Ovintiv (NYSE:OVV) Shares Gap Up – Time to Buy?

Ovintiv Inc. (NYSE:OVV)’s stock price gapped up before the market opened on Wednesday . The stock had previously closed at $59.15, but opened at $63.00. Ovintiv shares last traded at $61.0990, with a volume of 148,646 shares changing hands.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on the stock. Truist Financial reiterated a “buy” rating and issued a $73.00 target price (up from $66.00) on shares of Ovintiv in a report on Monday. Citigroup lifted their price target on shares of Ovintiv from $66.00 to $68.00 and gave the stock a “buy” rating in a research report on Wednesday. Roth Capital upped their price target on Ovintiv from $50.00 to $55.00 and gave the company a “neutral” rating in a report on Wednesday, June 24th. Stephens reiterated a “positive” rating and set a $69.00 price objective on shares of Ovintiv in a research report on Friday, July 24th. Finally, Wells Fargo & Company raised Ovintiv from an “equal weight” rating to an “overweight” rating and raised their price objective for the stock from $57.00 to $80.00 in a research note on Monday, June 22nd. One investment analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $66.89.

Ovintiv Stock Performance

The firm’s fifty day simple moving average is $56.43 and its 200 day simple moving average is $53.84. The company has a market capitalization of $16.99 billion, a price-to-earnings ratio of 17.42 and a beta of 0.53. The company has a debt-to-equity ratio of 0.32, a current ratio of 1.01 and a quick ratio of 1.01.

Ovintiv (NYSE:OVV) last released its quarterly earnings results on Thursday, July 23rd. The company reported $1.74 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.94 by ($0.20). Ovintiv had a net margin of 9.43% and a return on equity of 14.84%. The firm had revenue of $3.01 billion for the quarter, compared to analyst estimates of $2.37 billion. On average, sell-side analysts forecast that Ovintiv Inc. will post 6.87 EPS for the current year.

Ovintiv Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 29th. Shareholders of record on Tuesday, September 15th will be paid a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a yield of 1.9%. The ex-dividend date of this dividend is Tuesday, September 15th. Ovintiv’s payout ratio is 33.90%.

Institutional Trading of Ovintiv

Several hedge funds and other institutional investors have recently modified their holdings of OVV. AQR Capital Management LLC increased its stake in Ovintiv by 263.8% in the 3rd quarter. AQR Capital Management LLC now owns 4,949,637 shares of the company’s stock valued at $199,866,000 after buying an additional 3,589,030 shares during the period. Millennium Management LLC lifted its position in Ovintiv by 116.3% in the 4th quarter. Millennium Management LLC now owns 5,692,806 shares of the company’s stock worth $223,101,000 after buying an additional 3,060,691 shares in the last quarter. Dimensional Fund Advisors LP grew its holdings in shares of Ovintiv by 17.8% during the 4th quarter. Dimensional Fund Advisors LP now owns 11,059,334 shares of the company’s stock valued at $433,418,000 after acquiring an additional 1,669,469 shares in the last quarter. Goldentree Asset Management LP purchased a new position in shares of Ovintiv during the 4th quarter valued at $61,528,000. Finally, Freestone Grove Partners LP increased its stake in shares of Ovintiv by 79.9% in the fourth quarter. Freestone Grove Partners LP now owns 3,074,925 shares of the company’s stock worth $120,506,000 after acquiring an additional 1,365,535 shares during the last quarter. Institutional investors and hedge funds own 83.81% of the company’s stock.

Ovintiv Company Profile

Ovintiv Inc is a North American energy company focused on the exploration, development and production of oil, natural gas and natural gas liquids. Formerly known as Encana Corporation, the company rebranded as Ovintiv in January 2020 and established its headquarters in Denver, Colorado. Ovintiv’s upstream portfolio spans multiple unconventional resource plays, reflecting a strategy centered on high-return projects and disciplined capital allocation.

The company’s core business activities include the acquisition and development of acreage in major shale basins across the United States and Canada.