Royal Bank of Canada has elevated its rating for shares of Ovintiv (NYSE:OVV) from a “sector perform” to an “outperform” rating, according to a research note released to investors on Wednesday. The bank has set a price target of $55.00 for the stock, reflecting increased confidence in Ovintiv’s performance.
Several other financial institutions have also recently reassessed their ratings for Ovintiv. Scotiabank increased its target price from $48.00 to $51.00, maintaining a “sector outperform” rating as of July 11, 2023. Roth Capital initiated coverage on Ovintiv, designating a “neutral” rating with a target price of $42.00.
Citigroup contributed to the positive sentiment by assigning a “buy” rating and a target price of $54.00 in its research report on July 2, 2023. In contrast, Mizuho lowered its price objective from $58.00 to $50.00, while still rating the stock as “outperform.” UBS Group also revised its target price upwards from $51.00 to $52.00, maintaining a “buy” rating on August 20, 2023.
The consensus among analysts indicates a favorable view of Ovintiv, with one analyst issuing a “Strong Buy” rating, thirteen providing a “Buy” rating, four assigning a “Hold” rating, and one issuing a “Sell” rating. As a result, Ovintiv currently holds a consensus rating of “Moderate Buy” with a consensus price target of $51.12 according to MarketBeat.com.
Recent Earnings and Dividend Disclosure
Ovintiv released its latest earnings report on July 24, 2023, revealing earnings per share (EPS) of $1.02 for the quarter. This figure fell short of the consensus estimate of $1.04 by $0.02. The company’s revenue for the quarter was $1.79 billion, which also did not meet analyst expectations of $1.92 billion. Despite the miss, Ovintiv reported a net margin of 6.46% and a return on equity of 14.24%. Analysts project that Ovintiv will achieve an EPS of 5.59 for the current year.
In addition to its earnings report, Ovintiv announced a quarterly dividend of $0.30, which was distributed on September 29, 2023. Shareholders who were on record as of September 15, 2023, received this dividend. The ex-dividend date also fell on September 15, indicating the company’s commitment to returning value to its investors. This translates to an annualized dividend of $1.20 and a dividend yield of 3.3%. Currently, Ovintiv’s dividend payout ratio stands at 53.10%.
Institutional Investment Trends
Institutional investors and hedge funds have shown increased activity regarding Ovintiv shares in recent months. IFP Advisors Inc. reported a significant boost in its stake by 316.7% during the second quarter, resulting in ownership of 846 shares valued at $32,000. Dogwood Wealth Management LLC and HM Payson & Co. also acquired new positions in the company, with investments worth $35,000 and $36,000, respectively.
In the first quarter, Harbour Investments Inc. increased its stake in Ovintiv by 143.8%, now holding 919 shares valued at $39,000. Gen Wealth Partners Inc. similarly raised its stake by 91.8%, owning 1,011 shares valued at $43,000. Overall, institutional ownership in Ovintiv is substantial, with approximately 83.81% of the stock held by institutional investors and hedge funds.
Ovintiv Inc., based in the United States and Canada, focuses on the exploration, development, production, and marketing of natural gas, oil, and natural gas liquids. The company operates through various segments, including USA Operations, Canadian Operations, and Market Optimization, with significant assets in the Permian Basin and Anadarko in the United States, as well as Montney in Canada.
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