Ovintiv (NYSE:OVV) Shares Gap Down on Analyst Downgrade

Ovintiv Inc. (NYSE:OVV) gapped down before the market opened on Monday after Zacks Research downgraded the stock from a strong-buy rating to a hold rating. The stock had previously closed at $57.45, but opened at $54.30. Ovintiv shares last traded at $54.2130, with a volume of 189,081 shares changing hands.

A number of other equities research analysts also recently weighed in on OVV. Wells Fargo & Company raised their price target on Ovintiv from $55.00 to $57.00 and gave the company an “equal weight” rating in a report on Thursday, May 14th. JPMorgan Chase & Co. began coverage on Ovintiv in a report on Wednesday, February 25th. They set an “overweight” rating and a $58.00 price target for the company. National Bank Financial raised their price target on Ovintiv from $80.00 to $82.00 and gave the company an “outperform” rating in a report on Tuesday, May 12th. Roth Mkm raised their price target on Ovintiv from $42.00 to $50.00 and gave the company a “neutral” rating in a report on Tuesday, February 24th. Finally, TD Cowen boosted their price objective on shares of Ovintiv from $58.00 to $60.00 and gave the stock a “buy” rating in a research report on Tuesday, March 17th. Fourteen research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $63.00.

Ovintiv News Roundup

Here are the key news stories impacting Ovintiv this week:

• Positive Sentiment: Zacks Research lifted earnings estimates across multiple future periods for Ovintiv, suggesting expectations for improved profitability and cash flow. Ovintiv analyst updates
• Positive Sentiment: Recent commentary says Ovintiv’s stronger execution and cleaner balance sheet support the stock’s rally, reinforcing investor confidence in the company’s financial footing. Ovintiv up 38% in 6 months article
• Neutral Sentiment: Despite the higher estimates, Zacks still rates Ovintiv as a “Hold,” and one note says expectations may already be stretched, which could limit near-term upside. Ovintiv rating downgrade report

Hedge Funds Weigh In On Ovintiv

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Rathbones Group PLC acquired a new position in shares of Ovintiv during the 1st quarter worth about $330,000. NewEdge Advisors LLC raised its holdings in shares of Ovintiv by 34,635.4% in the 1st quarter. NewEdge Advisors LLC now owns 61,829 shares of the company’s stock valued at $3,670,000 after purchasing an additional 61,651 shares during the period. Carlson Capital L.P. raised its holdings in shares of Ovintiv by 60.3% in the 1st quarter. Carlson Capital L.P. now owns 34,306 shares of the company’s stock valued at $2,036,000 after purchasing an additional 12,906 shares during the period. Bank of America Corp DE raised its holdings in shares of Ovintiv by 52.4% in the 1st quarter. Bank of America Corp DE now owns 1,233,202 shares of the company’s stock valued at $73,203,000 after purchasing an additional 424,125 shares during the period. Finally, Edgestream Partners L.P. bought a new position in Ovintiv in the 1st quarter valued at about $4,107,000. 83.81% of the stock is owned by institutional investors and hedge funds.

Ovintiv Stock Performance

The company’s fifty day simple moving average is $57.55 and its two-hundred day simple moving average is $50.11. The stock has a market capitalization of $15.06 billion, a P/E ratio of 17.29 and a beta of 0.53. The company has a debt-to-equity ratio of 0.48, a quick ratio of 0.56 and a current ratio of 0.56.

Ovintiv (NYSE:OVV) last announced its earnings results on Monday, May 11th. The company reported $2.00 EPS for the quarter, topping the consensus estimate of $1.85 by $0.15. The company had revenue of $2.40 billion for the quarter, compared to analysts’ expectations of $2.38 billion. Ovintiv had a net margin of 8.51% and a return on equity of 13.14%. As a group, equities analysts forecast that Ovintiv Inc. will post 8.17 EPS for the current year.

Ovintiv Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th will be given a $0.30 dividend. The ex-dividend date is Monday, June 15th. This represents a $1.20 dividend on an annualized basis and a yield of 2.2%. Ovintiv’s dividend payout ratio (DPR) is currently 38.71%.

Ovintiv Company Profile

Ovintiv Inc is a North American energy company focused on the exploration, development and production of oil, natural gas and natural gas liquids. Formerly known as Encana Corporation, the company rebranded as Ovintiv in January 2020 and established its headquarters in Denver, Colorado. Ovintiv’s upstream portfolio spans multiple unconventional resource plays, reflecting a strategy centered on high-return projects and disciplined capital allocation.

The company’s core business activities include the acquisition and development of acreage in major shale basins across the United States and Canada.