.17 and a beta of 2.89.

MEG Energy Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, April 15th. Investors of record on Tuesday, April 15th will be paid a $0.10 dividend. This represents a $0.40 dividend on an annualized basis and a yield of 2.05%. The ex-dividend date of this dividend is Thursday, March 20th. MEG Energy’s dividend payout ratio (DPR) is presently 21.19%.

About MEG Energy

MEG Energy is engaged in in situ oil sands development and production in Alberta, Canada. As of March 2021, the company reported estimated net proved and probable reserves of 2 billion barrels of oil equivalent. Net production averaged 82,000 barrels per day in 2020.