Cenovus Energy Inc. [CVE] moved up 4.60: Why It’s Important



Cenovus Energy Inc. [NYSE: CVE] gained 4.60% or 0.74 points to close at $16.81 with a heavy trading volume of 18315402 shares. The company report on February 8, 2022 that Cenovus announces 2021 fourth-quarter and full-year results.

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Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) delivered record oil sands production in the fourth quarter of 2021, contributing to total upstream output of more than 825,000 barrels of oil equivalent per day (BOE/d)1 and almost 792,000 BOE/d1 for the full year. The company generated fourth-quarter cash from operating activities of $2.2 billion and adjusted funds flow of $1.9 billion. With free funds flow of $1.1 billion in the quarter, and proceeds from recent divestitures, net debt was below $9.6 billion at year end, a reduction of more than $1.4 billion from the end of the third quarter and $3.5 billion in 2021 following the acquisition of Husky Energy. Total long-term debt was $12.4 billion as at December 31, 2021, down nearly $1.7 billion from January 1, 2021, and expected to decrease by approximately US$384 million on February 9 when Cenovus redeems the remaining principal amount of its notes due in 2023 and 2024. As part of its plan to enhance shareholder returns, Cenovus continues to buy back common shares under its previously announced Normal Course Issuer Bid (NCIB) and as of February 7 had repurchased approximately 26 million common shares at a volume weighted price of $16.31 per share.

“In our first year as a combined company we delivered exceptional operational performance at our upstream business, successfully integrated the assets acquired in the Husky transaction and aggressively reduced debt, creating a stronger company,” said Alex Pourbaix, Cenovus President & Chief Executive Officer. “We exceeded our expected transaction synergies and enhanced shareholder returns, doubling our quarterly dividend and commencing our share buyback program. In addition, we’re well positioned to consider future opportunities to further enhance returns for our shareholders.”.

It opened the trading session at $16.02, the shares rose to $16.83 and dropped to $15.92, the range by which the price of stock traded the whole day. The daily chart for CVE points out that the company has recorded 75.65% gains over the past six months. However, it is still -134.78% lower than its most recent low trading price.

If we look at the average trading volume of 13.03M shares, CVE reached to a volume of 18315402 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 $16.14 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 2.00. 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 0.62, with the Price to Sales ratio for CVE stock in the period of the last 12 months amounting to 0.87. The Price to Book ratio for the last quarter was 1.84. Price to Free Cash Flow for CVE in the course of the last twelve months was 12.65 with Quick ratio for the last quarter at 1.10.

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 9.65. With this latest performance, CVE shares gained by 11.55% in over the last four-week period, additionally plugging by 75.65% over the last 6 months – not to mention a rise of 115.51% 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 63.33, with the RSI for the last a single of trading hit 67.65, and the three-weeks RSI is set at 61.54 for Cenovus Energy Inc. [CVE]. The present Moving Average for the last 50 days of trading for this stock 15.33, while it was recorded at 16.21 for the last single week of trading, and 11.62 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 +10.55 and a Gross Margin at +12.38. Cenovus Energy Inc.’s Net Margin is presently recorded at +1.27.

Return on Equity for this stock inclined to 2.91, with Return on Assets sitting at 1.33.

Cenovus Energy Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.10 and a Current Ratio set at 1.60.

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

There are presently around $16,148 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 188,068,828, which is approximately -5.73% of the company’s market cap and around 0.10% of the total institutional ownership; FMR LLC, holding 101,612,813 shares of the stock with an approximate value of $1.71 billion in CVE stocks shares; and CONOCOPHILLIPS, currently with $1.53 billion in CVE stock with ownership of nearly -35.382% of the company’s market capitalization.

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 170 institutional holders increased their position in Cenovus Energy Inc. [NYSE:CVE] by around 138,076,287 shares. Additionally, 119 investors decreased positions by around 168,630,941 shares, while 37 investors held positions by with 653,926,227 shares. The mentioned changes placed institutional holdings at 960,633,455 shares, according to the latest SEC report filing. CVE stock had 73 new institutional investments in for a total of 28,278,977 shares, while 29 institutional investors sold positions of 34,433,338 shares during the same period.