Stock of the Day

October 24, 2023

Ovintiv (OVV)

$65.75
+$1.16 (+1.8%)
Market Cap: $17.79B

About Ovintiv

Ovintiv Inc., together with its subsidiaries, explores, develops, produces, and markets natural gas, oil, and natural gas liquids in the United States and Canada. The company operates through USA Operations, Canadian Operations, and Market Optimization segments. Its principal assets include Permian in west Texas and Anadarko in west-central Oklahoma; and Montney in northeast British Columbia and northwest Alberta. In addition, the company's upstream assets comprise Bakken in northwest North Dakota, and Uinta in central Utah; and Horn River in northeast British Columbia. The company was formerly known as Encana Corporation and changed its name to Ovintiv Inc. in January 2020. Ovintiv Inc. was incorporated in 2020 and is based in Denver, Colorado.

Today's Trend

Ovintiv Inc. (NYSE: OVV) has been trading near its 52-week high after recently increasing, but the latest news is mixed and leans negative. Downward revisions to future earnings estimates and an executive stock sale may limit further upside, while the company’s dividend and favorable analyst coverage provide some support.

  • Ovintiv continues to offer a quarterly dividend of $0.30 per share, equivalent to $1.20 annually and a yield of approximately 1.9%. The dividend has a payout ratio of about 34%, suggesting it is relatively well covered by earnings. Ovintiv insider trading and dividend article
  • Wall Street’s broader view remains constructive, with Ovintiv carrying a “Moderate Buy” consensus rating and an average price target of $66.79, above recent trading levels. Several firms maintain Buy or Outperform ratings. Equities analysts offer predictions for Ovintiv Q4 earnings
  • Analysts are issuing new predictions for Ovintiv’s fourth-quarter earnings, which could influence trading as investors assess the company’s near-term profitability outlook. The provided report does not include a specific consensus estimate. Equities analysts offer predictions for Ovintiv Q4 earnings
  • Zacks Research reduced several earnings forecasts, including Q3 2026 EPS to $1.45 from $1.49, Q2 2027 EPS to $1.24 from $1.50, Q3 2027 EPS to $1.24 from $1.43, and Q4 2027 EPS to $1.27 from $1.43. Its FY2026 estimate of $6.66 is below the broader $6.87 consensus. Ovintiv analyst estimates
  • The most significant revisions were to FY2027 EPS, cut to $5.03 from $5.58, and FY2028 EPS, cut to $6.51 from $7.22. The repeated reductions imply expectations for weaker future profitability and are the clearest near-term pressure on OVV.
  • Executive Vice President Rachel Maureen Moore sold 7,753 shares for approximately $491,000, reducing her holdings by 9.66%. She retained 72,530 shares, so the sale may be personal or routine, but insider selling can weigh on sentiment while the stock trades close to its yearly high. SEC insider transaction filing
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