Cenovus Energy (TSE:CVE) Sets New 12-Month Low - What's Next?

Cenovus Energy Inc. (TSE:CVE) recently experienced a significant drop, hitting a new 12-month low of C$20.16 during mid-day trading on Monday. The stock eventually traded at C$20.50, with a notable trading volume of 3,157,287 shares. This decline follows a previous closing price of C$21.02.

Recent Analyst Ratings

Several analysts have recently issued reports on CVE. For instance, Raymond James raised their target price for Cenovus Energy from C$32.00 to C$33.00 as noted in a report from December 13th. Conversely, Jefferies Financial Group reduced their price target from C$32.00 to C$30.00 the following Thursday. Additionally, Royal Bank of Canada cut their target from C$28.00 to C$26.00 on January 14th, while National Bankshares lowered their price from C$29.00 to C$28.00, maintaining an "outperform" rating. TD Securities also adjusted their target down from C$31.00 to C$29.00, emphasizing a "buy" rating. Overall, eight research analysts currently endorse a buy rating for the stock, which boasts a consensus target price of C$30.33 according to MarketBeat.

Cenovus Energy Performance Metrics

As of late, Cenovus Energy's stock has declined by 2.2%. The company's fifty-day moving average stands at C$21.61, while the two-hundred-day moving average is C$23.32. Financially, Cenovus Energy displays a quick ratio of 1.00 and a current ratio of 1.66, with a debt-to-equity ratio of 33.34. The company's market capitalization is C$38.24 billion, with a price-to-earnings ratio of 8.19 and a PEG ratio of 0.09. The stock has a beta of 2.63, indicating higher volatility compared to the market.

Quarterly Earnings Results

Cenovus Energy reported its quarterly earnings on October 31st, disclosing earnings per share (EPS) of C$0.42, which fell short of the consensus estimate of C$0.46 by C$0.04. The company recorded a return on equity of 16.69% and a net margin of 8.54%. Comparatively, the same quarter in the previous year yielded an EPS of $0.97. Analysts anticipate that Cenovus Energy Inc. will generate an average of 2.26 EPS for the current fiscal year.

Dividend Announcement

Recently, Cenovus Energy announced a quarterly dividend that was distributed on Tuesday, December 31st. Shareholders registered on that date received a dividend of C$0.18 per share, equating to an annualized dividend of C$0.72 and a yield of 3.50%. The ex-dividend date for this payment was December 13th, and the company maintains a dividend payout ratio of 28.69%.

Insider Activity

In recent insider transactions, Cenovus Energy reported that an insider purchased 44,700 shares on December 2nd for C$22.07 each, totaling C$986,658.63. Senior Officer Jeffery George Lawson also acquired 5,000 shares on December 27th at C$21.17 each, amounting to a total of C$105,832.00. In the past ninety days, insiders have bought a total of 54,800 shares valued at C$1,203,070. It is noteworthy that corporate insiders hold 32.03% of the company's stock.

Company Overview

Cenovus Energy is an integrated oil company that focuses on enhancing value through the development of its oil sands assets. The company is also involved in the production of conventional crude oil, natural gas liquids, and natural gas in Alberta, Canada, alongside its refining operations in the U.S. In 2020, Cenovus averaged a net upstream production of 472,000 barrels of oil equivalent per day and estimates holding 6.7 billion barrels of oil equivalent in proven and probable reserves.

Cenovus, Stock, Analysis