Suncor Energy Inc. (NYSE:SU) Receives Average Rating of “Buy” from Brokerages

Suncor Energy Inc. (NYSE:SU) (TSE:SU) has received an average recommendation of “Buy” from the ten ratings firms that are covering the firm, MarketBeat.com reports. Two analysts have rated the stock with a hold rating, six have issued a buy rating and two have issued a strong buy rating on the company. The average 1-year price target among analysts that have issued ratings on the stock in the last year is $71.6667.

SU has been the topic of a number of research analyst reports. The Goldman Sachs Group cut Suncor Energy from a “buy” rating to a “neutral” rating and set a $72.00 price target on the stock. in a report on Friday, June 5th. Desjardins upgraded Suncor Energy to a “moderate buy” rating in a report on Thursday, July 16th. Zacks Research raised shares of Suncor Energy from a “hold” rating to a “strong-buy” rating in a research report on Monday, July 6th. Wall Street Zen downgraded shares of Suncor Energy from a “strong-buy” rating to a “buy” rating in a research note on Saturday, August 1st. Finally, Scotiabank raised shares of Suncor Energy to a “strong-buy” rating in a research report on Friday, June 26th.

Trending Headlines about Suncor Energy

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

• Positive Sentiment: Quarterly earnings beat expectations: Suncor reported second-quarter earnings of C$2.33 per share, above the C$2.14 consensus estimate and well ahead of C$0.71 a year earlier. Revenue reached C$13.41 billion versus the C$11.68 billion estimate, while net profit was reported at approximately C$3.7 billion. Higher crude-price realizations and stronger refining margins drove the improvement. Suncor beats quarterly profit estimates on higher crude realizations, refining margins
• Positive Sentiment: Dividend maintained: Suncor declared a quarterly dividend of C$0.60 per share, payable September 25 to shareholders of record September 4. The annualized payout represents a yield of roughly 3.8%, supporting the stock’s income appeal. Suncor Energy declares dividend
• Neutral Sentiment: Policy backdrop is favorable: Federal and Alberta governments are pursuing reforms intended to support Canadian oil-industry growth. However, the immediate financial benefit remains uncertain. Suncor not ready to speed output growth
• Negative Sentiment: Management is resisting faster production growth: CEO Rich Kruger said Suncor is not yet prepared to accelerate planned output increases despite the pro-oil policy environment. This limits near-term volume upside and may disappoint investors seeking faster growth from the company’s oil-sands assets. Suncor not ready to speed output growth

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the company. Versant Capital Management Inc lifted its holdings in shares of Suncor Energy by 418.9% in the 2nd quarter. Versant Capital Management Inc now owns 493 shares of the oil and gas producer’s stock worth $26,000 after buying an additional 398 shares during the period. Atlantic Edge Private Wealth Management LLC grew its holdings in Suncor Energy by 54.9% during the 4th quarter. Atlantic Edge Private Wealth Management LLC now owns 635 shares of the oil and gas producer’s stock worth $28,000 after acquiring an additional 225 shares in the last quarter. 1 North Wealth Services LLC purchased a new position in Suncor Energy during the 4th quarter valued at about $32,000. Cassaday & Co Wealth Management LLC purchased a new stake in shares of Suncor Energy in the 1st quarter worth approximately $53,000. Finally, Headlands Technologies LLC bought a new position in Suncor Energy in the second quarter worth approximately $31,000. 67.37% of the stock is currently owned by hedge funds and other institutional investors.

Suncor Energy Price Performance

SU opened at $62.91 on Thursday. Suncor Energy has a 12-month low of $37.76 and a 12-month high of $70.29. The company has a current ratio of 1.42, a quick ratio of 0.92 and a debt-to-equity ratio of 0.20. The company has a market cap of $74.28 billion, a price-to-earnings ratio of 11.59, a price-to-earnings-growth ratio of 0.48 and a beta of 0.30. The stock has a fifty day simple moving average of $60.55 and a two-hundred day simple moving average of $60.50.

Suncor Energy (NYSE:SU) (TSE:SU) last issued its quarterly earnings data on Tuesday, May 5th. The oil and gas producer reported $1.41 earnings per share for the quarter, missing analysts’ consensus estimates of $1.45 by ($0.04). Suncor Energy had a net margin of 15.62% and a return on equity of 20.35%. The company had revenue of $10.41 billion for the quarter, compared to the consensus estimate of $9.22 billion. During the same quarter last year, the company earned $1.31 EPS. Research analysts predict that Suncor Energy will post 7.11 earnings per share for the current fiscal year.

Suncor Energy Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Investors of record on Friday, September 4th will be paid a $0.60 dividend. The ex-dividend date of this dividend is Friday, September 4th. This represents a $2.40 annualized dividend and a yield of 3.8%. Suncor Energy’s dividend payout ratio is 45.67%.

About Suncor Energy

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.