Investors Buy High Volume of Suncor Energy Put Options (NYSE:SU)

Suncor Energy Inc. (NYSE:SU) (TSE:SU) was the target of some unusual options trading activity on Wednesday. Stock investors bought 28,315 put options on the stock. This represents an increase of approximately 2,998% compared to the typical volume of 914 put options.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on SU shares. JPMorgan Chase & Co. raised shares of Suncor Energy from a “neutral” rating to an “overweight” rating and boosted their target price for the company from $46.15 to $54.00 in a research note on Tuesday. Wall Street Zen downgraded Suncor Energy from a “buy” rating to a “hold” rating in a report on Sunday, December 28th. Zacks Research lowered Suncor Energy from a “strong-buy” rating to a “hold” rating in a research report on Tuesday. Wells Fargo & Company initiated coverage on Suncor Energy in a research report on Friday, October 17th. They set an “equal weight” rating for the company. Finally, Royal Bank Of Canada reaffirmed an “outperform” rating and set a $65.00 target price on shares of Suncor Energy in a research note on Friday, October 3rd. Two research analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $55.67.

Suncor Energy Stock Down 1.4%

SU opened at $49.80 on Friday. The company has a market capitalization of $59.44 billion, a PE ratio of 16.33 and a beta of 0.46. The company has a debt-to-equity ratio of 0.19, a current ratio of 1.35 and a quick ratio of 0.85. Suncor Energy has a fifty-two week low of $30.79 and a fifty-two week high of $50.82. The business has a 50-day moving average of $45.11 and a 200-day moving average of $41.99.

Suncor Energy (NYSE:SU) (TSE:SU) last announced its quarterly earnings results on Tuesday, November 4th. The oil and gas producer reported $1.07 EPS for the quarter, beating the consensus estimate of $0.85 by $0.22. The business had revenue of $9.04 billion during the quarter, compared to analysts’ expectations of $8.82 billion. Suncor Energy had a return on equity of 13.01% and a net margin of 10.61%.During the same quarter in the previous year, the business posted $1.48 EPS. Equities research analysts forecast that Suncor Energy will post 3.42 EPS for the current fiscal year.

Suncor Energy Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, December 24th. Stockholders of record on Wednesday, December 3rd were issued a dividend of $0.60 per share. The ex-dividend date was Wednesday, December 3rd. This represents a $2.40 dividend on an annualized basis and a dividend yield of 4.8%. This is an increase from Suncor Energy’s previous quarterly dividend of $0.41. Suncor Energy’s payout ratio is 56.39%.

Hedge Funds Weigh In On Suncor Energy

Hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. raised its stake in Suncor Energy by 3.1% during the 2nd quarter. Vanguard Group Inc. now owns 54,631,516 shares of the oil and gas producer’s stock valued at $2,046,442,000 after purchasing an additional 1,632,247 shares during the last quarter. Artisan Partners Limited Partnership increased its holdings in shares of Suncor Energy by 0.4% during the 3rd quarter. Artisan Partners Limited Partnership now owns 33,868,775 shares of the oil and gas producer’s stock worth $1,417,029,000 after purchasing an additional 145,800 shares during the period. Dodge & Cox raised its position in shares of Suncor Energy by 0.3% during the third quarter. Dodge & Cox now owns 27,471,954 shares of the oil and gas producer’s stock valued at $1,148,602,000 after buying an additional 70,300 shares during the last quarter. The Manufacturers Life Insurance Company lifted its stake in shares of Suncor Energy by 3.2% in the second quarter. The Manufacturers Life Insurance Company now owns 20,911,602 shares of the oil and gas producer’s stock valued at $779,788,000 after buying an additional 641,354 shares during the period. Finally, Principal Financial Group Inc. grew its position in Suncor Energy by 0.6% during the third quarter. Principal Financial Group Inc. now owns 18,854,921 shares of the oil and gas producer’s stock worth $789,213,000 after buying an additional 106,765 shares in the last quarter. 67.37% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Suncor Energy

Here are the key news stories impacting Suncor Energy this week:

• Positive Sentiment: JPMorgan upgraded Suncor, providing near-term support from a major bank analyst — this can attract buyers and help limit downside. Suncor Energy (NYSE:SU) Stock Rating Upgraded by JPMorgan Chase & Co.
• Neutral Sentiment: Market write-ups are debating whether recent reassessment of Suncor creates a valuation opportunity; these pieces may encourage value-focused investors but don’t change near-term catalysts. Has The Reassessment Of Suncor Energy (TSX:SU) Created A Valuation Opportunity?
• Neutral Sentiment: Wells Fargo assigned a “hold” to Suncor, another neutral/ cautious signal that may blunt the impact of upgrades. Suncor Energy (SU) Gets a Hold from Wells Fargo
• Negative Sentiment: Zacks Research downgraded Suncor from “strong-buy” to “hold,” reducing buy-side conviction from that research house and likely contributing to selling pressure. Zacks.com
• Negative Sentiment: Unusually large put-option activity: investors bought ~28,315 Suncor put contracts (a ~2,998% rise over typical put volume). Heavy put demand can reflect bearish bets or hedging by longs and likely amplified downside movement in the stock today. Investors Buy High Volume of Suncor Energy Put Options (NYSE:SU)
• Negative Sentiment: Suncor was ordered to pay ~CAD 160,000 to a former shift supervisor after dismissal — a reputational/legal cost that is immaterial to the company’s balance sheet but adds a modest near-term headline risk. ‘Tunnel vision’: Suncor ordered to pay $160,000 to ex-shift supervisor

About Suncor Energy

Suncor Energy Inc is a Canadian integrated energy company headquartered in Calgary, Alberta. The company’s operations span the full oil and gas value chain, with principal activities in oil sands development and production, conventional exploration and production, refining, distribution and retail marketing of petroleum products. Suncor supplies crude, synthetic crude and refined fuels as well as related products and services to commercial and consumer markets.

Upstream, Suncor is a major developer and operator of oil sands projects in Alberta, using both mining and in situ technologies to produce bitumen and synthetic crude.