Suncor Energy (NYSE:SU) Cut to Hold at Zacks Research

Zacks Research downgraded shares of Suncor Energy (NYSE:SU) (TSE:SU) from a strong-buy rating to a hold rating in a research report released on Tuesday morning,Zacks.com reports.

Several other analysts have also commented on SU. The Goldman Sachs Group raised their price target on shares of Suncor Energy from $46.00 to $48.00 and gave the company a “buy” rating in a research report on Friday, January 2nd. Raymond James Financial upgraded Suncor Energy from a “market perform” rating to an “outperform” rating in a research note on Thursday, November 6th. Weiss Ratings reiterated a “buy (b)” rating on shares of Suncor Energy in a research report on Monday, December 29th. Royal Bank Of Canada reissued an “outperform” rating and issued a $65.00 price objective on shares of Suncor Energy in a report on Friday, October 3rd. Finally, Wells Fargo & Company initiated coverage on Suncor Energy in a research report on Friday, October 17th. They issued an “equal weight” rating for the company. Two equities research analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $55.67.

Suncor Energy Stock Down 1.4%

Shares of SU opened at $49.80 on Tuesday. The company has a market capitalization of $59.44 billion, a price-to-earnings ratio of 16.33 and a beta of 0.46. Suncor Energy has a 52 week low of $30.79 and a 52 week high of $50.82. The stock’s 50-day moving average price is $45.11 and its 200-day moving average price is $41.99. The company has a quick ratio of 0.85, a current ratio of 1.35 and a debt-to-equity ratio of 0.19.

Suncor Energy (NYSE:SU) (TSE:SU) last announced its quarterly earnings results on Tuesday, November 4th. The oil and gas producer reported $1.07 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.85 by $0.22. The company had revenue of $9.04 billion during the quarter, compared to the consensus estimate of $8.82 billion. Suncor Energy had a return on equity of 13.01% and a net margin of 10.61%.During the same period in the previous year, the company posted $1.48 earnings per share. On average, sell-side analysts predict that Suncor Energy will post 3.42 EPS for the current year.

Suncor Energy Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, December 24th. Shareholders of record on Wednesday, December 3rd were paid a $0.60 dividend. This is a positive change from Suncor Energy’s previous quarterly dividend of $0.41. The ex-dividend date of this dividend was Wednesday, December 3rd. This represents a $2.40 dividend on an annualized basis and a yield of 4.8%. Suncor Energy’s dividend payout ratio is 56.39%.

Institutional Investors Weigh In On Suncor Energy

A number of large investors have recently made changes to their positions in SU. Shell Asset Management Co. increased its position in Suncor Energy by 65.8% during the second quarter. Shell Asset Management Co. now owns 103,082 shares of the oil and gas producer’s stock worth $3,854,000 after purchasing an additional 40,892 shares during the last quarter. CWA Asset Management Group LLC grew its stake in shares of Suncor Energy by 64.9% in the 3rd quarter. CWA Asset Management Group LLC now owns 117,779 shares of the oil and gas producer’s stock valued at $4,924,000 after buying an additional 46,342 shares during the period. Ontario Teachers Pension Plan Board increased its holdings in shares of Suncor Energy by 15.6% during the 2nd quarter. Ontario Teachers Pension Plan Board now owns 315,278 shares of the oil and gas producer’s stock worth $11,818,000 after buying an additional 42,506 shares during the last quarter. Allspring Global Investments Holdings LLC increased its holdings in shares of Suncor Energy by 45.7% during the 3rd quarter. Allspring Global Investments Holdings LLC now owns 723,965 shares of the oil and gas producer’s stock worth $29,871,000 after buying an additional 227,197 shares during the last quarter. Finally, Legal & General Group Plc raised its position in shares of Suncor Energy by 1.4% during the 2nd quarter. Legal & General Group Plc now owns 4,941,181 shares of the oil and gas producer’s stock valued at $184,730,000 after buying an additional 66,610 shares during the period. 67.37% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Suncor Energy

Here are the key news stories impacting Suncor Energy this week:

• Positive Sentiment: JPMorgan upgraded Suncor, providing near-term support from a major bank analyst — this can attract buyers and help limit downside. Suncor Energy (NYSE:SU) Stock Rating Upgraded by JPMorgan Chase & Co.
• Neutral Sentiment: Market write-ups are debating whether recent reassessment of Suncor creates a valuation opportunity; these pieces may encourage value-focused investors but don’t change near-term catalysts. Has The Reassessment Of Suncor Energy (TSX:SU) Created A Valuation Opportunity?
• Neutral Sentiment: Wells Fargo assigned a “hold” to Suncor, another neutral/ cautious signal that may blunt the impact of upgrades. Suncor Energy (SU) Gets a Hold from Wells Fargo
• Negative Sentiment: Zacks Research downgraded Suncor from “strong-buy” to “hold,” reducing buy-side conviction from that research house and likely contributing to selling pressure. Zacks.com
• Negative Sentiment: Unusually large put-option activity: investors bought ~28,315 Suncor put contracts (a ~2,998% rise over typical put volume). Heavy put demand can reflect bearish bets or hedging by longs and likely amplified downside movement in the stock today. Investors Buy High Volume of Suncor Energy Put Options (NYSE:SU)
• Negative Sentiment: Suncor was ordered to pay ~CAD 160,000 to a former shift supervisor after dismissal — a reputational/legal cost that is immaterial to the company’s balance sheet but adds a modest near-term headline risk. ‘Tunnel vision’: Suncor ordered to pay $160,000 to ex-shift supervisor

Suncor Energy Company Profile

Suncor Energy Inc is a Canadian integrated energy company headquartered in Calgary, Alberta. The company’s operations span the full oil and gas value chain, with principal activities in oil sands development and production, conventional exploration and production, refining, distribution and retail marketing of petroleum products. Suncor supplies crude, synthetic crude and refined fuels as well as related products and services to commercial and consumer markets.

Upstream, Suncor is a major developer and operator of oil sands projects in Alberta, using both mining and in situ technologies to produce bitumen and synthetic crude.