MEG Energy (TSE:MEG) Reaches New 1-Year Low – Here’s Why

MEG Energy Corp. (TSE:MEG) reached a new 52-week low on Friday . The company traded as low as C$19.37 and last traded at C$19.55, with a volume of 2383225 shares changing hands. The stock had previously closed at C$22.81.

Analyst Ratings Changes

Several brokerages have commented on MEG. National Bankshares lifted their target price on MEG Energy from C$27.00 to C$28.00 and gave the stock a “sector perform” rating in a report on Thursday, January 30th. TD Securities cut their price objective on MEG Energy from C$33.00 to C$32.00 and set a “buy” rating on the stock in a research note on Friday, February 28th. Desjardins downgraded shares of MEG Energy from a “buy” rating to a “hold” rating and decreased their target price for the company from C$29.00 to C$26.50 in a research report on Wednesday, March 19th. Scotiabank upgraded shares of MEG Energy to a “strong-buy” rating in a report on Wednesday, March 19th. Finally, Royal Bank of Canada reduced their price objective on shares of MEG Energy from C$33.00 to C$31.00 in a research note on Tuesday, January 14th. Five research 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 data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of C$30.95.

MEG Energy Stock 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 firm has a market capitalization of C$5.17 billion, a P/E ratio of 10.57, a price-to-earnings-growth ratio of 0.17 and a beta of 2.89. The company’s 50 day moving average is C$23.51 and its 200-day moving average is C$24.53.

MEG Energy Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, April 15th. Stockholders of record on Tuesday, April 15th will be paid a $0.10 dividend. The ex-dividend date of this dividend is Thursday, March 20th. This represents a $0.40 annualized dividend and a dividend yield of 2.01%. MEG Energy’s dividend payout ratio is presently 21.19%.

Insider Activity at MEG Energy

In other MEG Energy news, Senior Officer Erik Alexander Alson sold 32,728 shares of the firm’s stock in a transaction on 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 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 transaction of C$2,215,416.96. 0.33% of the stock is currently owned by corporate insiders.

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.