Traders Buy Large Volume of Put Options on Suncor Energy (NYSE:SU)

Key Points

• Investors purchased a significant volume of over 28,000 put options for Suncor Energy, marking a 2,998% increase compared to average daily trading.
• Wall Street Zen downgraded Suncor Energy's rating from "buy" to "hold", while the consensus rating remains a "Moderate Buy" with an average target price of $66.00.
• Suncor Energy recently announced a quarterly dividend increase to $0.4135 per share, resulting in an annual yield of 4.2% and a payout ratio of 51.08%.

Suncor Energy Inc. (NYSE:SU - Get Free Report) TSE: SU was the target of unusually large options trading activity on Wednesday. Investors purchased 28,315 put options on the company. Thisisanincreaseofapproximately2,998% compared to the typical daily volume of 914 put options.

Suncor Energy Trading Down 0.5%

Suncor Energy stock traded down $0.20 during mid-day trading on Thursday, reaching $39.03. 3,526,213 shares of the company traded hands, compared to its average volume of 3,377,630. The firm's 50 day moving average price is $38.76 and its 200 day moving average price is $37.38. Suncor Energy has a 52-week low of $30.79 and a 52-week high of $41.94. The company has a debt-to-equity ratio of 0.19, a current ratio of 1.26 and a quick ratio of 0.84. The firm has a market capitalization of $47.54 billion, a price-to-earnings ratio of 12.01, a P/E/G ratio of 3.45 and a beta of 0.84.

Suncor Energy (NYSE:SU - Get Free Report) TSE: SU last announced its quarterly earnings results on Tuesday, August 5th. The oil and gas producer reported $0.51 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.50 by $0.01. Suncor Energy had a net margin of 11.35% and a return on equity of 13.21%. The company had revenue of $8.81 billion for the quarter, compared to analysts' expectations of $11.56 billion. During the same quarter in the previous year, the company earned $1.27 earnings per share. On average, analysts anticipate that Suncor Energy will post 3.42 earnings per share for the current fiscal year.

Suncor Energy Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 25th. Investors of record on Thursday, September 4th will be paid a $0.4135 dividend. The ex-dividend date of this dividend is Thursday, September 4th. This is a positive change from Suncor Energy's previous quarterly dividend of $0.41. This represents a $1.65 annualized dividend and a yield of 4.2%. Suncor Energy's payout ratio is currently 51.08%.

Analyst Upgrades and Downgrades

Separately, Wall Street Zen downgraded shares of Suncor Energy from a "buy" rating to a "hold" rating in a research note on Thursday, April 17th. Four investment analysts have rated the stock with a hold rating, five have given a buy rating and two have assigned a strong buy rating to the company's stock. According to MarketBeat.com, Suncor Energy has an average rating of "Moderate Buy" and a consensus price target of $66.00.

Institutional Investors Weigh In On Suncor Energy

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Toronto Dominion Bank grew its position in shares of Suncor Energy by 3.0% in the 4th quarter. Toronto Dominion Bank now owns 19,098,225 shares of the oil and gas producer's stock worth $680,847,000 after buying an additional 552,018 shares during the period. Principal Financial Group Inc. grew its holdings in Suncor Energy by 65.0% in the first quarter. Principal Financial Group Inc. now owns 16,018,129 shares of the oil and gas producer's stock worth $620,136,000 after purchasing an additional 6,311,513 shares during the period. Mackenzie Financial Corp increased its stake in shares of Suncor Energy by 18.6% during the first quarter. Mackenzie Financial Corp now owns 15,377,546 shares of the oil and gas producer's stock valued at $595,398,000 after purchasing an additional 2,410,857 shares in the last quarter. Goldman Sachs Group Inc. increased its stake in shares of Suncor Energy by 83.6% during the first quarter. Goldman Sachs Group Inc. now owns 12,426,008 shares of the oil and gas producer's stock valued at $481,135,000 after purchasing an additional 5,658,880 shares in the last quarter. Finally, Acadian Asset Management LLC lifted its holdings in shares of Suncor Energy by 12,290.9% during the first quarter. Acadian Asset Management LLC now owns 12,418,784 shares of the oil and gas producer's stock valued at $480,760,000 after purchasing an additional 12,318,559 shares during the last quarter. 67.37% of the stock is owned by hedge funds and other institutional investors.

Suncor Energy Company Profile

Suncor Energy Inc operates as an integrated energy company in Canada, the United States, and internationally. It operates through Oil Sands; Exploration and Production; and Refining and Marketing segments. The Oil Sands segment explores, develops, and produces bitumen, synthetic crude oil, and related products.