Cenovus Energy Inc. (NYSE:CVE) has been downgraded by CIBC on January 31 which now rates the stock as Neutral compared with Sector Outperform rating suggested in the past. Analysts at Credit Suisse, started covering the stock on January 28 with a Outperform rating. The stock won favor of Tudor Pickering analysts who expressed their confidence in it using an upgrade from Hold to Buy on December 10. TD Securities analysts came out with bullish views on October 22 when the call was made. They think the stock is now Buy compared to to their prior call for Hold.
Cenovus Energy Inc. (CVE) hit an intraday high Tuesday at $7.88. The shares finished at $7.87, after trading as low as $7.66 earlier in the session. It rose 4.24% in recent trade and currently has a stock-market value of $9.79B. Trading activity significantly weakened as the volume at ready counter decreased to 4,228,638 shares versus 4,290,200 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 4,008,114 shares. The stock is now 27.97% above against its bear-market low of $6.15 on December 26, 2018. It has retreated -45.74% since it’s 52-week high of $11.47 reached in May. Now the market price is up 5.64% on the year and up 11.95% YTD.
CVE’s 50 day simple moving average (SMA 50) price is $7.6 and its 200-day simple moving average (SMA 200) price is $9.11. The company’s stock currently has a total float of 1.02B shares. Its weekly volatility is hovering around 3.4% and felt 3.13% volatility in price over a month. On the upside, the share price will test short term resistance at around $7.95. On a downside, the stock is likely to find some support, which begins at $7.73. The failure to get near-term support could push it to $7.58.
Wall Street’s most bullish Cenovus Energy Inc. (NYSE:CVE) analysts are predicting the share price to blow past $19 per share during the next 12 months. The current median share price forecast by them is $13, suggesting that the stock could increase 65.18% in that time frame. The average price target of $13.41 calls for a nearly 70.39% increase in the stock price.
Moreover, it trades for 14.49 times the next 12 months of expected earnings. Also, it is trading at rather inexpensive levels at just over 0.69x price/book and 0.61x price/sales. Compared to others, Cenovus Energy Inc. is in a different league with regards to profitability, having net margins of -3.4%. To put some perspective around this, the industry’s average net margin is 11.55%. CVE’s ROE is -3.8%, which is also considerably worse than the industry’s ROE of 13.85%. It’s also very liquid in the near term, with a current ratio of 1.3. The stock has a debt/capital of 0.53.
Shares of Cenovus Energy Inc. (CVE) have dropped -10.5% since the company’s last earnings report. Over the past 12 fiscal quarters, Cenovus Energy Inc. (NYSE:CVE) has topped consensus earnings estimates in 4 quarters (33%), missed earnings in 8 quarters (66%), whereas at 0 occasion EPS met analyst expectations. CVE last reported earnings on October 31, 2018 when it released Sep-18 results that receded expectations. The company raked in -$0.03 per share, -100.03% change on the same period last year. That was worse than consensus for $0.21. Revenue for the recent quarter stood at $6.14 billion, up 40% on last year and above the $5.62 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $4.23 billion to $5.95 billion, which should be compared with $4.49 billion generated last year. EPS is seen in a range of -$0.09 to $0.34, against the $0.09 reported a year ago.