May 29, 2023 – Sequoia Financial Advisors LLC recently disclosed in its latest Form 13F filing with the Securities and Exchange Commission (SEC) that it has acquired a new position in Suncor Energy Inc. (NYSE:SU) (TSE:SU). With an investment of $312,000, they have purchased 9,819 shares of the oil and gas producer’s stock.
Suncor Energy, Inc., is an integrated energy company that fosters the development of petroleum resource basins. These activities are carried out through different business segments such as Oil Sands, Exploration and Production, Refining and Marketing, and Corporate and Eliminations. It operates assets in the Athabasca oil sands of northeast Alberta.
On Monday morning SU stock opened at $28.54 as per reports of the previous day. Being one of the major companies in the industry having a market capitalization worth $37.45 billion is significant for Suncor Energy Inc. Additionally, with a low P/E ratio (price-to-earnings ratio) of only 6.31 and a P/E/G ratio (price-to-earnings-growth ratio) of 0.64 signifies how reasonably valued its shares are currently when compared to their respective earnings growth rate.
However, there remains considerable upside potential as evident from its current beta value of 1.28 relative to the broader market implying that it may experience stronger returns or losses in comparison to other securities trading on Wall Street.
Nevertheless, SU’s performance over the past year has been slightly lackluster with a declined share price amounting to $26.42 per share being recorded as the twelve-month low compared to last year’s highest mark at $42.72 per share within the same time frame.
The quick ratio of Suncor shares stands at 0.69 depicting its ability to meet short-term obligations while maintaining an optimal liquidity position. Moreover, the company’s current ratio of 1.11 denotes the number of assets it can use to cater to debt obligations due within one year.
In conclusion, Sequoia Financial Advisors has taken an unexpected stake in SU and this could indicate that the firm views Suncor stock as a relatively attractive investment opportunity in 2023. Nonetheless, SU may still face challenges in terms of attaining its previous shareholder value mark in the near future.
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Hedge Funds Raise Stakes in Suncor Energy, Analysts Weigh In on Performance
Suncor Energy, a prominent oil and gas producer, has been in the spotlight recently after several hedge funds raised their stakes in the company. Among them were PCJ Investment Counsel Ltd., which lifted its holdings by 13.1% during the last quarter, and Connor Clark & Lunn Investment Management Ltd., which increased its stake by 25.2%. Victory Capital Management Inc. also bought a new position in Suncor Energy worth $1,429,000.
The news has caught the attention of equities analysts who have weighed in on Suncor Energy’s performance. National Bank Financial upgraded the company from a “sector perform” rating to an “outperform” rating in April, while Scotiabank lowered its rating from “sector outperform” to “sector perform” in March. TD Securities raised its price objective for Suncor Energy to C$53.00 in February, and StockNews.com recently initiated coverage on the company with a “hold” rating.
However, Bloomberg reports that the stock currently has a consensus rating of “hold,” with five investment analysts holding that opinion and three giving it a buy rating. The consensus price target stands at $54.57.
Suncor Energy also recently announced a quarterly dividend to be paid on June 26th to investors of record on June 5th. The dividend payout ratio is presently 33.63%, representing an annualized yield of 5.38%.
Despite uncertainties surrounding the oil and gas industry as it grapples with climate change concerns and shifting markets, many investors continue to have faith in companies like Suncor Energy that are adapting to these changes while maintaining stable profits. As institutional investors take notice and raise their stakes in these companies, we can expect ongoing discussion about where they fit into our changing energy landscape.
