MEG Energy (TSE:MEG) Stock Price Down 8.8% After Analyst Downgrade

MEG Energy Corp. (TSE:MEG)’s share price traded down 8.8% during trading on Thursday after CIBC lowered their price target on the stock from C$32.00 to C$28.00. The stock traded as low as C$19.15 and last traded at C$19.33. 708,715 shares traded hands during mid-day trading, a decline of 74% from the average session volume of 2,726,575 shares. The stock had previously closed at C$21.20.

Other equities research analysts have also issued reports about the stock. Desjardins lowered shares of MEG Energy from a “buy” rating to a “hold” rating and cut their price target for the stock from C$29.00 to C$26.50 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 report on Tuesday, January 14th. National Bankshares upped their target price on MEG Energy from C$27.00 to C$28.00 and gave the company a “sector perform” rating in a research report on Thursday, January 30th. Scotiabank raised MEG Energy to a “strong-buy” rating in a research report on Wednesday, March 19th. Finally, TD Securities decreased their price objective on MEG Energy from C$33.00 to C$32.00 and set a “buy” rating for the company in a report on Friday, February 28th. Five equities research analysts have rated the stock with a hold rating, one has assigned a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of C$30.35.

Insider Activity

In related news, Director Darlene Miriam Gates sold 91,584 shares of the firm’s 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$2,215,416.96. Also, Senior Officer Erik Alexander Alson sold 32,728 shares of the business’s stock in a transaction that occurred on Saturday, March 15th. The stock was sold at an average price of C$24.19, for a total value of C$791,690.32. Insiders own 0.33% of the company’s stock.

MEG Energy Price Performance

The company has a debt-to-equity ratio of 22.80, a quick ratio of 1.17 and a current ratio of 1.55. The company has a 50-day moving average of C$23.13 and a 200-day moving average of C$24.34. The stock has a market capitalization of C$5.05 billion, a price-to-earnings ratio of 10.31, a P/E/G ratio of 0.17 and a beta of 2.89.

MEG Energy Announces Dividend

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

MEG Energy Company Profile

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.