Ovintiv (NYSE:OVV) Shares Gap Down - Here's What Happened

Key Points

• Shares gapped down before trading, falling about 5.8% after the prior close of $55.72 to an open of $52.51 and last trading near $51.84 on volume ~265,511 shares.
• Ovintiv reported a quarterly EPS of $1.39 versus a $0.98 consensus (revenue in line), and analysts remain largely positive with 15 Buy and 6 Hold ratings, an average rating of "Moderate Buy" and an average price target of $60.37.
• The company pays a $0.30 quarterly dividend (annualized $1.20, yield 2.3%), insiders recently trimmed positions (EVP sold 11,582 shares; a director sold 5,000), and institutional investors own roughly 83.8% of the stock.

Ovintiv Inc. (NYSE:OVV - Get Free Report)'s share price gapped down prior to trading on Friday . The stock had previously closed at $55.72, but opened at $52.51. Ovintiv shares last traded at $51.8390, with a volume of 265,511 shares traded.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on OVV shares. Scotiabank lifted their price target on shares of Ovintiv from $58.00 to $65.00 and gave the company a "sector outperform" rating in a research note on Thursday, March 19th. Wells Fargo & Company lifted their price objective on shares of Ovintiv from $42.00 to $54.00 and gave the company an "equal weight" rating in a report on Thursday, March 19th. UBS Group decreased their target price on shares of Ovintiv from $76.00 to $75.00 and set a "buy" rating for the company in a research report on Thursday, April 9th. National Bank Financial lifted their price target on shares of Ovintiv from $56.00 to $58.00 and gave the company an "outperform" rating in a research note on Wednesday, February 25th. Finally, Truist Financial increased their price objective on shares of Ovintiv from $70.00 to $72.00 and gave the stock a "buy" rating in a research note on Monday. Fifteen analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. According to MarketBeat, Ovintiv presently has an average rating of "Moderate Buy" and an average price target of $60.37.

Ovintiv Trading Down 5.8%

The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.54 and a current ratio of 0.54. The stock has a market capitalization of $14.87 billion, a price-to-earnings ratio of 10.85, a price-to-earnings-growth ratio of 1.79 and a beta of 0.59. The business has a fifty day simple moving average of $53.86 and a 200 day simple moving average of $44.42.

Ovintiv (NYSE:OVV - Get Free Report) last posted its earnings results on Monday, February 23rd. The company reported $1.39 earnings per share for the quarter, topping analysts' consensus estimates of $0.98 by $0.41. Ovintiv had a return on equity of 12.00% and a net margin of 13.94%.The company had revenue of $1.89 billion during the quarter, compared to the consensus estimate of $1.89 billion. During the same quarter last year, the firm earned ($0.23) earnings per share. As a group, research analysts expect that Ovintiv Inc. will post 5.59 EPS for the current year.

Ovintiv Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Friday, March 13th were issued a dividend of $0.30 per share. The ex-dividend date of this dividend was Friday, March 13th. This represents a $1.20 annualized dividend and a dividend yield of 2.3%. Ovintiv's dividend payout ratio (DPR) is currently 24.79%.

Insider Activity at Ovintiv

In related news, EVP Meghan Nicole Eilers sold 11,582 shares of the stock in a transaction that occurred on Friday, March 13th. The shares were sold at an average price of $54.78, for a total transaction of $634,461.96. Following the sale, the executive vice president owned 54,092 shares in the company, valued at approximately $2,963,159.76. This trade represents a 17.64% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Howard John Mayson sold 5,000 shares of the firm's stock in a transaction 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 sale, the director directly owned 45,780 shares in the company, valued at approximately $2,398,414.20. This represents a 9.85% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 0.85% of the company's stock.

Institutional Investors Weigh In On Ovintiv

Hedge funds and other institutional investors have recently bought and sold shares of the company. AQR Capital Management LLC grew its holdings in shares of Ovintiv by 263.8% during the third quarter. AQR Capital Management LLC now owns 4,949,637 shares of the company's stock worth $199,866,000 after purchasing an additional 3,589,030 shares in the last quarter. Millennium Management LLC grew its stake in Ovintiv by 116.3% in the 4th quarter. Millennium Management LLC now owns 5,692,806 shares of the company's stock worth $223,101,000 after buying an additional 3,060,691 shares in the last quarter. Dimensional Fund Advisors LP increased its holdings in shares of Ovintiv by 25.8% in the 3rd quarter. Dimensional Fund Advisors LP now owns 9,389,865 shares of the company's stock worth $379,165,000 after buying an additional 1,927,193 shares during the last quarter. Goldentree Asset Management LP bought a new position in shares of Ovintiv in the 4th quarter worth $61,528,000. Finally, Evergreen Capital Management LLC purchased a new stake in shares of Ovintiv during the 3rd quarter valued at $60,866,000. Institutional investors own 83.81% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.