why Enerplus Corporation [ERF] is a Good Choice for Investors After New Price Target of $16.65


Enerplus Corporation [NYSE: ERF] slipped around -0.72 points on Thursday, while shares priced at $12.15 at the close of the session, down -5.59%. The company report on August 4, 2022 that Enerplus Announces Second Quarter 2022 Results; Increases Return of Capital Framework; Increases Dividend; Updates Guidance and Five-Year Outlook.

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All financial information contained within this news release has been prepared in accordance with U.S. GAAP. This news release includes forward-looking statements and information within the meaning of applicable securities laws. Readers are advised to review the “Forward-Looking Information and Statements” at the conclusion of this news release. Readers are also referred to “Non-GAAP and Other Financial Measures” at the end of this news release for information regarding the presentation of the financial and operational information in this news release, as well as the use of certain financial measures that do not have standard meaning under U.S. GAAP and “Notice Regarding Information Contained in this News Release”, “Non-GAAP Measures” in Enerplus’ second quarter 2022 MD&A for supplementary financial measures, which information is incorporated by reference to this news release. A copy of Enerplus’ 2022 interim and 2021 annual Financial Statements and associated MD&A are or will be available on our website at www.enerplus.com, under our profile on SEDAR at www.sedar.com and on the EDGAR website at www.sec.gov. All amounts in this news release are stated in United States dollars unless otherwise specified.

Enerplus Corporation (“Enerplus” or the “Company”) (TSX: ERF) (NYSE: ERF) today announced financial and operating results for the second quarter of 2022, an increase to its return of capital framework including its dividend, updated 2022 guidance and updates to its five-year outlook. The Company reported second quarter 2022 cash flow from operating activities and adjusted funds flow of $250.9 million and $297.4 million, respectively, compared to $110.5 million and $150.0 million, respectively, in the second quarter of 2021. Cash flow from operating activities and adjusted funds flow increased from the prior year period primarily due to higher realized commodity prices.

Enerplus Corporation stock is now 14.84% up from its year-to-date (YTD) trading value. ERF Stock saw the intraday high of $12.81 and lowest of $12.04 per share. The company’s 52-week high price is 18.58, which means current price is +19.00% above from all time high which was touched on 06/08/22.

Compared to the average trading volume of 2.55M shares, ERF reached a trading volume of 3489186 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Enerplus Corporation [ERF]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for ERF shares is $16.65 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on ERF stock is a recommendation set at 1.90. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Scotiabank have made an estimate for Enerplus Corporation shares, keeping their opinion on the stock as Sector Outperform, with their previous recommendation back on June 08, 2022. The new note on the price target was released on August 26, 2021, representing the official price target for Enerplus Corporation stock.

The Average True Range (ATR) for Enerplus Corporation is set at 0.77, with the Price to Sales ratio for ERF stock in the period of the last 12 months amounting to 1.58. The Price to Book ratio for the last quarter was 4.96, with the Price to Cash per share for the same quarter was set at 0.10.

How has ERF stock performed recently?

Enerplus Corporation [ERF] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -11.44. With this latest performance, ERF shares gained by 1.84% in over the last four-week period, additionally sinking by -0.33% over the last 6 months – not to mention a rise of 112.78% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for ERF stock in for the last two-week period is set at 41.12, with the RSI for the last a single of trading hit 36.85, and the three-weeks RSI is set at 43.40 for Enerplus Corporation [ERF]. The present Moving Average for the last 50 days of trading for this stock 14.07, while it was recorded at 13.22 for the last single week of trading, and 12.15 for the last 200 days.

Enerplus Corporation [ERF]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Enerplus Corporation [ERF] shares currently have an operating margin of +42.41 and a Gross Margin at +46.44. Enerplus Corporation’s Net Margin is presently recorded at +15.81.

Return on Equity for this stock inclined to 45.03, with Return on Assets sitting at 14.56.

Enerplus Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.40 and a Current Ratio set at 0.40.

Earnings analysis for Enerplus Corporation [ERF]

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for ERF. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Enerplus Corporation go to 28.22%.

Insider trade positions for Enerplus Corporation [ERF]

There are presently around $1,483 million, or 28.30% of ERF stock, in the hands of institutional investors. The top three institutional holders of ERF stocks are: KGH LTD with ownership of 12,340,077, which is approximately -5.403% of the company’s market cap and around 1.30% of the total institutional ownership; NINEPOINT PARTNERS LP, holding 10,000,000 shares of the stock with an approximate value of $121.5 million in ERF stocks shares; and ADAGE CAPITAL PARTNERS GP, L.L.C., currently with $111.11 million in ERF stock with ownership of nearly -1.029% of the company’s market capitalization.

Positions in Enerplus Corporation stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 88 institutional holders increased their position in Enerplus Corporation [NYSE:ERF] by around 12,835,974 shares. Additionally, 83 investors decreased positions by around 21,121,481 shares, while 31 investors held positions by with 88,138,778 shares. The mentioned changes placed institutional holdings at 122,096,233 shares, according to the latest SEC report filing. ERF stock had 33 new institutional investments in for a total of 4,628,143 shares, while 26 institutional investors sold positions of 1,085,533 shares during the same period.