Cenovus Energy (TSE:CVE) Sets New 1-Year High - Should You Buy?

Key Points

• Cenovus Energy reached a new 52-week high of C$44.16, up 2.9%, with a market capitalization of approximately C$81.79 billion.
• Analyst sentiment is strongly positive: the stock has a consensus “Buy” rating, supported by two “Strong Buy” and twelve “Buy” ratings. Recent price targets range as high as C$51.
• The company reported C$1.53 in quarterly EPS on C$17.43 billion in revenue and raised its quarterly dividend to C$0.22, or C$0.88 annually. However, insiders sold a combined 532,304 shares during the last quarter.

Cenovus Energy Inc. (TSE:CVE - Get Free Report) NYSE: CVE's stock price hit a new 52-week high during trading on Monday . The company traded as high as C$44.16 and last traded at C$44.13, with a volume of 1701712 shares changing hands. The stock had previously closed at C$43.11.

Wall Street Analyst Weigh In

A number of analysts have issued reports on the company. Scotia raised their price target on Cenovus Energy from C$38.00 to C$44.00 and gave the stock a "sector outperform" rating in a research note on Thursday, May 7th. Gerdes Energy Research raised shares of Cenovus Energy from a "neutral" rating to a "buy" rating and upped their price objective for the company from C$42.00 to C$46.00 in a research note on Monday, June 29th. Royal Bank Of Canada increased their price objective on shares of Cenovus Energy from C$47.00 to C$51.00 and gave the stock an "outperform" rating in a report on Thursday, July 30th. TD raised their target price on shares of 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. Finally, Scotiabank boosted their target price on shares of Cenovus Energy from C$49.00 to C$51.00 and gave the company a "sector outperform" rating in a report on Thursday, July 30th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Buy" and an average price target of C$43.73.

Cenovus Energy Stock Up 2.9%

The firm has a market capitalization of C$81.79 billion, a PE ratio of 12.32, a price-to-earnings-growth ratio of 0.09 and a beta of 0.16. The company has a current ratio of 1.63, a quick ratio of 1.00 and a debt-to-equity ratio of 34.01. The firm has a 50-day moving average of C$38.59 and a two-hundred day moving average of C$36.10.

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

Cenovus Energy Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 30th were paid a $0.22 dividend. The ex-dividend date of this dividend was Monday, June 15th. This represents a $0.88 annualized dividend and a dividend yield of 2.0%. This is an increase from Cenovus Energy's previous quarterly dividend of $0.20. Cenovus Energy's dividend payout ratio is presently 22.78%.

Insider Transactions at Cenovus Energy

In related news, Director Alex Pourbaix sold 30,186 shares of the stock in a transaction that occurred on Wednesday, August 12th. The shares were sold at an average price of C$42.17, for a total transaction of C$1,272,943.62. Following the completion of the sale, the director owned 1,455,996 shares of the company's stock, valued at approximately C$61,399,351.32. This represents a 2.03% decrease in their position. Also, insider Jonathan Michael Mckenzie sold 69,387 shares of the firm's 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 owned 1,143,824 shares in the company, valued at C$45,192,486.24. The trade was a 5.72% decrease in their position. Insiders have sold a total of 532,304 shares of company stock valued at $22,210,763 in the last quarter. Company insiders own 32.03% of the company's stock.

About Cenovus Energy

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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