Cenovus Energy (NYSE:CVE) Upgraded to “Hold” by Zacks Investment Research

Zacks Investment Research upgraded shares of Cenovus Energy (NYSE:CVE) (TSE:CVE) from a sell rating to a hold rating in a research note published on Thursday, Zacks.com reports. They currently have $11.00 price objective on the oil and gas company’s stock.

According to Zacks, “Cenovus Energy completed the strategic acquisition of Husky Energy early this year. The all-stock accord has created the third-biggest energy producer in Canada. The combined entity is expected to have a production capacity of 750 thousand barrels of oil equivalent per day (MBoe/d). In terms of refining and upgrading, the combined entity is now the second-largest in Canada. Hence, Cenovus is well-placed to gain on favorable commodity prices since it has broadened its high-quality oil sand asset portfolio with the Husky Energy acquisition. However, the company’s significant exposure to debt capital is concerning. Although the company’s cash balance can easily clear its short-term borrowings, the integrated energy player’s capability of paying long-term debt is in question, since the coronavirus pandemic is still affecting the firm.”

Several other equities research analysts have also recently commented on the stock. Desjardins raised shares of Cenovus Energy from a hold rating to a buy rating and boosted their price target for the stock from $8.00 to $14.00 in a research report on Friday, March 26th. Credit Suisse Group boosted their price target on shares of Cenovus Energy from C$7.00 to C$13.00 and gave the stock a neutral rating in a research report on Wednesday, June 2nd. Tudor Pickering reissued a buy rating and set a $12.00 price target on shares of Cenovus Energy in a research report on Thursday, April 15th. Scotiabank raised shares of Cenovus Energy from a sector perform rating to an outperform rating in a research report on Thursday, April 15th. Finally, Raymond James raised shares of Cenovus Energy from a market perform rating to an outperform rating in a research report on Tuesday, March 16th. Five investment analysts have rated the stock with a hold rating and thirteen have issued a buy rating to the stock. The company currently has an average rating of Buy and a consensus price target of $10.23.

CVE opened at $10.08 on Thursday. The company has a market cap of $20.34 billion, a PE ratio of -36.00 and a beta of 3.20. Cenovus Energy has a 12 month low of $3.15 and a 12 month high of $10.11. The company has a fifty day moving average of $8.08. The company has a quick ratio of 0.82, a current ratio of 1.36 and a debt-to-equity ratio of 0.60.

Cenovus Energy (NYSE:CVE) (TSE:CVE) last posted its quarterly earnings data on Thursday, May 6th. The oil and gas company reported $0.08 EPS for the quarter, missing the consensus estimate of $0.12 by ($0.04). The company had revenue of $7.52 billion during the quarter, compared to the consensus estimate of $7.32 billion. Cenovus Energy had a negative net margin of 1.76% and a negative return on equity of 6.34%. During the same period in the prior year, the firm posted ($0.12) earnings per share. As a group, equities research analysts predict that Cenovus Energy will post 0.62 EPS for the current fiscal year.

The business also recently declared a quarterly dividend, which will be paid on Wednesday, June 30th. Investors of record on Tuesday, June 15th will be paid a $0.0144 dividend. The ex-dividend date is Monday, June 14th. This represents a $0.06 dividend on an annualized basis and a yield of 0.57%. This is a positive change from Cenovus Energy’s previous quarterly dividend of $0.01.

Several large investors have recently made changes to their positions in CVE. Marshall Wace LLP acquired a new position in shares of Cenovus Energy during the 1st quarter worth approximately $25,000. Fifth Third Bancorp grew its position in shares of Cenovus Energy by 104.9% during the 1st quarter. Fifth Third Bancorp now owns 3,823 shares of the oil and gas company’s stock worth $29,000 after purchasing an additional 1,957 shares in the last quarter. Atlas Capital Advisors LLC acquired a new position in shares of Cenovus Energy during the 1st quarter worth approximately $43,000. Acadian Asset Management LLC acquired a new position in shares of Cenovus Energy during the 1st quarter worth approximately $43,000. Finally, Stratos Wealth Partners LTD. acquired a new position in shares of Cenovus Energy during the 4th quarter worth approximately $60,000. Hedge funds and other institutional investors own 52.82% of the company’s stock.

Cenovus Energy Company Profile

Cenovus Energy Inc, together with its subsidiaries, develops, produces, and markets crude oil, natural gas liquids, and natural gas in Canada, the United States and the Asia Pacific region. The company operates through Oil Sands, Conventional, and Refining and Marketing segments. The Oil Sands segment develops and produces bitumen in northeast Alberta.

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