Paramount Resources (TSE:POU) Sets New 52-Week Low Following Analyst Downgrade

Paramount Resources Ltd. (TSE:POU) shares hit a new 52-week low on Tuesday after Royal Bank of Canada lowered their price target on the stock from C$34.00 to C$19.00. The stock traded as low as C$16.60 and last traded at C$17.07, with a volume of 226184 shares changing hands. The stock had previously closed at C$31.75.

A number of other analysts have also weighed in on the stock. Cormark upgraded shares of Paramount Resources from a “hold” rating to a “moderate buy” rating in a report on Friday, November 15th. Jefferies Financial Group dropped their price objective on Paramount Resources from C$37.00 to C$35.00 and set a “buy” rating for the company in a report on Thursday, December 19th. CIBC boosted their target price on Paramount Resources from C$38.00 to C$39.50 in a research note on Friday, November 15th. Finally, Scotiabank raised their price target on Paramount Resources from C$44.00 to C$46.00 in a research note on Friday, January 17th. Two investment analysts have rated the stock with a hold rating, six have issued a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of C$36.67.

Insider Activity

In related news, Senior Officer Michael S. Han sold 8,320 shares of the firm’s stock in a transaction that occurred on Tuesday, December 24th. The stock was sold at an average price of C$30.86, for a total transaction of C$256,788.48. Also, Senior Officer David Blake Reid sold 68,000 shares of the business’s stock in a transaction on Wednesday, November 20th. The stock was sold at an average price of C$30.90, for a total value of C$2,101,200.00. In the last 90 days, insiders have acquired 103,248 shares of company stock worth $3,231,616. Corporate insiders own 45.36% of the company’s stock.

Paramount Resources Trading Down 42.9 %

The stock’s 50 day moving average is C$30.70 and its 200-day moving average is C$28.86. The company has a market cap of C$2.70 billion, a P/E ratio of 7.42, a PEG ratio of 0.14 and a beta of 3.04. The company has a current ratio of 0.62, a quick ratio of 0.68 and a debt-to-equity ratio of 2.06.

Paramount Resources Cuts Dividend

The firm also recently disclosed a monthly dividend, which will be paid on Friday, February 28th. Investors of record on Friday, February 28th will be issued a $0.05 dividend. The ex-dividend date is Thursday, February 20th. This represents a $0.60 annualized dividend and a yield of 3.31%. Paramount Resources’s payout ratio is 73.70%.

About Paramount Resources

Paramount Resources Ltd. explores for and develops conventional and unconventional petroleum and natural gas reserves and resources in Canada. The company holds interests in the Karr and Wapiti Montney properties covering an area of 109,000 net acres located south of the city of Grande Prairie, Alberta; Kaybob North Duvernay development and natural gas producing properties covering an area of 124,000 net acres located in west-central Alberta; and Willesden Green Duvernay development in central Alberta and shale gas producing properties in the Horn River Basin in northeast British Columbia covering an area of 249,000 net acres.