Tullow Oil (LON:TLW) Stock Price Up 6.6% - Here's What Happened

Tullow Oil plc (LON:TLW) experienced a significant increase in its stock price, rising by 6.6% during mid-day trading on Tuesday. At one point, the stock reached a high of GBX 21.46 (approximately $0.27) before closing slightly lower at GBX 21.33 (about $0.27). During this trading session, a total of 5,220,506 shares exchanged hands, which represents a 10% increase from the average trading volume of 4,726,858 shares. Prior to this, the stock had closed at GBX 20 ($0.25).

Tullow Oil Price Performance

The company’s financial metrics paint a picture of its current position. Tullow Oil has a debt-to-equity ratio of 457.18, indicating a significant reliance on debt financing. The quick ratio stands at 0.63, while the current ratio is at 0.70, suggesting potential liquidity concerns in covering short-term obligations. Over recent months, the firm has maintained a 50-day simple moving average of GBX 22.33 and a 200-day simple moving average of GBX 25.82. With a market capitalization of £311.42 million, the company's price-to-earnings (P/E) ratio is noted at -450.33, reflecting losses over the last year. Additionally, it has a price-to-earnings-growth (PEG) ratio of -0.19 and a beta of 2.08, indicating a higher volatility compared to the overall market.

Insider Activity at Tullow Oil

In related news, insider Roald Goethe made a significant purchase of the company’s shares. On December 24th, he bought 100,000 shares at an average price of GBX 20 ($0.25) each, culminating in a total investment of £20,000 (around $25,094.10). It's noteworthy that corporate insiders hold approximately 24.59% of the company's stock, suggesting confidence in the company's prospects from those closely associated with the business.

About Tullow Oil

Tullow Oil plc is primarily engaged in oil and gas exploration, development, and production. The company operates mainly in various regions including Africa, Europe, and South America. Tullow Oil was established in 1985 and has its headquarters in London, United Kingdom.

Should you invest $1,000 in Tullow Oil right now?

Before making any investment decisions regarding Tullow Oil, it is important to consider the broader context of the market. Currently, the stock holds a "Sell" rating among market analysts. In fact, a number of top-rated analysts have identified five other stocks as better investment opportunities at present.

Tullow, Oil, Stock