Ovintiv (OVV-T)
TSE:OVV
55.00
8.19
(12.96%) 1d
Financials
Technical Analysis
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Ovintiv (OVV-T) has strategically concentrated its operations on the Montney region while also expanding its presence in the U.S., particularly in Utah and the Permian Basin. Despite experiencing a rangebound performance typical of energy stocks since 2022, the company's free cash-flow yield stands impressively at 15%. While Ovintiv boasts of quality assets, it finds itself in a transitional phase, marked by its name change and newfound U.S. focus, making it less appealing to traditional Canadian energy investors. Nonetheless, the management is praised for being competent, and the prospect of further dividend hikes alongside the return of positive momentum in the sector creates a cautiously optimistic outlook. Overall, while it might not be the top pick for some investors, it represents a solid operational entity within the energy landscape.
They refocused operations on the Montney and are pushing strong into the US (Utah, the Permian Basis). It's been rangebound like all energy stocks since 2022, but the free cash-flow yield is a high 15%. They have quality assets, but are in no-man's land (changing the company name and pushing in the US) and not a focus for Canadian energy investor and lacks the scale of US peers. That said, is a good operator run by a good CEO. Not his preferred energy name.
As a predictive question it is of course difficult. OVV is quite cheap and producing nice free cash flow. Positive momentum has returned to the sector. It has room for further dividend hikes. We would be comfortable holding for a while.
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OVV holds highly productive assets in the Montney, Anadarko and Permian basins. They have worked hard to optimize assets following the acquisition of Newfield in 2019. We like that it has maintained cash reserves while reducing debt and it trades under 2x book value. The dividend is backed by a payout ratio under 10% of cash flow. We recommend placing a stop-loss at $49, looking to achieve $81 -- upside potential of 29%. Yield 2.1%
(Analysts’ price target is $81.05)The former Encanna moved to the US. It was a disappointment to the market. During the pandemic they decided to move it to the US from where the new CEO was managing the assets. See his top picks today. It would be okay to own this as a short term play.
Are their Nova Scotia assets holding back share price? It's very much a U.S. company now and are doing well. They're one of the best producers in the Permian Basin. Has good growth ahead. Pays a modest dividend though the PE is reasonable. Their offshore Nova Scotia assets are hard to read.
VET vs OVV? They are both stocks he would not own. OVV participated well on expected index buying in the US, but they are no longer able to attract US investors based on their share price. It is a non-starter for sure. VET cut the dividend and they changed management, but it will be a long road. They can't sell assets to help reduce debt and they can't raise the dividend. They are in far too many geographical areas and he thinks they have lost focus.
Ovintiv(OVV-T) Rating
Ranking : 4 out of 5
Bullish - Buy Signals / Votes : 1
Neutral - Hold Signals / Votes : 0
Bearish - Sell Signals / Votes : 0
Total Signals / Votes : 1
Ovintiv(OVV-T) Frequently Asked Questions
What is Ovintiv stock symbol?
Ovintiv is a Canadian stock, trading under the symbol OVV-T on the Toronto Stock Exchange (OVV-CT). It is usually referred to as TSX:OVV or OVV-T
Is Ovintiv a buy or a sell?
In the last year, 1 stock analyst published opinions about OVV-T. 1 analyst recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Ovintiv.
Is Ovintiv a good investment or a top pick?
Ovintiv was recommended as a Top Pick by on . Read the latest stock experts ratings for Ovintiv.
Why is Ovintiv stock dropping?
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
Is Ovintiv worth watching?
1 stock analyst on Stockchase covered Ovintiv In the last year. It is a trending stock that is worth watching.
What is Ovintiv stock price?
On 2025-04-03, Ovintiv (OVV-T) stock closed at a price of $55.