Massachusetts Financial Services Co. has significantly increased its investment in Cenovus Energy Inc, as detailed in its recent Form 13F filing with the Securities and Exchange Commission. During the third quarter of 2023, the firm raised its position by an impressive 37.6%, acquiring an additional 3,945,324 shares. This brings its total holdings to 14,428,074 shares, valued at approximately $245.1 million.
The move by Massachusetts Financial Services reflects a broader trend among institutional investors interested in Cenovus Energy, which operates primarily in the oil and gas sector. Other notable firms have also adjusted their stakes. Sequoia Financial Advisors LLC increased its position by 7.0%, now owning 37,689 shares valued at $640,000 after acquiring an additional 2,466 shares. Similarly, the Maryland State Retirement & Pension System raised its holdings by 0.5%, totaling 280,112 shares worth $4.8 million.
Caldwell Investment Management Ltd. made a new investment in Cenovus Energy valued at approximately $1.9 million. Lodestone Wealth Management LLC and Penbrook Management LLC also expanded their investments, with increases of 1.1% and 3.8%, respectively. Collectively, hedge funds and institutional investors control 51.19% of Cenovus Energy’s stock.
The stock of Cenovus Energy saw a slight decline of 0.4%, opening at $18.02 on Tuesday. The company’s market capitalization stands at $33.94 billion, with a price-to-earnings (P/E) ratio of 14.77. Over the past year, shares have fluctuated between a low of $10.23 and a high of $18.75. The fifty-day simple moving average currently rests at $17.45, while the 200-day average is $16.59.
In terms of financial health, Cenovus Energy has a debt-to-equity ratio of 0.25, a current ratio of 1.73, and a quick ratio of 1.18.
Recent Dividend and Analyst Ratings
Cenovus Energy also announced a quarterly dividend, which was paid on December 31. Stockholders on record as of December 15 received a dividend of $0.20, leading to an annualized dividend of $0.80 and a yield of 4.4%. The company’s payout ratio is noted at 46.72%.
In the analyst community, several firms have recently upgraded their ratings for Cenovus Energy. The Royal Bank of Canada raised its price target from $30.00 to $32.00 and issued an “outperform” rating. Wall Street Zen shifted its assessment from “hold” to “buy,” while Zacks Research upgraded the stock from “hold” to “strong-buy.” Goldman Sachs Group initiated coverage with a “buy” rating and a price target of $20.00.
Overall, four analysts currently rate Cenovus Energy as a “strong buy,” while seven give it a “buy” rating and two maintain a “hold” rating. According to MarketBeat.com, the average rating for the stock is “buy,” with a consensus price target of $27.00.
Overview of Cenovus Energy
Cenovus Energy Inc is a Canadian integrated energy company involved in the exploration, development, and production of crude oil, natural gas liquids, and natural gas. The company is headquartered in Calgary, Alberta, and operates a diverse portfolio that includes oil sands thermal and dilbit assets, as well as conventional oil and gas properties. Cenovus also possesses refining and midstream assets aimed at processing hydrocarbons into finished petroleum products.
Founded as a spin-off from Encana Corporation in 2009, Cenovus has expanded through both organic growth and strategic acquisitions. The company’s ongoing activities in the energy sector position it as a significant player in the market, attracting attention from various institutional investors and analysts alike.
