Ovintiv (NYSE:OVV) Shares Down 4.2% - Here's What Happened

Key Points

• Ovintiv shares fell 4.2% to about $64.16 in mid-day trading, with volume substantially below the stock’s average. The decline followed quarterly earnings that missed analyst expectations on EPS, despite revenue exceeding estimates.
• Wall Street remains broadly positive, with a consensus “Moderate Buy” rating from 23 analysts and an average price target of $68.75. Recent targets range from $55 to $85.
• Ovintiv declared a quarterly dividend of $0.30 per share, equivalent to $1.20 annually and a 1.9% yield. Institutional investors own 83.81% of the company, while an executive recently sold approximately $491,000 in shares.

Ovintiv Inc. (NYSE:OVV - Get Free Report) traded down 4.2% during mid-day trading on Wednesday . The stock traded as low as $63.94 and last traded at $64.1610. Approximately 268,863 shares changed hands during mid-day trading, a decline of 93% from the average daily volume of 4,016,154 shares. The stock had previously closed at $66.97.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the stock. UBS Group reiterated a "buy" rating and issued a $85.00 price objective on shares of Ovintiv in a research note on Monday. Citigroup boosted their price objective on Ovintiv from $66.00 to $68.00 and gave the company a "buy" rating in a research note on Wednesday, July 29th. Zacks Research cut Ovintiv from a "strong-buy" rating to a "hold" rating in a report on Monday, June 15th. Roth Capital raised their target price on Ovintiv from $50.00 to $55.00 and gave the stock a "neutral" rating in a research note on Wednesday, June 24th. Finally, Truist Financial reaffirmed a "buy" rating and set a $73.00 target price (up from $66.00) on shares of Ovintiv in a report on Monday, July 27th. One research analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $68.75.

Ovintiv Trading Down 6.0%

The company has a debt-to-equity ratio of 0.32, a quick ratio of 1.01 and a current ratio of 1.01. The stock has a market cap of $17.35 billion, a P/E ratio of 17.73 and a beta of 0.53. The stock has a 50-day moving average price of $62.16 and a 200-day moving average price of $58.40.

Ovintiv (NYSE:OVV - Get Free Report) last posted its quarterly earnings data on Thursday, July 23rd. The company reported $1.74 earnings per share for the quarter, missing the consensus estimate of $1.94 by ($0.20). The company had revenue of $3.01 billion during the quarter, compared to the consensus estimate of $2.37 billion. Ovintiv had a return on equity of 14.84% and a net margin of 9.43%. On average, equities research analysts expect that Ovintiv Inc. will post 7.3 EPS for the current year.

Ovintiv Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 29th. Shareholders of record on Tuesday, September 15th will be paid a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date of this dividend is Tuesday, September 15th. Ovintiv's payout ratio is currently 33.90%.

Insider Activity at Ovintiv

In other news, EVP Rachel Moore sold 7,753 shares of the stock in a transaction on Wednesday, August 12th. The shares were sold at an average price of $63.32, for a total value of $490,919.96. Following the transaction, the executive vice president owned 72,530 shares of the company's stock, valued at $4,592,599.60. This represents a 9.66% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 0.85% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new position in shares of Ovintiv during the second quarter worth approximately $1,422,959,000. Millennium Management LLC boosted its stake in shares of Ovintiv by 116.3% in the 4th quarter. Millennium Management LLC now owns 5,692,806 shares of the company's stock valued at $223,101,000 after purchasing an additional 3,060,691 shares in the last quarter. Bank of New York Mellon Corp purchased a new stake in shares of Ovintiv in the 2nd quarter valued at $124,308,000. Bank of America Corp DE bought a new position in shares of Ovintiv during the 2nd quarter valued at $79,475,000. Finally, Arrowstreet Capital Limited Partnership grew its holdings in shares of Ovintiv by 16.9% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 7,880,705 shares of the company's stock valued at $467,874,000 after purchasing an additional 1,137,162 shares during the last quarter. 83.81% of the stock is currently owned by hedge funds and other institutional investors.

Ovintiv Company Profile

Ovintiv Inc is an independent North American energy company engaged primarily in the exploration, development, production and acquisition of oil, condensate, natural gas liquids and natural gas. Its portfolio is focused on unconventional, or shale, resource plays, with operations designed to produce a mix of higher-value liquids and natural gas.

The company's principal assets are located in the United States and Canada. Its U.S. operations include positions in the Permian Basin of west Texas and New Mexico, the Uinta Basin of Utah and the Anadarko Basin of Oklahoma, while its Canadian operations include properties in Alberta's Montney and Duvernay formations.

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