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

Ovintiv Inc. (NYSE:OVV)’s stock price 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 trading hands.

A number of other research analysts have also weighed in on OVV. Barclays raised their target price on shares of Ovintiv from $68.00 to $75.00 and gave the stock an “overweight” rating in a research note on Tuesday, May 26th. UBS Group decreased their target price on shares of Ovintiv from $76.00 to $75.00 and set a “buy” rating on the stock in a research note on Thursday, April 9th. Morgan Stanley started coverage on shares of Ovintiv in a research note on Friday, March 27th. They issued an “equal weight” rating and a $68.00 target price on the stock. Roth Mkm raised their target price on shares of Ovintiv from $42.00 to $50.00 and gave the stock a “neutral” rating in a research note on Tuesday, February 24th. Finally, Mizuho raised their target price on shares of Ovintiv from $69.00 to $75.00 and gave the stock an “outperform” rating in a research note on Wednesday, May 27th. Fourteen analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat, Ovintiv presently has an average rating of “Moderate Buy” and an average target price 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

Institutional Trading of Ovintiv

A number of hedge funds and other institutional investors have recently made changes to their positions in OVV. AQR Capital Management LLC increased its holdings in shares of Ovintiv by 263.8% during the 3rd quarter. AQR Capital Management LLC now owns 4,949,637 shares of the company’s stock worth $199,866,000 after buying an additional 3,589,030 shares during the last quarter. Millennium Management LLC increased its holdings in Ovintiv by 116.3% in the 4th quarter. Millennium Management LLC now owns 5,692,806 shares of the company’s stock valued at $223,101,000 after purchasing an additional 3,060,691 shares during the last quarter. Dimensional Fund Advisors LP increased its holdings in Ovintiv by 25.8% in the 3rd quarter. Dimensional Fund Advisors LP now owns 9,389,865 shares of the company’s stock valued at $379,165,000 after purchasing an additional 1,927,193 shares during the last quarter. Goldentree Asset Management LP acquired a new stake in Ovintiv in the 4th quarter valued at approximately $61,528,000. Finally, Freestone Grove Partners LP increased its holdings in Ovintiv by 79.9% in the 4th quarter. Freestone Grove Partners LP now owns 3,074,925 shares of the company’s stock valued at $120,506,000 after purchasing an additional 1,365,535 shares during the last quarter. Institutional investors and hedge funds own 83.81% of the company’s stock.

Ovintiv Price Performance

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

Ovintiv (NYSE:OVV) last posted its earnings results on Monday, May 11th. The company reported $2.00 earnings per share for the quarter, beating the consensus estimate of $1.85 by $0.15. Ovintiv had a net margin of 8.51% and a return on equity of 13.14%. The firm had revenue of $2.40 billion during the quarter, compared to the consensus estimate of $2.38 billion. As a group, research analysts predict that Ovintiv Inc. will post 8.17 earnings per share for the current year.

Ovintiv Dividend Announcement

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

About Ovintiv

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.