Ovintiv (NYSE:OVV) Announces Earnings Results, Misses Estimates By $0.02 EPS

Key Points

• Ovintiv reported a quarterly earnings per share of $1.02, missing the consensus estimate of $1.04, alongside revenues of $1.79 billion compared to an expected $1.92 billion.
• The company declared a quarterly dividend of $0.30 per share, with an annualized dividend yield of 2.90% and a payout ratio of 53.10%.
• Despite the earnings miss, Ovintiv shares rose 3.5% to $41.40 with analysts maintaining a general positive outlook, reflected in a consensus rating of "Buy".

Ovintiv (NYSE:OVV - Get Free Report) posted its earnings results on Thursday. The company reported $1.02 earnings per share for the quarter, missing the consensus estimate of $1.04 by ($0.02), Zacks reports. Ovintiv had a return on equity of 14.24% and a net margin of 6.46%. The business had revenue of $1.79 billion during the quarter, compared to analysts' expectations of $1.92 billion.

Ovintiv Stock Down 1.5%

NYSE OVV traded down $0.63 during mid-day trading on Wednesday, reaching $42.27. The stock had a trading volume of 3,714,281 shares, compared to its average volume of 3,623,123. Ovintiv has a 1 year low of $29.80 and a 1 year high of $48.35. The company has a fifty day moving average price of $39.29 and a 200 day moving average price of $39.60. The company has a debt-to-equity ratio of 0.42, a current ratio of 0.43 and a quick ratio of 0.43. The stock has a market cap of $10.87 billion, a PE ratio of 18.70, a price-to-earnings-growth ratio of 2.39 and a beta of 1.08.

Ovintiv Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, September 29th. Investors of record on Monday, September 15th will be issued a $0.30 dividend. The ex-dividend date is Monday, September 15th. This represents a $1.20 dividend on an annualized basis and a yield of 2.84%. Ovintiv's payout ratio is currently 53.10%.

Wall Street Analyst Weigh In

OVV has been the subject of a number of recent research reports. Citigroup set a $54.00 price objective on shares of Ovintiv and gave the company a "buy" rating in a research note on Wednesday, July 2nd. The Goldman Sachs Group raised Ovintiv from a "neutral" rating to a "buy" rating and lifted their target price for the company from $47.00 to $51.00 in a report on Tuesday, July 1st. Barclays boosted their price objective on shares of Ovintiv from $55.00 to $57.00 and gave the company an "overweight" rating in a research note on Friday, July 25th. TD Cowen raised shares of Ovintiv to a "strong-buy" rating in a research note on Monday, July 7th. Finally, Morgan Stanley reaffirmed an "overweight" rating and set a $50.00 price objective on shares of Ovintiv in a research note on Tuesday, April 15th. Two investment analysts have rated the stock with a hold rating, thirteen have assigned a buy rating and two have assigned a strong buy rating to the company. According to data from MarketBeat.com, Ovintiv has a consensus rating of "Buy" and an average price target of $53.94.

Institutional Investors Weigh In On Ovintiv

A number of hedge funds have recently added to or reduced their stakes in OVV. Geneos Wealth Management Inc. raised its holdings in Ovintiv by 47.5% in the 1st quarter. Geneos Wealth Management Inc. now owns 1,830 shares of the company's stock worth $78,000 after purchasing an additional 589 shares during the period. Great Lakes Advisors LLC bought a new position in shares of Ovintiv in the first quarter worth about $202,000. Integrated Wealth Concepts LLC raised its stake in shares of Ovintiv by 70.9% in the first quarter. Integrated Wealth Concepts LLC now owns 9,127 shares of the company's stock worth $391,000 after buying an additional 3,788 shares during the period. Finally, Focus Partners Wealth raised its stake in shares of Ovintiv by 49.3% in the first quarter. Focus Partners Wealth now owns 19,282 shares of the company's stock worth $825,000 after buying an additional 6,364 shares during the period. 83.81% of the stock is currently owned by hedge funds and other institutional investors.

About Ovintiv

Ovintiv Inc, together with its subsidiaries, explores, develops, produces, and markets natural gas, oil, and natural gas liquids in the United States and Canada. The company operates through USA Operations, Canadian Operations, and Market Optimization segments. Its principal assets include Permian in west Texas and Anadarko in west-central Oklahoma; and Montney in northeast British Columbia and northwest Alberta.