Cenovus Energy Inc. [CVE] gain 89.57% so far this year. What now?

Cenovus Energy Inc. [NYSE: CVE] loss -0.17% or -0.02 points to close at $11.45 with a heavy trading volume of 11815198 shares. The company report on September 28, 2021 that Cenovus and Headwater announce increase to previously announced bought deal secondary offering of Headwater common shares.

Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) (“Cenovus” or the “Selling Shareholder”) and Headwater Exploration Inc. (TSX: HWX) (“Headwater” or the “Company”) announced that, due to strong demand, they have agreed with the syndicate of underwriters led by Peters & Co. Limited and BMO Capital Markets to increase the size of the bought deal secondary offering (the “Offering”) announced on September 27, 2021. Cenovus, through its wholly owned subsidiary, Cenovus Marten Hills Partnership (the “Partnership”), will now sell 45,000,000 common shares of the Company (the “Common Shares”) at a price of $4.55 per Common Share (the “Offering Price”) for total gross proceeds to the Selling Shareholder of $204,750,000 (the “Offering”). The Selling Shareholder has granted the underwriters an option to purchase an additional 5,000,000 Common Shares (approximately 11% of the Common Shares issued under the Offering) at the Offering Price exercisable to cover over-allotments and for market stabilization purposes in whole or in part at any time until 30 days after the closing. The Company will not receive any of the proceeds from the Offering or the over-allotment option, if exercised.

Cenovus currently holds, indirectly through the Partnership, 50,000,000 Common Shares, representing approximately 24.7% of the issued and outstanding Common Shares and 15,000,000 purchase warrants exercisable at $2.00 per Common Share until December 2, 2023. Following the closing of the Offering, Cenovus will indirectly hold 5,000,000 Common Shares (no Common Shares assuming full exercise of the over-allotment option), representing approximately 2.5% of the issued and outstanding Common Shares 0.0% assuming full exercise of the over-allotment option) and 15,000,000 warrants to purchase Common Shares. Assuming exercise of the warrants held by Cenovus, following closing of the Offering, Cenovus would indirectly hold 20,000,000 Common Shares 15,000,000 Common Shares assuming full exercise of the over-allotment option), representing approximately 9.2% of the issued and outstanding Common Shares 6.9% assuming full exercise of the over-allotment option).

It opened the trading session at $11.40, the shares rose to $11.52 and dropped to $11.15, the range by which the price of stock traded the whole day. The daily chart for CVE points out that the company has recorded 42.95% gains over the past six months. However, it is still -263.49% lower than its most recent low trading price.

If we look at the average trading volume of 8.90M shares, CVE reached to a volume of 11815198 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.

Morgan Stanley have made an estimate for Cenovus Energy Inc. shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on October 07, 2021. The new note on the price target was released on July 19, 2021, representing the official price target for Cenovus Energy Inc. stock.

The Average True Range (ATR) for Cenovus Energy Inc. is set at 0.44, with the Price to Sales ratio for CVE stock in the period of the last 12 months amounting to 1.05. The Price to Book ratio for the last quarter was 1.25, with the Price to Cash per share for the same quarter was set at 0.43. Price to Free Cash Flow for CVE in the course of the last twelve months was 11.31 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 6.22. With this latest performance, CVE shares gained by 29.82% in over the last four-week period, additionally plugging by 42.95% over the last 6 months – not to mention a rise of 184.12% 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 77.87, with the RSI for the last a single of trading hit 82.95, and the three-weeks RSI is set at 73.13 for Cenovus Energy Inc. [CVE]. The present Moving Average for the last 50 days of trading for this stock 8.90, while it was recorded at 11.13 for the last single week of trading, and 8.10 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 $11,461 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 $2.15 billion in CVE stocks shares; and FMR LLC, currently with $803.65 million in CVE stock with ownership of nearly -18.639% 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 November and at the time of the November reporting period, where 145 institutional holders increased their position in Cenovus Energy Inc. [NYSE:CVE] by around 95,471,487 shares. Additionally, 90 investors decreased positions by around 122,616,314 shares, while 48 investors held positions by with 782,849,674 shares. The mentioned changes placed institutional holdings at 1,000,937,475 shares, according to the latest SEC report filing. CVE stock had 48 new institutional investments in for a total of 20,979,376 shares, while 26 institutional investors sold positions of 11,988,816 shares during the same period.

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