Cenovus Energy (NYSE:CVE) Stock Breaks Below 200-Day Moving Average - Here's Why

Key Points

• Cenovus shares slipped below their 200-day moving average, trading as low as $27.51 versus the average of $27.61, and were down 3%.
• Despite the share-price weakness, the company reported record third-quarter production of 1.024 million barrels of oil equivalent per day and adjusted EPS above expectations.
• Widening Canadian crude discounts may pressure realized prices, though Cenovus called them temporary and said they would not alter production plans; it declared a quarterly dividend of C$0.22 per share.

Shares of Cenovus Energy Inc (NYSE:CVE - Get Free Report) TSE: CVE crossed below its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $27.61 and traded as low as $27.51. Cenovus Energy shares last traded at $27.5490, with a volume of 13,407,719 shares traded.

Cenovus Energy News Roundup

Here are the key news stories impacting Cenovus Energy this week:

• Positive Sentiment: Third-quarter adjusted EPS beat expectations, and production reached a record 1.024 million barrels of oil equivalent per day. Cenovus also generated about C$5.0 billion in adjusted funds flow and C$3.6 billion in free funds flow. Reuters report on Cenovus third-quarter results
• Positive Sentiment: Management highlighted production growth, lower operating costs, refining gains and expansion projects, supporting the company’s growth outlook. Zacks earnings call highlights
• Positive Sentiment: Cenovus declared a quarterly dividend of C$0.22 per share, equivalent to C$0.88 annually. Cenovus third-quarter results and dividend announcement
• Negative Sentiment: Canadian crude discounts widened to their greatest level since 2018, a potential headwind to realized prices. Cenovus called the situation temporary and said it would not change production plans. Report on Canadian crude discounts

Wall Street Analyst Weigh In

CVE has been the subject of a number of research analyst reports. Royal Bank Of Canada lifted their price target on shares of Cenovus Energy from $47.00 to $51.00 and gave the stock an "outperform" rating in a research note on Thursday, July 30th. Scotiabank reiterated an "outperform" rating on shares of Cenovus Energy in a research note on Monday, October 19th. Canadian Imperial Bank of Commerce reissued an "outperform" rating on shares of Cenovus Energy in a report on Thursday, August 27th. Morgan Stanley reissued an "overweight" rating on shares of Cenovus Energy in a report on Wednesday, August 19th. Finally, Zacks Research raised shares of Cenovus Energy from a "hold" rating to a "strong-buy" rating in a research report on Monday, September 28th. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat.com, Cenovus Energy currently has a consensus rating of "Buy" and a consensus target price of $39.00.

Cenovus Energy Trading Down 3.0%

The company has a debt-to-equity ratio of 0.25, a quick ratio of 1.04 and a current ratio of 1.63. The business has a fifty day simple moving average of $32.01 and a 200 day simple moving average of $27.61. The company has a market cap of $50.04 billion, a P/E ratio of 8.13 and a beta of 0.38.

Cenovus Energy Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 31st. Investors of record on Tuesday, December 15th will be given a dividend of C$0.22 per share. This represents a $0.88 annualized dividend and a dividend yield of 3.2%. The ex-dividend date of this dividend is Tuesday, December 15th. Cenovus Energy's dividend payout ratio is currently 17.99%.

Hedge Funds Weigh In On Cenovus Energy

A number of large investors have recently bought and sold shares of the business. Fifth Third Bancorp raised its position in shares of Cenovus Energy by 233.5% in the third quarter. Fifth Third Bancorp now owns 3,622 shares of the oil and gas company's stock valued at $113,000 after purchasing an additional 2,536 shares during the period. Ritholtz Wealth Management boosted its holdings in shares of Cenovus Energy by 11.2% during the 3rd quarter. Ritholtz Wealth Management now owns 23,897 shares of the oil and gas company's stock worth $743,000 after buying an additional 2,401 shares during the period. MFF Capital Investments Ltd bought a new stake in shares of Cenovus Energy during the 3rd quarter worth $4,351,000. Montaka Global Pty Ltd bought a new stake in shares of Cenovus Energy during the 3rd quarter worth $4,973,000. Finally, Point Nemo Capital LLC grew its stake in Cenovus Energy by 5.2% in the 3rd quarter. Point Nemo Capital LLC now owns 48,650 shares of the oil and gas company's stock valued at $1,512,000 after buying an additional 2,413 shares during the last quarter. Institutional investors own 51.19% of the company's stock.

About Cenovus Energy

Cenovus Energy Inc NYSE: CVE is an integrated Canadian energy company engaged in the exploration, development, production, transportation, and marketing of crude oil and natural gas. Its upstream operations include oil sands projects in northern Alberta, as well as conventional oil and natural gas assets in Canada.

The company also operates oil sands upgraders, refineries, and related infrastructure. Through its downstream business, Cenovus produces and markets refined petroleum products, including gasoline, diesel, jet fuel, asphalt, and other products.

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