National Bankshares Downgrades Cenovus Energy to Sector Perform

Investment analysts from National Bankshares recently downgraded Cenovus Energy (TSE:CVE) from an "outperform" rating to a "sector perform" rating. This decision was communicated to investors in a research note released on Friday. Alongside the downgrade, they reduced their price target for the company's stock from C$28.00 to C$25.00. This new price objective suggests a potential upside of 20.71% based on Cenovus Energy's current market price.

Other recent evaluations from various research firms have also impacted the perception of Cenovus Energy's stock. For instance, Jefferies Financial Group lowered their price target on shares from C$32.00 to C$30.00. Similarly, Royal Bank of Canada adjusted their target price down from C$28.00 to C$26.00. BMO Capital Markets made a similar move, reducing its target from C$28.00 to C$25.00. In contrast, Raymond James took a more optimistic view by increasing their price target from C$32.00 to C$33.00, while TD Securities reduced their target from C$31.00 to C$29.00, while maintaining a "buy" rating for the stock. According to MarketBeat.com, the current average rating for Cenovus Energy among analysts is a "Moderate Buy," with an average price target of C$30.00.

Cenovus Energy Trading Performance

On the trading floor, shares of Cenovus Energy's stock fell by 4.3%, decreasing by C$0.94 during midday trading on Friday, reaching a price of C$20.71. The trading volume for the company was approximately 3,977,973 shares, which is lower than its average volume of 4,858,463. With a market capitalization of C$37.73 billion, Cenovus Energy boasts a price-to-earnings (PE) ratio of 10.21 and a P/E/G ratio of 0.09, along with a beta factor of 2.63. Additionally, the company has a debt-to-equity ratio of 33.59, a quick ratio of 1.00, and a current ratio of 1.59. As of now, Cenovus Energy has a 52-week low of C$20.16 and a 52-week high reaching C$29.96.

Insider Activity at Cenovus Energy

In related news, there have been some recent insider trades at Cenovus Energy. For example, Senior Officer Jeffery George Lawson bought 5,000 shares of the company's stock on December 27th at an average price of C$21.17 per share, totaling approximately C$105,832.00. Additionally, an insider purchase involving 44,700 shares occurred on December 2nd at an average price of C$22.07 per share, amounting to around C$986,658.63. Over the past quarter, insiders have acquired a total of 65,300 shares valued at C$1,427,360, indicating that insiders currently own 32.03% of the company's stock.

Overview of Cenovus Energy

Cenovus Energy is an integrated oil company focused on developing its oil sands assets. The company is also involved in the production of conventional crude oil, natural gas liquids, and natural gas, primarily in Alberta, Canada, alongside its refining operations in the U.S. In 2020, Cenovus Energy's net upstream production averaged 472 thousand barrels of oil equivalent per day, and the company possesses an estimated 6.7 billion barrels of proven and probable reserves.

Downgrade, Investment, Energy