Zacks Investment Research upgraded shares of Suncor Energy (NYSE:SU) (TSE:SU) from a hold rating to a buy rating in a report published on Saturday. The firm currently has $43.00 price target on the oil and gas producer’s stock.
According to Zacks, “Ahead of Suncor Energy's Q4 earnings, we are taking a bullish stance on the company. Higher commodity prices, record production and aggressive cost reduction helped Canada’s biggest energy company come out with better-than-expected profits during 3 of the last 4 quarters. Suncor's total production rose to a record during the third quarter, helped largely by increased output from its oil sands operations. Importantly, SU's success in reducing cash costs have magnified the effects of rebound in oil prices. A healthy dividend and an aggressive share buyback program are other positives in the Suncor story. Consequently, we think SU – which has outperformed the Zacks Oil & Gas Canadian Integrated industry year in the last 12 months – offers upside potential from current levels and label it as an attractive investment.”
A number of other equities research analysts have also recently commented on the stock. Canaccord Genuity reaffirmed a buy rating and set a $51.00 price objective on shares of Suncor Energy in a research note on Thursday, October 26th. Morgan Stanley raised their price objective on shares of Suncor Energy from $48.00 to $52.00 and gave the stock an overweight rating in a research note on Friday, October 13th. Edward Jones raised shares of Suncor Energy from a hold rating to a buy rating in a research note on Monday, November 20th. Wolfe Research raised shares of Suncor Energy from a market perform rating to an outperform rating in a research note on Monday, October 16th. Finally, TD Securities cut shares of Suncor Energy from a buy rating to a hold rating and set a $50.00 price objective on the stock. in a research note on Thursday, November 16th. One analyst has rated the stock with a sell rating, four have given a hold rating, ten have issued a buy rating and one has given a strong buy rating to the company. Suncor Energy currently has an average rating of Buy and a consensus target price of $44.33.
Suncor Energy (NYSE:SU) (TSE:SU) last issued its quarterly earnings data on Wednesday, October 25th. The oil and gas producer reported $0.41 EPS for the quarter, topping analysts’ consensus estimates of $0.26 by $0.15. The business had revenue of $6.40 billion for the quarter, compared to analysts’ expectations of $6.80 billion. Suncor Energy had a net margin of 11.63% and a return on equity of 5.68%. research analysts anticipate that Suncor Energy will post 1.52 EPS for the current year.
The firm also recently announced a quarterly dividend, which was paid on Friday, December 22nd. Stockholders of record on Friday, December 1st were given a dividend of $0.251 per share. This is a positive change from Suncor Energy’s previous quarterly dividend of $0.19. The ex-dividend date of this dividend was Thursday, November 30th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 2.71%. Suncor Energy’s dividend payout ratio (DPR) is 60.84%.
Several large investors have recently made changes to their positions in SU. Thornburg Investment Management Inc. purchased a new position in shares of Suncor Energy during the 3rd quarter valued at approximately $136,771,000. Capital International Investors purchased a new position in shares of Suncor Energy during the 2nd quarter valued at approximately $106,342,000. Janus Henderson Group PLC purchased a new position in shares of Suncor Energy during the 2nd quarter valued at approximately $99,291,000. Check Capital Management Inc. CA lifted its position in shares of Suncor Energy by 95.8% during the 3rd quarter. Check Capital Management Inc. CA now owns 4,094,299 shares of the oil and gas producer’s stock valued at $143,423,000 after buying an additional 2,002,773 shares in the last quarter. Finally, Vanguard Group Inc. lifted its position in shares of Suncor Energy by 4.9% during the 2nd quarter. Vanguard Group Inc. now owns 40,423,181 shares of the oil and gas producer’s stock valued at $1,180,357,000 after buying an additional 1,892,375 shares in the last quarter. Hedge funds and other institutional investors own 65.57% of the company’s stock.
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About Suncor Energy
Suncor Energy Inc is a Canada-based integrated energy company. The Company is focused on developing Canada’s petroleum resource basin, Athabasca oil sands. The Company operates in three business segments: Oil Sands, Exploration and Production (E&P), and Refining and Marketing. The Company’s Oil Sands segment includes Oil Sands operations and Oil Sands ventures operations.
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