Enerflex (TSE:EFX) Stock Surpasses 200-Day Moving Average – What This Means

On February 13, 2025, Enerflex Ltd. (TSE:EFX) reached a significant milestone as its stock price climbed above the 200-day moving average during Wednesday's trading sessions. The stock, known for its resilience, has a 200-day moving average sitting at C$10.73, but it soared to a high of C$13.66 before settling at C$13.40. During this trading day, the share volume hit 410,952, indicating substantial investor interest.

Price Target Updates from Analysts

Recently, several financial analysts have reassessed their outlook on Enerflex shares, resulting in updated price targets. Raymond James boosted its price target from C$12.00 to C$13.75 based on their research released on November 15. Additionally, ATB Capital has raised their target from C$15.00 to C$17.00 in their report dated December 10. Acumen Capital followed suit, adjusting its price objective up from C$12.00 to C$15.00. Similarly, National Bank’s analysis brought their target price from C$11.00 to C$16.00 and classified Enerflex with a “sector perform” rating. TD Securities also increased their price target from C$12.00 to C$15.00 and designated a “buy” rating. Currently, three analysts recommend holding the stock, while four favor buying, positioning it with a consensus rating of “Moderate Buy” and a target price estimate of C$13.47 according to MarketBeat.com.

Performance Metrics of Enerflex

In terms of stock performance, Enerflex maintains a 50-day simple moving average of C$14.09, further affirming the recent upward trend where the 200-day moving average stands at C$10.73. The company has a market capitalization of approximately C$1.66 billion, and it currently reflects a price-to-earnings ratio of -11.65. Notably, its beta value is recorded at 1.71, which indicates higher volatility in comparison to the broader market. The financial health metrics reveal a debt-to-equity ratio of 93.84, alongside a current ratio of 1.27 and a quick ratio at 1.20, suggesting that the company is managing its liabilities effectively.

Dividend Increases Recently Announced

In addition to its stock performance, Enerflex has recently announced an increase in its quarterly dividend, which was payable on January 16. Shareholders of record on that date received a dividend of $0.0375 per share, up from a previous payment of $0.03. This annualizes to a dividend of $0.15, equating to a yield of 1.12%. Despite the increase, Enerflex's current dividend payout ratio stands at -8.70%, reflecting its current earnings performance.

Insider Trading Activity

In related news, there has been insider trading at Enerflex, particularly by Director Joanne Linette Cox, who purchased 2,500 shares on December 11 at an average price of C$13.65 per share. This transaction totaled approximately C$34,115, signifying insiders' confidence in the stock’s future trajectory. Currently, company insiders own 0.49% of Enerflex’s shares, indicating a relatively small insider ownership stake.

Overview of Enerflex Ltd.

Enerflex Ltd. specializes in providing energy infrastructure and energy transition solutions, targeting natural gas markets across North America, Latin America, and the Eastern Hemisphere. The company delivers natural gas compression infrastructure, processing services, and treated water infrastructure under contractual agreements to oil and gas customers. Furthermore, Enerflex offers power generation rentals, custom compression packages for various applications, and after-market mechanical services, amongst other offerings.

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