Suncor Energy (NYSE:SU) Lowered to "Hold" Rating by Zacks Research

Key Points

• Zacks Research downgraded Suncor Energy from “strong buy” to “hold,” while the broader analyst consensus remains “Moderate Buy” with a $71.67 target price.
• Suncor’s shares opened at $62.91, with a market capitalization of approximately $74.28 billion; the stock has traded between $37.76 and $70.29 over the past year.
• Recent company developments were mixed: quarterly earnings exceeded expectations and the dividend was maintained, but management said it is not yet ready to accelerate planned production growth despite a favorable policy backdrop.

Suncor Energy (NYSE:SU - Get Free Report) TSE: SU was downgraded by investment analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a note issued to investors on Tuesday,Zacks.com reports.

Several other equities analysts have also recently weighed in on SU. Wall Street Zen cut shares of Suncor Energy from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 1st. Scotiabank raised shares of Suncor Energy to a "strong-buy" rating in a research report on Friday, June 26th. The Goldman Sachs Group cut shares of Suncor Energy from a "buy" rating to a "neutral" rating and set a $72.00 target price on the stock. in a report on Friday, June 5th. Desjardins upgraded Suncor Energy to a "moderate buy" rating in a report on Thursday, July 16th. Finally, Weiss Ratings raised Suncor Energy from a "buy (b-)" rating to a "buy (b)" rating in a research report on Wednesday, July 29th. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat, Suncor Energy currently has an average rating of "Moderate Buy" and a consensus target price of $71.67.

Suncor Energy Price Performance

NYSE:SU opened at $62.91 on Tuesday. Suncor Energy has a 52-week low of $37.76 and a 52-week high of $70.29. The company has a market cap of $74.28 billion, a P/E ratio of 11.59, a P/E/G ratio of 0.48 and a beta of 0.30. The company has a debt-to-equity ratio of 0.20, a quick ratio of 0.92 and a current ratio of 1.42. The stock's 50-day simple moving average is $60.55 and its 200 day simple moving average is $60.50.

Suncor Energy (NYSE:SU - Get Free Report) TSE: SU last posted its quarterly earnings results on Tuesday, May 5th. The oil and gas producer reported $1.41 earnings per share for the quarter, missing analysts' consensus estimates of $1.45 by ($0.04). The company had revenue of $10.41 billion during the quarter, compared to the consensus estimate of $9.22 billion. Suncor Energy had a net margin of 15.62% and a return on equity of 20.35%. During the same quarter in the prior year, the business earned $1.31 earnings per share. As a group, sell-side analysts forecast that Suncor Energy will post 7.11 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Versant Capital Management Inc lifted its position in Suncor Energy by 418.9% during the second quarter. Versant Capital Management Inc now owns 493 shares of the oil and gas producer's stock worth $26,000 after acquiring an additional 398 shares during the last quarter. Atlantic Edge Private Wealth Management LLC grew its position in shares of Suncor Energy by 54.9% in the fourth quarter. Atlantic Edge Private Wealth Management LLC now owns 635 shares of the oil and gas producer's stock valued at $28,000 after purchasing an additional 225 shares during the last quarter. Headlands Technologies LLC acquired a new position in shares of Suncor Energy in the second quarter valued at approximately $31,000. 1 North Wealth Services LLC bought a new position in shares of Suncor Energy during the fourth quarter worth approximately $32,000. Finally, Accent Capital Management LLC increased its stake in shares of Suncor Energy by 37.5% during the fourth quarter. Accent Capital Management LLC now owns 825 shares of the oil and gas producer's stock worth $37,000 after purchasing an additional 225 shares during the period. Institutional investors and hedge funds own 67.37% of the company's stock.

Key Stories Impacting Suncor Energy

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

• Positive Sentiment: Quarterly earnings beat expectations: Suncor reported second-quarter earnings of C$2.33 per share, above the C$2.14 consensus estimate and well ahead of C$0.71 a year earlier. Revenue reached C$13.41 billion versus the C$11.68 billion estimate, while net profit was reported at approximately C$3.7 billion. Higher crude-price realizations and stronger refining margins drove the improvement. Suncor beats quarterly profit estimates on higher crude realizations, refining margins
• Positive Sentiment: Dividend maintained: Suncor declared a quarterly dividend of C$0.60 per share, payable September 25 to shareholders of record September 4. The annualized payout represents a yield of roughly 3.8%, supporting the stock’s income appeal. Suncor Energy declares dividend
• Neutral Sentiment: Policy backdrop is favorable: Federal and Alberta governments are pursuing reforms intended to support Canadian oil-industry growth. However, the immediate financial benefit remains uncertain. Suncor not ready to speed output growth
• Negative Sentiment: Management is resisting faster production growth: CEO Rich Kruger said Suncor is not yet prepared to accelerate planned output increases despite the pro-oil policy environment. This limits near-term volume upside and may disappoint investors seeking faster growth from the company’s oil-sands assets. Suncor not ready to speed output growth

Suncor Energy Company Profile

Suncor Energy Inc is a Canadian integrated energy company headquartered in Calgary, Alberta. The company's operations span the full oil and gas value chain, with principal activities in oil sands development and production, conventional exploration and production, refining, distribution and retail marketing of petroleum products. Suncor supplies crude, synthetic crude and refined fuels as well as related products and services to commercial and consumer markets.

Upstream, Suncor is a major developer and operator of oil sands projects in Alberta, using both mining and in situ technologies to produce bitumen and synthetic crude.

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.

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