Cenovus Energy Inc. (TSE:CVE) Receives Average Recommendation of "Buy" from Analysts

Key Points

• Analysts maintain a bullish outlook: Fifteen brokerages give Cenovus Energy an average “Buy” rating, with 12 buys, two strong buys and one hold. The average 1-year price target is C$43.73, while several firms recently raised targets as high as C$51.
• Insiders have sold shares: Company insiders sold 532,304 shares worth approximately C$22.2 million over the past 90 days, including significant sales by Director Alex Pourbaix and insider Jonathan Michael Mckenzie. Insiders still own 32.03% of the company.
• Financial performance and shareholder returns remain solid: Cenovus reported C$1.53 in quarterly EPS and C$17.43 billion in revenue, while increasing its quarterly dividend from $0.20 to $0.22 per share, producing a 2.1% yield.

Shares of Cenovus Energy Inc. (TSE:CVE - Get Free Report) NYSE: CVE have received an average recommendation of "Buy" from the fifteen brokerages that are currently covering the company, MarketBeat Ratings reports. One analyst has rated the stock with a hold recommendation, twelve have assigned a buy recommendation and two have issued a strong buy recommendation on the company. The average 1-year target price among brokerages that have issued ratings on the stock in the last year is C$43.73.

CVE has been the subject of several recent analyst reports. Raymond James Financial raised their target price on shares of Cenovus Energy from C$41.00 to C$46.00 and gave the company an "outperform" rating in a research note on Thursday, July 30th. Royal Bank Of Canada increased their price objective on Cenovus Energy from C$47.00 to C$51.00 and gave the company an "outperform" rating in a report on Thursday, July 30th. TD raised their price objective on Cenovus Energy from C$46.00 to C$49.00 and gave the stock a "buy" rating in a research report on Thursday, July 30th. Gerdes Energy Research upgraded Cenovus Energy from a "neutral" rating to a "buy" rating and boosted their target price for the stock from C$42.00 to C$46.00 in a research note on Monday, June 29th. Finally, JPMorgan Chase & Co. upped their target price on Cenovus Energy from C$45.00 to C$51.00 in a research report on Thursday, July 30th.

Insider Activity

In other news, Director Alex Pourbaix sold 432,731 shares of the company's stock in a transaction dated Wednesday, August 12th. The shares were sold at an average price of C$42.05, for a total transaction of C$18,196,338.55. Following the transaction, the director owned 1,455,996 shares in the company, valued at C$61,224,631.80. This represents a 22.91% decrease in their ownership of the stock. Also, insider Jonathan Michael Mckenzie sold 69,387 shares of the stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of C$39.51, for a total transaction of C$2,741,480.37. Following the completion of the transaction, the insider directly owned 1,143,824 shares of the company's stock, valued at C$45,192,486.24. The trade was a 5.72% decrease in their ownership of the stock. In the last 90 days, insiders have sold 532,304 shares of company stock worth $22,210,763. Corporate insiders own 32.03% of the company's stock.

Cenovus Energy Price Performance

CVE opened at C$42.68 on Friday. The firm has a market capitalization of C$78.71 billion, a PE ratio of 11.86, a price-to-earnings-growth ratio of 0.09 and a beta of 0.16. The company has a debt-to-equity ratio of 34.01, a current ratio of 1.63 and a quick ratio of 1.00. The business's 50-day moving average is C$38.52 and its two-hundred day moving average is C$35.98. Cenovus Energy has a 1 year low of C$20.47 and a 1 year high of C$44.13.

Cenovus Energy (TSE:CVE - Get Free Report) NYSE: CVE last released its quarterly earnings results on Wednesday, July 29th. The company reported C$1.53 EPS for the quarter. Cenovus Energy had a net margin of 12.37% and a return on equity of 21.02%. The business had revenue of C$17.43 billion during the quarter. Research analysts anticipate that Cenovus Energy will post 2.2619279 earnings per share for the current fiscal year.

Cenovus Energy Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 30th were paid a dividend of $0.22 per share. The ex-dividend date was Monday, June 15th. This is a positive change from Cenovus Energy's previous quarterly dividend of $0.20. This represents a $0.88 dividend on an annualized basis and a dividend yield of 2.1%. Cenovus Energy's payout ratio is presently 22.78%.

Cenovus Energy Company Profile

Cenovus Energy is an integrated oil company, focused on creating value through the development of its oil sands assets. The company also engages in production of conventional crude oil, natural gas liquids, and natural gas in Alberta, Canada, with refining operations in the U.S. Net upstream production averaged 472 thousand barrels of oil equivalent per day in 2020, and the company estimates that it holds 6.7 billion boe of proven and probable reserves.

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