Strathcona Resources (TSE:SCR) Share Price Passes Below 50-Day Moving Average – Should You Sell?

Strathcona Resources Ltd. (TSE:SCR)’s share price passed below its fifty day moving average during trading on Tuesday . The stock has a fifty day moving average of C$27.72 and traded as low as C$27.59. Strathcona Resources shares last traded at C$27.80, with a volume of 13,934 shares.

Analysts Set New Price Targets

A number of brokerages have weighed in on SCR. Jefferies Financial Group increased their price target on Strathcona Resources from C$30.00 to C$32.00 in a research note on Monday, December 16th. Atb Cap Markets lowered Strathcona Resources from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, December 18th. Royal Bank of Canada reduced their price target on Strathcona Resources from C$35.00 to C$34.00 and set a “sector perform” rating on the stock in a research note on Thursday, March 6th. TD Securities reduced their price target on Strathcona Resources from C$32.00 to C$29.00 and set a “hold” rating on the stock in a research note on Thursday, March 6th. Finally, CIBC increased their target price on Strathcona Resources from C$35.00 to C$37.00 in a research report on Friday, January 17th. Four equities research analysts have rated the stock with a hold rating, one has issued a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, Strathcona Resources has an average rating of “Moderate Buy” and an average price target of C$35.50.

Strathcona Resources Stock Up 1.6 %

The firm has a market capitalization of C$6.31 billion and a PE ratio of 17.00. The company has a current ratio of 0.53, a quick ratio of 11.09 and a debt-to-equity ratio of 56.06. The firm has a 50-day moving average of C$27.64 and a two-hundred day moving average of C$28.64.

Strathcona Resources Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, March 31st. Investors of record on Monday, March 31st will be issued a $0.26 dividend. This is an increase from Strathcona Resources’s previous quarterly dividend of $0.25. This represents a $1.04 annualized dividend and a yield of 3.53%. The ex-dividend date of this dividend is Friday, March 21st. Strathcona Resources’s dividend payout ratio is currently 57.67%.

Insider Activity at Strathcona Resources

In related news, Senior Officer Allan Grabas purchased 8,802 shares of the stock in a transaction that occurred on Monday, March 10th. The stock was purchased at an average cost of C$27.47 per share, for a total transaction of C$241,790.94. Also, Senior Officer Pit Kim Chiu purchased 1,600 shares of the stock in a transaction that occurred on Friday, December 20th. The stock was bought at an average price of C$28.05 per share, with a total value of C$44,887.04. In the last three months, insiders purchased 20,450 shares of company stock worth $593,656. Corporate insiders own 91.34% of the company’s stock.

About Strathcona Resources

Strathcona Resources Ltd. acquires, explores, develops, and produces petroleum and natural gas reserves in Canada. It operates through three segments: Cold Lake Thermal, Lloydminster Heavy Oil, and Montney. The Cold Lake Thermal segment includes three producing assets in the Cold Lake region of Northern Alberta; and Lindbergh, Orion, and Tucker.