Cenovus Energy (TSE:CVE) Hits New 1-Year High - Still a Buy?

Key Points

• Cenovus Energy shares reached a new 52-week high of C$46.60 and last traded at C$45.59, up 1.5%, giving the company an approximately C$83.9 billion market capitalization.
• Analyst sentiment is broadly positive: two analysts rate the stock “Strong Buy,” ten rate it “Buy,” and two rate it “Hold.” Several firms raised their targets to between C$49 and C$52, although the consensus target is C$44.44.
• Cenovus reported quarterly EPS of C$1.53 on C$17.43 billion in revenue and declared a quarterly dividend of $0.22 per share, equivalent to an annualized yield of about 1.9%. Recent insider activity was primarily selling, including substantial share disposals by a director and an insider.

Shares of Cenovus Energy Inc. (TSE:CVE - Get Free Report) NYSE: CVE hit a new 52-week high during trading on Tuesday . The company traded as high as C$46.60 and last traded at C$45.59, with a volume of 2603583 shares. The stock had previously closed at C$44.83.

Analyst Ratings Changes

A number of brokerages have issued reports on CVE. TD boosted their price objective on shares of Cenovus Energy from C$46.00 to C$49.00 and gave the company a "buy" rating in a research report on Thursday, July 30th. Gerdes Energy Research raised shares of Cenovus Energy from a "neutral" rating to a "buy" rating and raised their target price for the stock from C$42.00 to C$46.00 in a research report on Monday, June 29th. Canadian Imperial Bank of Commerce lifted their target price on shares of Cenovus Energy from C$48.00 to C$52.00 in a research note on Thursday, August 27th. Royal Bank Of Canada boosted their price target on shares of Cenovus Energy from C$47.00 to C$51.00 and gave the company an "outperform" rating in a research report on Thursday, July 30th. Finally, JPMorgan Chase & Co. increased their price target on shares of Cenovus Energy from C$45.00 to C$51.00 in a research note on Thursday, July 30th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, Cenovus Energy has an average rating of "Buy" and a consensus target price of C$44.44.

Cenovus Energy Trading Up 1.5%

The stock has a market cap of C$83.89 billion, a P/E ratio of 12.64, a PEG ratio of 0.09 and a beta of 0.19. The company has a current ratio of 1.63, a quick ratio of 1.00 and a debt-to-equity ratio of 34.01. The stock's fifty day moving average price is C$41.02 and its 200 day moving average price is C$37.96.

Cenovus Energy (TSE:CVE - Get Free Report) NYSE: CVE last issued its quarterly earnings results on Wednesday, July 29th. The company reported C$1.53 earnings per share (EPS) for the quarter. Cenovus Energy had a net margin of 12.37% and a return on equity of 21.02%. The company had revenue of C$17.43 billion during the quarter. Equities research analysts expect that Cenovus Energy Inc. will post 2.2619279 earnings per share for the current year.

Cenovus Energy Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 29th. Shareholders of record on Tuesday, September 29th will be paid a dividend of $0.22 per share. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $0.88 dividend on an annualized basis and a dividend yield of 1.9%. Cenovus Energy's dividend payout ratio (DPR) is currently 22.78%.

Insider Activity

In related news, Director Alex Pourbaix sold 432,731 shares of the company's stock in a transaction that occurred on Wednesday, August 12th. The stock was sold at an average price of C$42.05, for a total value of C$18,196,338.55. Following the sale, the director owned 1,455,996 shares in the company, valued at C$61,224,631.80. This represents a 22.91% decrease in their position. Also, insider John F. Soini sold 26,223 shares of the firm's stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of C$44.92, for a total value of C$1,177,937.16. Following the transaction, the insider directly owned 2,114 shares of the company's stock, valued at approximately C$94,960.88. This trade represents a 92.54% decrease in their position. Over the last ninety days, insiders sold 601,524 shares of company stock worth $25,546,211. Insiders own 32.03% of the company's stock.

Cenovus Energy Company Profile

Cenovus Energy is an integrated oil company, focused on creating value through the development of its oil sands assets. The company also engages in production of conventional crude oil, natural gas liquids, and natural gas in Alberta, Canada, with refining operations in the U.S. Net upstream production averaged 472 thousand barrels of oil equivalent per day in 2020, and the company estimates that it holds 6.7 billion boe of proven and probable reserves.

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