The Obsidian Energy Ltd. (NYSE:OBE) bulls won the day, but the reality is that the 0 points or 0.91 percent advance gave very little definitive technical indication of where the stock could be headed next. On 14 March, the shares traded at $0.3 with a heavy trade volume of 1.877 million shares. After opening the session at $0.3085, the shares went as high as $0.3085 and as low as $0.293, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $157 million and now has 524.75 million shares outstanding. Obsidian Energy Ltd. (OBE) stock has lost -18.97 percent of market value in 21 trading days.
OBE stock has a trailing 3-year beta of 3.7, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$0.45 a share in the trailing twelve months. The stock’s value has fallen -25.61 percent year to date (YTD) against a decline of -68.13 percent in 12 month’s time. The company’s shares still trade -75.82 percent away from its 1-year high of $1.24 and 7.03 percent up from 52-week low of $0.28. The average consensus rating on the company is 2.2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.
Obsidian Energy Ltd. (OBE) will probably climb 386.67 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $1-month high price target. This represents a whopping 233.33 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $0.5, which represents a return potential of 66.67 percent when compared to the closing price of the stock of $0.3 on Thursday, March 14. The lowest price target for the stock is $0.4 — slightly more than 33.33 percent from OBE’s current share price.
History has shown that shares in Obsidian Energy Ltd. have gone down on 6 different earnings reaction days and are predicted to add 0.05 percent when the company reports upcoming earnings.
The stock is currently hovering around the first support level of $0.29. Below this, the next support is placed in the zone of $0.28. Till the time, the OBE stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 32.55 on daily chart, which may remain a cause for comfort. If the price breaks below $0.28 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $0.31 mark may result into a pull-back move towards $0.32 level.
Further, it is sporting a 0.52 on the Price-to-Sales ratio. Compare this with the industry average P/S of 81.54. 61.3 percent is the gross profit margin for Obsidian Energy Ltd. and operating margin sits at -62 percent. Along with this, the net profit margin is -74.8 percent.