Cenovus Insiders Cluster Buy in a Show of Confidence

Catering to both Canadian and international markets, Cenovus Energy Inc (CVE:US) works in the development, refining, and distribution of crude oil, natural gas, and refined petroleum products. Currently, the merged company ranks as Canada's second-largest producer of oil and natural gas.

Possessing a current Market Cap of almost CAD 48.82 billion ($35.43 billion), CVE stock is trading 14.05% higher year-to-date. While the energy market is in high demand, Cenovus’s insiders seem to have more confidence in the company’s potential than anything else.

Insiders Stocking Up Millions Worth

From June 5 to 6, three insiders at Cenovus invested more than a million worth of USD in CVE shares: 

• Jeffery George Lawson, the Senior Vice President, bought 5,000 shares on June 6, 2024, at a share price of CAD 26.06.

• Jonathan Michael McKenzie, the President and CEO, bought 50,000 shares on the same day at a share price of CAD 26.16.

• Michael John Crothers, an Independent Director, bought 1,000 shares on June 5, 2024, at a share price of CAD 26.37.

Amounting to a value of exactly CAD 1,464,670 ($1,069,888), these three trades were only the latest reported this year.

CEO McKenzie bought up to 225,000 CVE shares from five trades in 2024, including the above mentioned trade. His purchases this year have come to nearly $4.19M. 

On the other hand, both Lawson and Crothers made four and two CVE purchases respectively in 2024. Combined, they bought 14,500 shares worth almost $290,000. 

Quarterly Results & Market Hope

On May 1, Cenovus brought forward its earnings results for the first quarter of 2024. Total Revenues for the quarter were up to $13.4 billion, slightly higher than the $13.1 billion earned in Q4 2023. Segment revenues were also significantly higher while the Operating margin was up to $3.2 billion, almost 45.50% higher in comparison to the last quarter. 

In crude oil production, the company reported a downstream throughput of 655,000 barrels per day (bbls/d). These came from refineries in Canada and the USA, both operating at 94% and 87% of their total capacity.

As of May 02, 2024, Canada’s TD Securities and Jefferies Group gave CVE a buy rating while the energy stock has received an ‘Outperform’ rating from several other analysts. Despite the push for green and sustainable energy, oil and gas are still in high demand amongst consumers. Prices are also expected to remain high this year setting up oil stocks for a profitable year in 2024.