Ovintiv (NYSE:OVV) Reaches New 12-Month High - Here's What Happened

Key Points

• Ovintiv shares hit a new 52-week high of $53.85 Monday and last traded at $53.64 on roughly 1.69 million shares, up about 4% from the prior close.
• The company posted an earnings beat with Q EPS of $1.39 vs. $0.98 expected and announced a quarterly dividend of $0.30 per share (annualized $1.20, ~2.2% yield).
• Wall Street is broadly positive: the consensus rating is Moderate Buy with a $52.88 target, while UBS raised its target to $69 (buy) and JPMorgan started coverage with an "overweight" $58 objective.

Ovintiv Inc. (NYSE:OVV - Get Free Report) shares hit a new 52-week high during mid-day trading on Monday . The company traded as high as $53.85 and last traded at $53.64, with a volume of 1691216 shares changing hands. The stock had previously closed at $52.25.

Wall Street Analyst Weigh In

Several research firms have weighed in on OVV. Zacks Research upgraded shares of Ovintiv from a "strong sell" rating to a "hold" rating in a report on Tuesday, March 3rd. Wells Fargo & Company raised their price target on shares of Ovintiv from $38.00 to $42.00 and gave the stock an "equal weight" rating in a report on Tuesday, November 18th. UBS Group lifted their price target on shares of Ovintiv from $61.00 to $69.00 and gave the company a "buy" rating in a research report on Thursday. JPMorgan Chase & Co. began coverage on Ovintiv in a research report on Wednesday, February 25th. They issued an "overweight" rating and a $58.00 price objective for the company. Finally, Scotiabank raised Ovintiv from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, February 11th. Two research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $52.88.

Ovintiv Stock Up 4.0%

The business has a 50 day simple moving average of $44.29 and a 200 day simple moving average of $41.30. The company has a market capitalization of $15.39 billion, a price-to-earnings ratio of 11.22, a PEG ratio of 2.83 and a beta of 0.69. The company has a debt-to-equity ratio of 0.39, a current ratio of 0.54 and a quick ratio of 0.54.

Ovintiv (NYSE:OVV - Get Free Report) last issued its quarterly earnings data on Monday, February 23rd. The company reported $1.39 earnings per share for the quarter, beating analysts' consensus estimates of $0.98 by $0.41. The business had revenue of $1.89 billion during the quarter, compared to analysts' expectations of $1.89 billion. Ovintiv had a return on equity of 12.00% and a net margin of 13.94%.During the same period in the previous year, the firm posted ($0.23) earnings per share. As a group, equities analysts predict that Ovintiv Inc. will post 5.59 earnings per share for the current fiscal year.

Ovintiv Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Friday, March 13th will be paid a dividend of $0.30 per share. The ex-dividend date is Friday, March 13th. This represents a $1.20 dividend on an annualized basis and a yield of 2.2%. Ovintiv's dividend payout ratio is 24.79%.

Insider Activity

In other news, Director Howard John Mayson sold 5,000 shares of the firm's stock in a transaction that occurred on Tuesday, March 3rd. The shares were sold at an average price of $52.39, for a total value of $261,950.00. Following the completion of the transaction, the director owned 45,780 shares of the company's stock, valued at approximately $2,398,414.20. This trade represents a 9.85% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, COO Gregory Dean Givens sold 50,000 shares of Ovintiv stock in a transaction that occurred on Friday, December 12th. The shares were sold at an average price of $40.33, for a total transaction of $2,016,500.00. Following the completion of the transaction, the chief operating officer owned 105,867 shares of the company's stock, valued at $4,269,616.11. This trade represents a 32.08% decrease in their position. The disclosure for this sale is available in the SEC filing. 1.70% of the stock is currently owned by corporate insiders.

Institutional Trading of Ovintiv

A number of large investors have recently modified their holdings of the stock. Hsbc Holdings PLC grew its stake in Ovintiv by 37.1% during the 4th quarter. Hsbc Holdings PLC now owns 242,042 shares of the company's stock worth $9,479,000 after purchasing an additional 65,445 shares in the last quarter. River Road Asset Management LLC raised its position in Ovintiv by 0.3% in the 4th quarter. River Road Asset Management LLC now owns 295,720 shares of the company's stock valued at $11,589,000 after purchasing an additional 781 shares in the last quarter. Invesco Ltd. boosted its stake in shares of Ovintiv by 13.4% in the 4th quarter. Invesco Ltd. now owns 1,268,835 shares of the company's stock valued at $49,726,000 after buying an additional 150,053 shares during the period. Vident Advisory LLC grew its position in shares of Ovintiv by 30.4% during the fourth quarter. Vident Advisory LLC now owns 40,249 shares of the company's stock worth $1,577,000 after buying an additional 9,385 shares in the last quarter. Finally, EP Wealth Advisors LLC acquired a new position in shares of Ovintiv during the fourth quarter worth about $524,000. Hedge funds and other institutional investors own 83.81% of the company's stock.

About Ovintiv

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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