Cenovus Energy Inc. [CVE] Stock trading around $18.06 per share: What’s Next?

Cenovus Energy Inc. [NYSE: CVE] stock went on a downward path that fall over -3.32% on Monday, amounting to a one-week price increase of more than 5.61%. The company report on August 8, 2022 that Cenovus Acquiring Outstanding 50% Interest in Toledo Refinery from bp, Will Assume Operatorship.


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Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE), through its U.S. operating business, has reached an agreement to purchase bp’s 50% interest in the bp-Husky Toledo Refinery in Ohio. Cenovus has owned the other 50% of the refinery since its combination with Husky Energy in 2021. Cenovus’s U.S. operating business will assume operatorship from bp upon closing of the transaction, which is expected before the end of 2022, dependent on the satisfaction of closing conditions. Total consideration includes US$300 million in cash, subject to customary closing adjustments, plus the value of inventory. In addition, the parties have signed a multi-year product supply agreement.

“Fully owning the Toledo Refinery provides a unique opportunity to further integrate our heavy oil production and refining capabilities,” said Alex Pourbaix, Cenovus President & Chief Executive Officer. “Operating the refinery will open up additional synergies and capital efficiency opportunities, including connectivity with our nearby Lima Refinery. This transaction solidifies our refining footprint in the U.S. Midwest and increases our ability to capture margin throughout the value chain.”.

Over the last 12 months, CVE stock rose by 119.71%. The one-year Cenovus Energy Inc. stock forecast points to a potential upside of 29.45. The average equity rating for CVE stock is currently 2.00, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $35.38 billion, with 1.97 billion shares outstanding and 1.44 billion shares in the current float. Compared to the average trading volume of 10.18M shares, CVE stock reached a trading volume of 8420132 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]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for CVE shares is $25.60 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.

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 August 11, 2022. While these analysts kept the previous recommendation, Morgan Stanley raised their target price to Overweight. The new note on the price target was released on October 07, 2021, representing the official price target for Cenovus Energy Inc. stock.

The Average True Range (ATR) for Cenovus Energy Inc. is set at 0.90, with the Price to Sales ratio for CVE stock in the period of the last 12 months amounting to 0.73. The Price to Book ratio for the last quarter was 1.76. Price to Free Cash Flow for CVE in the course of the last twelve months was 10.82 with Quick ratio for the last quarter at 1.10.

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 5.61. With this latest performance, CVE shares gained by 10.80% in over the last four-week period, additionally plugging by 13.87% over the last 6 months – not to mention a rise of 119.71% 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 50.63, with the RSI for the last a single of trading hit 52.97, and the three-weeks RSI is set at 49.26 for Cenovus Energy Inc. [CVE]. The present Moving Average for the last 50 days of trading for this stock 18.99, while it was recorded at 17.93 for the last single week of trading, and 16.35 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 +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 1.70.

Cenovus Energy Inc. [CVE] Insider Position Details

There are presently around $19,399 million, or 73.10% of CVE stock, in the hands of institutional investors. The top three institutional holders of CVE stocks are: CAPITAL WORLD INVESTORS with ownership of 122,515,077, which is approximately 330.153% of the company’s market cap and around 0.10% of the total institutional ownership; FMR LLC, holding 109,455,912 shares of the stock with an approximate value of $1.98 billion in CVE stocks shares; and CAPITAL RESEARCH GLOBAL INVESTORS, currently with $1.97 billion in CVE stock with ownership of nearly -9.967% 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 197 institutional holders increased their position in Cenovus Energy Inc. [NYSE:CVE] by around 200,935,560 shares. Additionally, 157 investors decreased positions by around 205,444,427 shares, while 46 investors held positions by with 667,770,705 shares. The mentioned changes placed institutional holdings at 1,074,150,692 shares, according to the latest SEC report filing. CVE stock had 64 new institutional investments in for a total of 63,580,140 shares, while 37 institutional investors sold positions of 39,642,208 shares during the same period.

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