Cenovus Energy Inc (NYSE:CVE) Stock Rated "Buy" by Wall Street Analysts

Key Points

• Cenovus Energy has a consensus “Buy” rating from 15 analysts, including 12 buys and two strong buys. The average 12-month price target is $39.00, above the reported share price of $31.52.
• The company reported quarterly earnings of $1.11 per share, in line with estimates, while revenue of $14.59 billion exceeded expectations and rose 47.9% year over year. Cenovus also declared a quarterly dividend of C$0.22, representing an annualized yield of approximately 2.8%.
• Institutional investors own 51.19% of the stock, with major funds including Bank of America and Manufacturers Life Insurance increasing their stakes and several other investors initiating new positions.

Shares of Cenovus Energy Inc (NYSE:CVE - Get Free Report) TSE: CVE have been assigned a consensus rating of "Buy" from the fifteen brokerages that are currently covering the company, MarketBeat.com reports. One investment analyst has rated the stock with a hold recommendation, twelve have issued a buy recommendation and two have assigned a strong buy recommendation to the company. The average 12-month price target among brokerages that have issued a report on the stock in the last year is $39.00.

Several research analysts recently commented on the stock. Raymond James Financial reiterated an "outperform" rating on shares of Cenovus Energy in a research note on Wednesday, September 16th. UBS Group downgraded shares of Cenovus Energy from a "buy" rating to a "hold" rating in a research note on Wednesday, September 2nd. Wall Street Zen lowered shares of Cenovus Energy from a "strong-buy" rating to a "buy" rating in a report on Saturday, October 3rd. Desjardins raised Cenovus Energy to a "moderate buy" rating in a research report on Thursday, July 16th. Finally, Canadian Imperial Bank of Commerce reiterated an "outperform" rating on shares of Cenovus Energy in a report on Thursday, August 27th.

Cenovus Energy Price Performance

Shares of CVE stock opened at $31.52 on Friday. The stock's 50-day moving average is $31.54 and its 200 day moving average is $28.83. Cenovus Energy has a 1-year low of $15.63 and a 1-year high of $34.16. The company has a debt-to-equity ratio of 0.25, a current ratio of 1.63 and a quick ratio of 1.04. The company has a market cap of $57.42 billion, a P/E ratio of 12.12 and a beta of 0.46.

Cenovus Energy (NYSE:CVE - Get Free Report) TSE: CVE last announced its earnings results on Wednesday, July 29th. The oil and gas company reported $1.11 EPS for the quarter, hitting analysts' consensus estimates of $1.11. The business had revenue of $14.59 billion during the quarter, compared to the consensus estimate of $11.87 billion. Cenovus Energy had a net margin of 12.37% and a return on equity of 21.08%. During the same period in the previous year, the company posted $0.45 earnings per share. The firm's revenue was up 47.9% on a year-over-year basis. Research analysts predict that Cenovus Energy will post 4.04 earnings per share for the current fiscal year.

Cenovus Energy Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 29th. Shareholders of record on Tuesday, September 15th were issued a C$0.22 dividend. This represents a $0.88 annualized dividend and a yield of 2.8%. The ex-dividend date of this dividend was Tuesday, September 15th. Cenovus Energy's dividend payout ratio (DPR) is currently 24.62%.

Hedge Funds Weigh In On Cenovus Energy

Several hedge funds and other institutional investors have recently modified their holdings of CVE. Bank of America Corp DE increased its stake in Cenovus Energy by 111.2% during the 1st quarter. Bank of America Corp DE now owns 22,770,723 shares of the oil and gas company's stock valued at $604,107,000 after purchasing an additional 11,990,405 shares in the last quarter. The Manufacturers Life Insurance Company lifted its stake in shares of Cenovus Energy by 13.6% during the first quarter. The Manufacturers Life Insurance Company now owns 17,730,316 shares of the oil and gas company's stock worth $470,118,000 after buying an additional 2,117,875 shares during the period. GQG Partners LLC acquired a new stake in shares of Cenovus Energy during the second quarter worth $411,552,000. Connor Clark & Lunn Investment Management Ltd. purchased a new stake in shares of Cenovus Energy during the second quarter valued at $355,752,000. Finally, Canada Pension Plan Investment Board acquired a new position in shares of Cenovus Energy in the 2nd quarter valued at $261,811,000. 51.19% of the stock is owned by hedge funds and other institutional investors.

About Cenovus Energy

Cenovus Energy Inc NYSE: CVE is an integrated Canadian energy company headquartered in Calgary, Alberta. The company develops and produces crude oil, natural gas and natural gas liquids, with a significant focus on oil sands operations in Alberta. Its upstream activities include oil sands mining and in situ production, conventional oil and gas production, and the upgrading of heavy crude into synthetic crude oil.

Cenovus also operates in the downstream energy sector through crude oil refining, petroleum upgrading, marketing and distribution.

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