Cenovus Energy (TSE:CVE) Posts Earnings Results

Cenovus Energy (TSE:CVE) (NYSE:CVE) announced its quarterly earnings results on Wednesday. The company reported C$1.53 earnings per share (EPS) for the quarter, FiscalAI reports. The firm had revenue of C$17.43 billion during the quarter. Cenovus Energy had a net margin of 12.37% and a return on equity of 21.02%.

Cenovus Energy Trading Up 4.0%

Shares of TSE CVE opened at C$42.48 on Friday. Cenovus Energy has a 1-year low of C$19.97 and a 1-year high of C$44.13. The company has a 50-day moving average of C$38.29 and a two-hundred day moving average of C$34.84. The company has a market cap of C$79.22 billion, a PE ratio of 16.92, a P/E/G ratio of 0.09 and a beta of 0.17. The company has a current ratio of 1.63, a quick ratio of 1.00 and a debt-to-equity ratio of 34.01.

Cenovus Energy Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Tuesday, June 30th were paid a $0.22 dividend. This is a boost from Cenovus Energy’s previous quarterly dividend of $0.20. This represents a $0.88 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date of this dividend was Monday, June 15th. Cenovus Energy’s payout ratio is presently 31.87%.

Insider Activity at Cenovus Energy

In related news, insider Jonathan Michael Mckenzie sold 69,387 shares of the firm’s stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of C$39.51, for a total value of C$2,741,480.37. Following the completion of the sale, the insider owned 1,143,824 shares of the company’s stock, valued at C$45,192,486.24. This trade represents a 5.72% decrease in their ownership of the stock. Also, insider Susan Mary Anderson-Olney sold 19,379 shares of the business’s stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of C$41.84, for a total transaction of C$810,817.36. Following the completion of the transaction, the insider owned 33,275 shares of the company’s stock, valued at C$1,392,226. This trade represents a 36.80% decrease in their position. Insiders have sold 225,897 shares of company stock worth $8,990,614 over the last three months. 32.03% of the stock is owned by insiders.

Analysts Set New Price Targets

Several research firms have recently weighed in on CVE. Desjardins set a C$50.00 price objective on shares of Cenovus Energy and gave the stock a “buy” rating in a report on Friday, July 17th. Royal Bank Of Canada boosted their target price on Cenovus Energy from C$47.00 to C$51.00 and gave the stock an “outperform” rating in a report on Thursday. Scotiabank increased their price target on Cenovus Energy from C$49.00 to C$51.00 and gave the stock a “sector outperform” rating in a research report on Thursday. UBS Group raised their price target on Cenovus Energy from C$36.00 to C$41.00 in a report on Thursday, April 9th. Finally, Scotia lifted their price objective on Cenovus Energy from C$38.00 to C$44.00 and gave the company a “sector outperform” rating in a research report on Thursday, May 7th. Two investment analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Buy” and an average price target of C$43.73.

Key Headlines Impacting Cenovus Energy

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

• Positive Sentiment: Higher profit and production outlook: Cenovus reported second-quarter EPS of C$1.53 and revenue of C$17.43 billion, along with a 9.52% net margin and 15.23% return on equity. Reports also indicate that the company raised its production guidance, reinforcing expectations for stronger operating performance. Cenovus Energy Posts Surge in Q2 Net Earnings YoY, Raises Production Guidance Canada’s Cenovus Energy Posts Higher Second-Quarter Profit
• Positive Sentiment: Widespread analyst optimism: Raymond James raised its target to C$46 and maintained an “outperform” rating; TD lifted its target to C$49 with a “buy” rating; and Royal Bank of Canada and Scotiabank increased their targets to C$51, both implying substantial upside from approximately C$42. JPMorgan also raised its target to C$51. The coordinated revisions suggest analysts see improving earnings, production, or commodity-price prospects for Cenovus Energy. Cenovus Energy Analyst Ratings Cenovus Energy TD Price Target

Cenovus Energy Company Profile

Cenovus Energy is an integrated oil company, focused on creating value through the development of its oil sands assets. The company also engages in production of conventional crude oil, natural gas liquids, and natural gas in Alberta, Canada, with refining operations in the U.S. Net upstream production averaged 472 thousand barrels of oil equivalent per day in 2020, and the company estimates that it holds 6.7 billion boe of proven and probable reserves.