Ovintiv (NYSE:OVV) Issues Quarterly Earnings Results

Key Points

• Ovintiv reported quarterly EPS of $1.74, missing analyst expectations of $1.94 by $0.20. Despite the miss, the company posted strong revenue of $3.01 billion, well above the $2.37 billion consensus estimate.
• The stock rose 1.5% in Thursday trading to $61.41, near its 52-week high of $63.46. Ovintiv also showed a dividend yield of 2.0% after paying a quarterly dividend of $0.30 per share.
• Wall Street remains generally positive on Ovintiv, with an average rating of Moderate Buy and a consensus target price of $65.63. Institutional ownership is also high, with hedge funds and other investors holding 83.81% of the stock.

Ovintiv (NYSE:OVV - Get Free Report) posted its quarterly earnings data on Thursday. The company reported $1.74 earnings per share for the quarter, missing the consensus estimate of $1.94 by ($0.20), FiscalAI reports. Ovintiv had a net margin of 8.51% and a return on equity of 13.14%. The company had revenue of $3.01 billion during the quarter, compared to analyst estimates of $2.37 billion.

Ovintiv Trading Up 1.5%

Shares of NYSE:OVV traded up $0.90 during mid-day trading on Thursday, reaching $61.41. The stock had a trading volume of 5,760,560 shares, compared to its average volume of 4,201,244. The firm has a 50 day simple moving average of $56.25 and a two-hundred day simple moving average of $52.89. Ovintiv has a twelve month low of $35.47 and a twelve month high of $63.46. The firm has a market cap of $17.26 billion, a PE ratio of 19.81 and a beta of 0.53. The company has a current ratio of 0.56, a quick ratio of 0.56 and a debt-to-equity ratio of 0.48.

Ovintiv Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th were paid a $0.30 dividend. The ex-dividend date of this dividend was Monday, June 15th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 2.0%. Ovintiv's dividend payout ratio is 38.71%.

Hedge Funds Weigh In On Ovintiv

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Dimensional Fund Advisors LP increased its position in shares of Ovintiv by 17.8% in the 4th quarter. Dimensional Fund Advisors LP now owns 11,059,334 shares of the company's stock valued at $433,418,000 after buying an additional 1,669,469 shares in the last quarter. Charles Schwab Investment Management Inc. grew its stake in Ovintiv by 2.1% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 9,890,315 shares of the company's stock valued at $387,601,000 after acquiring an additional 203,256 shares during the period. Arrowstreet Capital Limited Partnership grew its stake in Ovintiv by 12.4% in the third quarter. Arrowstreet Capital Limited Partnership now owns 5,888,500 shares of the company's stock valued at $237,747,000 after acquiring an additional 649,819 shares during the period. Adage Capital Partners GP L.L.C. raised its position in shares of Ovintiv by 13.5% during the fourth quarter. Adage Capital Partners GP L.L.C. now owns 5,462,109 shares of the company's stock worth $214,060,000 after purchasing an additional 650,000 shares during the period. Finally, AQR Capital Management LLC grew its position in shares of Ovintiv by 263.8% in the 3rd quarter. AQR Capital Management LLC now owns 4,949,637 shares of the company's stock valued at $199,866,000 after purchasing an additional 3,589,030 shares during the period. 83.81% of the stock is owned by institutional investors.

Analyst Ratings Changes

Several research firms have recently commented on OVV. Texas Capital raised shares of Ovintiv to a "strong-buy" rating in a research note on Thursday, June 25th. Zacks Research cut Ovintiv from a "strong-buy" rating to a "hold" rating in a research note on Monday, June 15th. Barclays boosted their target price on Ovintiv from $68.00 to $75.00 and gave the stock an "overweight" rating in a research report on Tuesday, May 26th. UBS Group cut their price target on Ovintiv from $76.00 to $75.00 and set a "buy" rating on the stock in a research note on Thursday, April 9th. Finally, Citigroup decreased their price target on Ovintiv from $70.00 to $66.00 and set a "buy" rating on the stock in a report on Friday, July 17th. One analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, Ovintiv has an average rating of "Moderate Buy" and a consensus target price of $65.63.

Ovintiv Company Profile

Ovintiv Inc is a North American energy company focused on the exploration, development and production of oil, natural gas and natural gas liquids. Formerly known as Encana Corporation, the company rebranded as Ovintiv in January 2020 and established its headquarters in Denver, Colorado. Ovintiv's upstream portfolio spans multiple unconventional resource plays, reflecting a strategy centered on high-return projects and disciplined capital allocation.

The company's core business activities include the acquisition and development of acreage in major shale basins across the United States and Canada.

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