Source Energy Services (TSE:SHLE) Hits New 12-Month Low - Here's Why

On Monday, Source Energy Services Ltd. (TSE:SHLE) experienced a significant decline in its share price, reaching a new 12-month low. The stock dipped as low as C$10.73 during the trading session, with a total volume of 96,941 shares exchanged. This drop followed a previous closing price of C$11.71, indicating a notable decrease in market confidence.

Recent Analyst Ratings

In a recent development, BMO Capital Markets raised its price target for Source Energy Services from C$14.00 to C$16.00. This adjustment was made public in a research report released on November 7th, reflecting the analysts' ongoing reevaluation of the company's market standing.

Performance Overview

The stock currently holds a market capitalization of C$144.45 million, a price-to-earnings ratio of 0.85, and a beta of 2.82. Additionally, Source Energy Services shows a 50-day simple moving average of C$14.32 and a 200-day simple moving average of C$13.98. Financial metrics indicate a quick ratio of 0.22 and a current ratio of 0.61, accompanied by a substantial debt-to-equity ratio of 126.37, which suggests potential financial strains.

Company Background

Source Energy Services Ltd. specializes in the production and distribution of Northern White frac sand, primarily utilized in oil and gas exploration and production activities across Canada and the United States. In addition, the company offers storage and logistics services for various bulk materials related to oil and gas well completions, along with the Sahara system, a mobile sand storage and handling solution designed for wellsites.

Investment Considerations

Considering the current stock performance and market conditions, those contemplating an investment in Source Energy Services should assess various factors. While the company holds a Hold rating from analysts, it's worth noting that top-rated analysts have identified five other stocks they believe present better investment opportunities at this time.

Investors looking for additional insights on investment choices in this sector may want to explore stocks that are being recommended by leading market analysts.

Energy, Stocks, Investment