Cenovus Energy Inc. [CVE] is 14.90% higher this YTD. Is it still time to buy?

Cenovus Energy Inc. [NYSE: CVE] gained 2.81% or 0.19 points to close at $6.94 with a heavy trading volume of 14687814 shares. The company report on February 9, 2021 that Cenovus reports 2020 fourth-quarter and full-year results.

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Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) responded to extreme oil price volatility in 2020 by quickly reducing capital spending as well as strategically managing oil sands production and purchasing curtailment credits to achieve increased output when prices were more favourable. The company generated positive free funds flow in the fourth quarter, partially offsetting the impact of low oil prices on its full-year results. Cenovus’s planned combination with Husky Energy, announced in the fourth quarter, closed January 1, 2021. The company exited 2020 with net debt of $7.2 billion.

“In a year of unprecedented challenges for our industry, we demonstrated the flexibility, strength and reliability of our operations by adapting our capital and operating plans, including leveraging the dynamic storage capabilities of our oil sands reservoirs, transportation optionality and marketing activities to help preserve liquidity,” said Alex Pourbaix, Cenovus President & Chief Executive Officer. “We believe our compelling combination with Husky will provide even greater ability to reduce free funds flow volatility and accelerate debt reduction and returns to shareholders.”.

It opened the trading session at $6.94, the shares rose to $7.015 and dropped to $6.793, the range by which the price of stock traded the whole day. The daily chart for CVE points out that the company has recorded 34.76% gains over the past six months. However, it is still -392.2% lower than its most recent low trading price.

If we look at the average trading volume of 9.44M shares, CVE reached to a volume of 14687814 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Cenovus Energy Inc. [CVE]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for CVE shares is $10.85 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on CVE stock is a recommendation set at 2.50. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

CIBC have made an estimate for Cenovus Energy Inc. shares, keeping their opinion on the stock as Sector Outperform, with their previous recommendation back on January 15, 2021. While these analysts kept the previous recommendation, Goldman raised their target price to Buy. The new note on the price target was released on January 14, 2021, representing the official price target for Cenovus Energy Inc. stock.

The Average True Range (ATR) for Cenovus Energy Inc. is set at 0.30, with the Price to Sales ratio for CVE stock in the period of the last 12 months amounting to 1.31. The Price to Book ratio for the last quarter was 0.65, with the Price to Cash per share for the same quarter was set at 0.15. Price to Free Cash Flow for CVE in the course of the last twelve months was 116.93 with Quick ratio for the last quarter at 0.80.

Trading performance analysis for CVE stock

Cenovus Energy Inc. [CVE] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 7.43. With this latest performance, CVE shares gained by 6.44% in over the last four-week period, additionally plugging by 34.76% over the last 6 months – not to mention a drop of -22.11% 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 64.90, with the RSI for the last a single of trading hit 68.93, and the three-weeks RSI is set at 62.84 for Cenovus Energy Inc. [CVE]. The present Moving Average for the last 50 days of trading for this stock 6.14, while it was recorded at 6.63 for the last single week of trading, and 4.83 for the last 200 days.

Cenovus Energy Inc. [CVE]: A deeper dive into fundamental analysis

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 1.30.

Cenovus Energy Inc. [CVE]: An earnings per share (EPS) analysis

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. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Cenovus Energy Inc. go to 3.15%.

An analysis of insider ownership at Cenovus Energy Inc. [CVE]

There are presently around $6,309 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 145,740,343 shares of the stock with an approximate value of $1.01 billion in CVE stocks shares; and HARRIS ASSOCIATES L P, currently with $682.11 million in CVE stock with ownership of nearly 7.868% of the company’s market capitalization.

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Positions in Cenovus Energy Inc. stocks held by institutional investors increased at the end of February and at the time of the February reporting period, where 109 institutional holders increased their position in Cenovus Energy Inc. [NYSE:CVE] by around 94,003,272 shares. Additionally, 110 investors decreased positions by around 78,829,951 shares, while 38 investors held positions by with 736,314,630 shares. The mentioned changes placed institutional holdings at 909,147,853 shares, according to the latest SEC report filing. CVE stock had 40 new institutional investments in for a total of 13,459,746 shares, while 38 institutional investors sold positions of 22,451,435 shares during the same period.

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