Zacks Investment Research cut shares of Suncor Energy (NYSE:SU) (TSE:SU) from a hold rating to a strong sell rating in a report published on Monday morning.
According to Zacks, “On account of several headwinds, the investment thesis on Suncor has been downgraded to ‘Strong Sell’. With crude prices taking a beating and Canadian oil differential widening, Suncor delivered a dull show in the last quarter. As it is, pipeline construction in Canada has failed to keep pace with the rising domestic oil, forcing the company to sell their products at a discounted rate. Moreover, Suncor’s major focus is on the production of crude from the Alberta oil sands. This is a high-risk strategy considering the extra costs associated with the extraction of oil from the oil sands compared to production from conventional oil wells. Amid the uncertain oil prices, the company has decided to hike its 2019 spending program which may hurt its cash flows. As such the stock is viewed as a risky bet. “
Several other research analysts have also recently commented on the stock. Mizuho restated an average rating and set a $52.00 target price on shares of Suncor Energy in a report on Monday, December 3rd. Canaccord Genuity set a $65.00 target price on shares of Suncor Energy and gave the stock a buy rating in a report on Tuesday, November 20th. Raymond James restated a buy rating on shares of Suncor Energy in a report on Friday, November 2nd. GARP Research upgraded shares of Suncor Energy from a neutral rating to a buy rating in a report on Monday, October 22nd. Finally, UBS Group restated a buy rating and set a $49.00 target price on shares of Suncor Energy in a report on Monday, January 7th. One research analyst has rated the stock with a sell rating, five have issued a hold rating and twelve have given a buy rating to the company. The company currently has a consensus rating of Buy and a consensus price target of $48.69.
Suncor Energy (NYSE:SU) (TSE:SU) last released its quarterly earnings results on Tuesday, February 5th. The oil and gas producer reported $0.27 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.38 by ($0.11). The company had revenue of $6.77 billion during the quarter, compared to analyst estimates of $8.13 billion. Suncor Energy had a net margin of 8.48% and a return on equity of 9.50%. As a group, equities research analysts predict that Suncor Energy will post 1.83 EPS for the current fiscal year.
The company also recently declared a quarterly dividend, which will be paid on Monday, March 25th. Shareholders of record on Monday, March 4th will be paid a $0.32 dividend. The ex-dividend date is Friday, March 1st. This represents a $1.28 dividend on an annualized basis and a yield of 3.96%. This is a boost from Suncor Energy’s previous quarterly dividend of $0.27. Suncor Energy’s dividend payout ratio (DPR) is currently 54.00%.
A number of hedge funds have recently made changes to their positions in SU. FTB Advisors Inc. raised its position in shares of Suncor Energy by 11.0% in the fourth quarter. FTB Advisors Inc. now owns 4,627 shares of the oil and gas producer’s stock valued at $129,000 after purchasing an additional 457 shares during the period. Advisor Group Inc. raised its position in shares of Suncor Energy by 37.0% in the fourth quarter. Advisor Group Inc. now owns 40,436 shares of the oil and gas producer’s stock valued at $1,131,000 after purchasing an additional 10,927 shares during the period. Raymond James Financial Services Advisors Inc. raised its position in shares of Suncor Energy by 14.9% in the fourth quarter. Raymond James Financial Services Advisors Inc. now owns 67,634 shares of the oil and gas producer’s stock valued at $1,890,000 after purchasing an additional 8,748 shares during the period. Commonwealth Equity Services LLC raised its position in shares of Suncor Energy by 14.2% in the fourth quarter. Commonwealth Equity Services LLC now owns 18,936 shares of the oil and gas producer’s stock valued at $529,000 after purchasing an additional 2,357 shares during the period. Finally, AlphaCrest Capital Management LLC bought a new position in shares of Suncor Energy in the fourth quarter valued at about $2,032,000. Hedge funds and other institutional investors own 65.81% of the company’s stock.
Suncor Energy Company Profile
Suncor Energy Inc operates as an integrated energy company. The company primarily focuses on developing petroleum resource basins in Canada's Athabasca oil sands; explores, acquires, develops, produces, and markets crude oil and natural gas in Canada and internationally; transports and refines crude oil; markets petroleum and petrochemical products primarily in Canada.
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