On March 14, 2023, JP Morgan downgraded their outlook for Ovintiv (NYSE:OVV) from Overweight to Neutral.

Analyst Price Forecast Suggests 74.56% Upside

As of March 15, 2023, the average one-year price target for Ovintiv is $64.57. The forecasts range from a low of $50.50 to a high of $82.95. The average price target represents an increase of 74.56% from its latest reported closing price of $36.99.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Ovintiv is $12,780MM. The projected annual non-GAAP EPS is $15.19.

Ovintiv Declares $0.25 Dividend

On February 27, 2023 the company declared a regular quarterly dividend of $0.25 per share ($1.00 annualized). Shareholders of record as of March 15, 2023 will receive the payment on March 31, 2023. Previously, the company paid $0.25 per share.

At the current share price of $36.99 / share, the stock’s dividend yield is 2.70%. Looking back five years and taking a sample every week, the average dividend yield has been 5.01%, the lowest has been 1.44%, and the highest has been 45.05%. The standard deviation of yields is 6.09 (n=237).

The current dividend yield is 0.38 standard deviations below the historical average.

Additionally, the company’s dividend payout ratio is 0.07. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company has not increased its dividend in the last three years.

What are Large Shareholders Doing?

Dodge & Cox holds 21,655K shares representing 8.89% ownership of the company. In it’s prior filing, the firm reported owning 22,145K shares, representing a decrease of 2.26%. The firm decreased its portfolio allocation in OVV by 2.44% over the last quarter.

DODFX – Dodge & Cox International Stock Fund holds 11,500K shares representing 4.72% ownership of the company. No change in the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 7,542K shares representing 3.10% ownership of the company. In it’s prior filing, the firm reported owning 7,603K shares, representing a decrease of 0.81%. The firm increased its portfolio allocation in OVV by 0.99% over the last quarter.

NAESX – Vanguard Small-Cap Index Fund Investor Shares holds 6,396K shares representing 2.63% ownership of the company. In it’s prior filing, the firm reported owning 6,456K shares, representing a decrease of 0.95%. The firm increased its portfolio allocation in OVV by 1.10% over the last quarter.

Hotchkis & Wiley Capital Management holds 5,236K shares representing 2.15% ownership of the company. In it’s prior filing, the firm reported owning 3,227K shares, representing an increase of 38.38%. The firm increased its portfolio allocation in OVV by 59.84% over the last quarter.

What is the Fund Sentiment?

There are 1076 funds or institutions reporting positions in Ovintiv. This is an increase of 91 owner(s) or 9.24% in the last quarter. Average portfolio weight of all funds dedicated to OVV is 0.30%, a decrease of 14.62%. Total shares owned by institutions increased in the last three months by 5.44% to 242,334K shares. The put/call ratio of OVV is 0.50, indicating a bullish outlook.

Ovintiv Background Information
(This description is provided by the company.)

Ovintiv Inc. is a hydrocarbon exploration and production company organized in Delaware and headquartered in Denver, United States. It was founded and headquartered in Calgary, Alberta, under its previous name Encana.

This article originally appeared on Fintel

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