How does Obsidian Energy Ltd. (OBE) change from a tortoise to a hare?

Obsidian Energy Ltd. (AMEX: OBE) stock fell -2.97% on Tuesday to $6.53 against a previous-day closing price of $6.73. With 0.56 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.65 million shares. During the session, the Oil & Gas E&P company that operates in wider Energy sector, reached to the highest price of $6.81 whereas the lowest price it dropped to was $6.52. The 52-week range on OBE shows that it touched its highest point at $12.52 and its lowest point at $5.21 during that stretch. It currently has a 1-year price target of $10.00. Beta for the stock currently stands at 2.85.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of OBE was down-trending over the past week, with a drop of -1.80%, but this was down by -1.95% over a month. Three-month performance dropped to -23.54% while six-month performance fell -11.76%. The stock gained 11.24% in the past year, while it has lost -1.66% so far this year. A look at the trailing 12-month EPS for OBE yields 2.38 with Next year EPS estimates of 3.43. For the next quarter, that number is 0.61. This implies an EPS growth rate of -49.40% for this year and 25.64% for next year. EPS is expected to grow by 9.30% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 20.60%.

Float and Shares Shorts:

At present, 82.20 million OBE shares are outstanding with a float of 81.76 million shares on hand for trading. On Oct 13, 2022, short shares totaled 0.88 million, which was 1.07% higher than short shares on Sep 14, 2022. In addition to Mr. Stephen Elias Loukas as the firm’s Interim Pres, CEO & Director, Mr. Peter D. Scott serves as its Sr. VP & CFO.

Institutional Ownership:

Through their ownership of 20.83% of OBE’s outstanding shares, institutional investors have minority control over the company. Other institutions hold — of OBE, in contrast to — held by mutual funds. Shares owned by individuals account for –. With a 0.82% stake in OBE, the MDPIM Canadian Equity Pool is the largest stakeholder. A total of 673,047 shares are owned by the mutual fund manager. The New Zealand Superannuation Fund, which owns about 0.70% of OBE stock, is the second-largest Mutual Fund holder. It holds 570,675 shares valued at 3.79 million. First Trust Natural Gas ETF holds 0.56% of the stake in OBE, owning 456,752 shares worth 3.03 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for OBE since 4 analysts follow the stock currently. There are 1 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With OBE analysts setting a high price target of $10.08 and a low target of $8.21, the average target price over the next 12 months is $9.04. Based on these targets, OBE could surge 54.36% to reach the target high and rise by 25.73% to reach the target low. Reaching the average price target will result in a growth of 38.44% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. OBE will report FY 2022 earnings on 02/22/2024. Analysts have provided yearly estimates in a range of $2.36 being high and $1.89 being low. For OBE, this leads to a yearly average estimate of $2.09. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Obsidian Energy Ltd. surprised analysts by -$0.14 when it reported $0.36 EPS against a consensus estimate of $0.49. The surprise factor in the prior quarter was $0.23. Based on analyst estimates, the high estimate for the next quarter is $0.46 and the low estimate is $0.33. The average estimate for the next quarter is thus $0.39.

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