TSE:OVV
Ovintiv (OVV-T)
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Technical Analysis
Buy, Sell or Hold?
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Apr 16, 2025, 12:00 amThis summary was created by AI, based on 1 opinions in the last 12 months.
Ovintiv (OVV-T) has strategically refocused its operations on the Montney region while making a significant push into U.S. markets, including Utah and the Permian Basin. Since 2022, it has experienced price stability like many energy stocks, yet it boasts a commendable free cash flow yield of 15%. The company holds valuable assets, although it finds itself in an uncertain phase as it evolves by changing its name and expanding in the U.S. market, which may not resonate with Canadian energy investors. Despite these challenges, Ovintiv is recognized for its operational effectiveness and is led by a capable CEO, although it is not the top choice among some energy experts.
Natural gas (59%) play in the US. Went off the radar of Canadian investors. Good deal here. Q1 free cashflow beat by 16%, lower operating expenses, modestly higher liquids. Buybacks. At 3.8x, cheaper than peers at 5.5x. Decent production, flat cashflow per share. Balance sheet a bit more indebted than peers.
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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Premium contentPremium contentOVV 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)Premium contentThe 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.
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 2025-08-29, Ovintiv (OVV-T) stock closed at a price of $57.86.
OVV is generating over a $1 billion in cash flow, allowing the company to buyback shares, retire debt and still see cash reserves grow according to recently reported earnings. The company continues to integrate assets into their prolific Montney portfolio. It trades at book value and 19x earnings. Its dividend has been growing at over 25% annually over the past 5 years. We recommend setting a stop-loss at $47, looking to achieve $74 -- upside potential of 28%. Yield 2.8%
(Analysts’ price target is $74.55)