Ritholtz Wealth Management Acquires Significant Stake in Ovintiv

Ritholtz Wealth Management has acquired a new stake in Ovintiv Inc. (NYSE: OVV), purchasing 22,347 shares valued at approximately $850,000. This transaction was disclosed in the firm’s recent filing with the Securities and Exchange Commission. The investment firm joins a wave of institutional investors who have either increased or reduced their stakes in the energy company during the second quarter.

In the first quarter, several notable investors made substantial moves regarding Ovintiv shares. Charles Schwab Investment Management Inc. raised its position by an impressive 383.8%, now holding 9,258,570 shares valued at $396.27 million. AQR Capital Management LLC also increased its holdings by 69.7%, bringing its total to 5,572,732 shares worth $238.51 million. Additionally, Fuller & Thaler Asset Management Inc. and Nuveen LLC each established new positions valued at approximately $56.87 million and $46.60 million, respectively. Amundi further expanded its stake by 86.3%, now owning 2,231,116 shares valued at $87.13 million. Overall, institutional investors and hedge funds control 83.81% of Ovintiv’s stock.

Ovintiv’s Stock Performance and Recent Dividend Announcement

As of the latest trading session, Ovintiv shares opened at $35.94. The company has experienced a volatile year, with a 12-month low of $29.80 and a high of $47.18. The stock has a market capitalization of $9.24 billion and a price-to-earnings (P/E) ratio of 15.90. The current ratio is recorded at 0.43, while the debt-to-equity ratio stands at 0.42.

In addition to its stock performance, Ovintiv announced a quarterly dividend of $0.30 per share, which was paid on September 29, 2023, to investors on record as of September 15, 2023. This results in an annualized dividend of $1.20 and a yield of 3.3%. The company’s dividend payout ratio (DPR) is currently 53.10%.

Wall Street Analysts’ Perspectives

Ovintiv has attracted attention from various analysts, with some upgrading their ratings recently. TD Cowen raised its rating to “strong-buy” on July 7, 2023. Conversely, Barclays revised its price target from $57.00 to $55.00, maintaining an “overweight” rating. Evercore ISI also increased its price objective from $42.00 to $43.00, assigning an “outperform” rating.

However, some analysts have lowered their expectations. Mizuho adjusted its target from $58.00 to $50.00 while keeping an “outperform” rating. Additionally, Roth Capital initiated coverage with a “neutral” rating and a target price of $42.00. Overall, Ovintiv currently holds a consensus rating of “Moderate Buy” with a target price of $51.12, according to data from MarketBeat.com.

Ovintiv Inc., alongside its subsidiaries, is engaged in the exploration, development, production, and marketing of natural gas, oil, and natural gas liquids across the United States and Canada. The company operates through various segments, with significant assets located in regions such as the Permian Basin in Texas and the Montney formation in British Columbia and Alberta.