Cenovus Energy Inc. [NYSE: CVE] gained 5.38% or 0.45 points to close at $8.82 with a heavy trading volume of 8135510 shares. The company report on September 14, 2021 that Cenovus announces closing of US$1.25 billion offering of senior notes.
Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) has completed a public offering in the United States (the “Offering”) of US$1,250,000,000 in senior notes, consisting of US$500,000,000 of 2.650% senior unsecured notes due 2032 and US$750,000,000 of 3.750% senior unsecured notes due 2052 (collectively, the “Notes”). The Notes were issued under Cenovus’s short form base shelf prospectus dated September 19, 2019 and a prospectus supplement dated September 9, 2021 filed with securities regulatory authorities in Canada and the United States.
Deleveraging remains a top priority for Cenovus. The net proceeds of the Offering will be used to partially finance the repurchase of certain of the company’s outstanding senior notes pursuant to previously announced tender offers. In the event there are any net proceeds of the Offering not used to finance such repurchase of notes, the company intends to use such net proceeds to reduce indebtedness and for general corporate purposes. The company expects it will meet its interim net debt target of $10 billion within 2021, assuming current commodity prices and foreign exchange rates hold. Longer term, the company is focused on a net debt target of $8 billion or lower.
It opened the trading session at $8.54, the shares rose to $8.84 and dropped to $8.51, the range by which the price of stock traded the whole day. The daily chart for CVE points out that the company has recorded 4.13% gains over the past six months. However, it is still -180.0% lower than its most recent low trading price.
If we look at the average trading volume of 8.85M shares, CVE reached to a volume of 8135510 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.
Credit Suisse have made an estimate for Cenovus Energy Inc. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on July 19, 2021. The new note on the price target was released on June 15, 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 0.84. The Price to Book ratio for the last quarter was 0.97, with the Price to Cash per share for the same quarter was set at 0.41. Price to Free Cash Flow for CVE in the course of the last twelve months was 9.07 with Quick ratio for the last quarter at 0.70.
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 0.68. With this latest performance, CVE shares gained by 4.63% in over the last four-week period, additionally plugging by 4.13% over the last 6 months – not to mention a rise of 114.60% 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 59.60, with the RSI for the last a single of trading hit 64.45, and the three-weeks RSI is set at 56.30 for Cenovus Energy Inc. [CVE]. The present Moving Average for the last 50 days of trading for this stock 8.33, while it was recorded at 8.51 for the last single week of trading, and 7.66 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 -12.19 and a Gross Margin at -9.99. Cenovus Energy Inc.’s Net Margin is presently recorded at -17.99.
Return on Total Capital for CVE is now -5.99, given the latest momentum, and Return on Invested Capital for the company is -8.92. Return on Equity for this stock declined to -13.25, with Return on Assets sitting at -6.81. When it comes to the capital structure of this company, Cenovus Energy Inc. [CVE] has a Total Debt to Total Equity ratio set at 55.78. Additionally, CVE Total Debt to Total Capital is recorded at 35.81, with Total Debt to Total Assets ending up at 27.67. Long-Term Debt to Equity for the company is recorded at 53.95, with the Long-Term Debt to Total Capital now at 34.63.
Reflecting on the efficiency of the workforce at the company, Cenovus Energy Inc. [CVE] managed to generate an average of -$985,910 per employee. Receivables Turnover for the company is 9.98 with a Total Asset Turnover recorded at a value of 0.38.Cenovus Energy Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.70 and a Current Ratio set at 1.20.
An analysis of insider ownership at Cenovus Energy Inc. [CVE]
There are presently around $8,829 million, or 73.10% of CVE stock, in the hands of institutional investors. The top three institutional holders of CVE stocks are: CAPITAL RESEARCH GLOBAL INVESTORS with ownership of 200,918,135, which is approximately -6.89% of the company’s market cap and around 0.10% of the total institutional ownership; CONOCOPHILLIPS, holding 188,080,000 shares of the stock with an approximate value of $1.66 billion in CVE stocks shares; and FMR LLC, currently with $619.06 million in CVE stock with ownership of nearly -18.639% of the company’s market capitalization.
Positions in Cenovus Energy Inc. stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 146 institutional holders increased their position in Cenovus Energy Inc. [NYSE:CVE] by around 95,519,417 shares. Additionally, 88 investors decreased positions by around 122,607,113 shares, while 49 investors held positions by with 782,838,736 shares. The mentioned changes placed institutional holdings at 1,000,965,266 shares, according to the latest SEC report filing. CVE stock had 49 new institutional investments in for a total of 20,990,781 shares, while 26 institutional investors sold positions of 11,988,816 shares during the same period.