Athabasca Oil (TSE:ATH) Stock Rating Lowered by TD

Athabasca Oil (TSE:ATH) was downgraded by stock analysts at TD from a “hold” rating to a “tender” rating in a research report issued to clients and investors on Tuesday, BayStreet reports. They currently have a C$12.00 target price on the oil and gas exploration company’s stock, up from their previous target price of C$11.00. TD’s target price would suggest a potential downside of 1.48% from the company’s current price.

Several other equities analysts also recently commented on ATH. Desjardins set a C$12.50 target price on Athabasca Oil and gave the stock a “hold” rating in a research report on Friday, July 17th. Royal Bank Of Canada set a C$12.00 price objective on Athabasca Oil and gave the company a “sector perform” rating in a report on Thursday, September 10th. Finally, BMO Capital Markets downgraded shares of Athabasca Oil from an “outperform” rating to a “hold” rating and set a C$12.50 target price on the stock. in a research note on Wednesday, September 16th. Three equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of C$11.61.

Athabasca Oil Stock Performance

Shares of ATH traded up C$0.17 during mid-day trading on Tuesday, hitting C$12.18. The company’s stock had a trading volume of 13,476,992 shares, compared to its average volume of 2,597,266. The stock’s 50-day moving average is C$10.60 and its two-hundred day moving average is C$10.85. The firm has a market capitalization of C$5.86 billion, a PE ratio of 25.91, a price-to-earnings-growth ratio of -0.51 and a beta of 0.10. The company has a debt-to-equity ratio of 10.95, a quick ratio of 1.24 and a current ratio of 1.90. Athabasca Oil has a one year low of C$6.11 and a one year high of C$12.86.

Athabasca Oil (TSE:ATH) last issued its quarterly earnings results on Thursday, July 30th. The oil and gas exploration company reported C$0.13 earnings per share (EPS) for the quarter. The firm had revenue of C$306.54 million for the quarter. Athabasca Oil had a return on equity of 12.57% and a net margin of 17.68%. As a group, sell-side analysts anticipate that Athabasca Oil will post 0.5403473 EPS for the current year.

Insider Buying and Selling at Athabasca Oil

In related news, insider Athabasca Oil Corporation bought 49,500 shares of the business’s stock in a transaction on Tuesday, September 22nd. The shares were purchased at an average price of C$10.14 per share, with a total value of C$501,930.00. Following the completion of the purchase, the insider owned 742,100 shares of the company’s stock, valued at C$7,524,894. This represents a 7.15% increase in their position. Over the last 90 days, insiders acquired 1,150,600 shares of company stock valued at $12,167,863. Corporate insiders own 0.24% of the company’s stock.

More Athabasca Oil News

Here are the key news stories impacting Athabasca Oil this week:

• Positive Sentiment: Cenovus will pay C$12.00 per Athabasca share, representing a 14% premium to Athabasca’s 20-day volume-weighted average price. Consideration will consist of 65% cash and 35% Cenovus shares, although shareholders may elect their preferred mix subject to allocation limits. Athabasca Oil Announces Agreement to Be Acquired by Cenovus Energy
• Positive Sentiment: The transaction gives Athabasca investors a substantial cash component while retaining potential exposure to Cenovus through the share consideration. It also places a floor under ATH’s valuation, subject to deal completion and movements in Cenovus’s stock price.
• Positive Sentiment: Cenovus expects the acquisition to expand its oil-sands footprint and add roughly 45,000 barrels of oil equivalent per day of production. The deal would also give Cenovus full control of certain Duvernay assets and is intended to generate operating and scale benefits. Cenovus Strikes C$5.7B Deal to Buy Athabasca Oil
• Neutral Sentiment: The transaction requires customary regulatory, court and shareholder approvals. Until closing, ATH remains exposed to completion risk and fluctuations in Cenovus’s share price, which affects the value of the stock component.
• Negative Sentiment: Reports indicate Cenovus shares weakened on investor concerns about the debt and financing burden created by the acquisition. Those concerns primarily affect CVE, but a prolonged decline in Cenovus’s stock could reduce the value of Athabasca shareholders’ share-based consideration. Cenovus Tumbles as Athabasca Deal Raises Debt Concerns

Athabasca Oil Company Profile

Athabasca Oil Corporation is a Canadian energy company with a focused strategy on the development of thermal and light oil assets. Situated in Alberta’s Western Canadian Sedimentary Basin, the Company has amassed a significant land base of extensive, high quality resources. Athabasca’s light oil assets are held in a private subsidiary (Duvernay Energy Corporation) in which Athabasca owns a 70% equity interest. Athabasca’s common shares trade on the TSX under the symbol ‘ATH’.