Cenovus Energy Inc. [CVE] Stock trading around $4.10 per share: What’s Next?

Cenovus Energy Inc. [NYSE: CVE] stock went on a downward path that fall over -6.82% on Thursday, amounting to a one-week price increase of more than 12.33%. The company report on November 9, 2020 that Cenovus reaches agreement to accelerate development of its Marten Hills oil assets.

Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE), through a wholly owned partnership, has entered into a definitive agreement to sell its Marten Hills oil assets in northern Alberta to Headwater Exploration Inc. for initial cash and common share equity consideration of approximately $100 million.

Total consideration paid to Cenovus consists of $35 million in cash and 50 million common shares of Headwater, plus 15 million share purchase warrants. Each warrant will entitle the holder to acquire one Headwater common share for a period of three years following the completion of the transaction at an exercise price of $2 per share. Upon closing, Kam Sandhar, Senior Vice-President, Conventional and Sarah Walters, Senior Vice-President, Corporate Services will represent Cenovus on the Board of Directors of Headwater. In addition to the initial consideration, Headwater has agreed to a Gross Overriding Royalty (GORR) agreement that gives Cenovus the opportunity to benefit from future development of the Clearwater formation at Marten Hills. Headwater has committed to spending at least $100 million on the acquired lands by the end of 2022. The sale is expected to close on or about December 22, 2020, subject to customary closing conditions.

Over the last 12 months, CVE stock dropped by -55.68%. The average equity rating for CVE stock is currently 2.50, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $5.13 billion, with 1.23 billion shares outstanding and 1.02 billion shares in the current float. Compared to the average trading volume of 6.60M shares, CVE stock reached a trading volume of 6935895 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on Cenovus Energy Inc. [CVE]:

Stifel have made an estimate for Cenovus Energy Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on October 27, 2020. The new note on the price target was released on October 26, 2020, representing the official price target for Cenovus Energy Inc. stock.

The Average True Range (ATR) for Cenovus Energy Inc. is set at 0.25, with the Price to Sales ratio for CVE stock in the period of the last 12 months amounting to 0.46. The Price to Book ratio for the last quarter was 0.39, with the Price to Cash per share for the same quarter was set at 0.25. Price to Free Cash Flow for CVE in the course of the last twelve months was 12.54 with Quick ratio for the last quarter at 0.80.

CVE Stock Performance Analysis:

Cenovus Energy Inc. [CVE] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 12.33. With this latest performance, CVE shares gained by 4.86% in over the last four-week period, additionally plugging by 10.51% over the last 6 months – not to mention a drop of -55.68% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for CVE stock in for the last two-week period is set at 55.54, with the RSI for the last a single of trading hit 58.91, and the three-weeks RSI is set at 53.52 for Cenovus Energy Inc. [CVE]. The present Moving Average for the last 50 days of trading for this stock 3.91, while it was recorded at 4.15 for the last single week of trading, and 4.49 for the last 200 days.

Insight into Cenovus Energy Inc. Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and Cenovus Energy Inc. [CVE] shares currently have an operating margin of +8.79 and a Gross Margin at +10.53. Cenovus Energy Inc.’s Net Margin is presently recorded at +10.87.

Return on Total Capital for CVE is now 6.52, given the latest momentum, and Return on Invested Capital for the company is 8.19. Return on Equity for this stock inclined to 11.97, with Return on Assets sitting at 6.09. When it comes to the capital structure of this company, Cenovus Energy Inc. [CVE] has a Total Debt to Total Equity ratio set at 44.87. Additionally, CVE Total Debt to Total Capital is recorded at 30.97, with Total Debt to Total Assets ending up at 23.78. Long-Term Debt to Equity for the company is recorded at 43.85, with the Long-Term Debt to Total Capital now at 30.27.

Reflecting on the efficiency of the workforce at the company, Cenovus Energy Inc. [CVE] managed to generate an average of $929,267 per employee. Receivables Turnover for the company is 17.26 with a Total Asset Turnover recorded at a value of 0.56.Cenovus Energy Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.80 and a Current Ratio set at 1.40.


With the latest financial reports released by the company, Cenovus Energy Inc. posted -0.04/share EPS, while the average EPS was predicted by analysts to be reported at -0.06/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 33.30%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for CVE.

Cenovus Energy Inc. [CVE] Insider Position Details

There are presently around $3,720 million, or 73.10% of CVE stock, in the hands of institutional investors. The top three institutional holders of CVE stocks are: CONOCOPHILLIPS with ownership of 208,000,000, which is approximately 0% of the company’s market cap and around 0.10% of the total institutional ownership; CAPITAL RESEARCH GLOBAL INVESTORS, holding 106,420,580 shares of the stock with an approximate value of $436.32 million in CVE stocks shares; and FMR LLC, currently with $378.75 million in CVE stock with ownership of nearly 0.25% of the company’s market capitalization.

Positions in Cenovus Energy Inc. stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 90 institutional holders increased their position in Cenovus Energy Inc. [NYSE:CVE] by around 111,315,142 shares. Additionally, 132 investors decreased positions by around 117,018,558 shares, while 44 investors held positions by with 678,955,489 shares. The mentioned changes placed institutional holdings at 907,289,189 shares, according to the latest SEC report filing. CVE stock had 27 new institutional investments in for a total of 35,476,082 shares, while 43 institutional investors sold positions of 25,568,552 shares during the same period.

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