Canada-based Cenovus Energy (NYSE:CVE) is a top player in the integrated energy space and has announced several sustainability initiatives. However, after seeing its price fall sharply over the past month due to declining interest from hedge funds, can the stock rebound? Read on.With the acquisition of Husky Energy (OTC:HUSKF) Inc. in January 2021, integrated energy company Cenovus Energy Inc . (CVE) became the third-largest Canadian oil and natural gas producer and the second-largest Canadian-based refiner and upgrader. The company declared a $0.02 dividend on its cumulative redeemable first preferred shares, payable on September 30, along with a third-quarter dividend.
However, the stock price has declined 13.4% over the past month to close yesterday’s trading session at $8.42. A decline in hedge fund interest in the stock is primarily responsible for the retreat.
A specific group of money managers sold their entire stakes in CVE in the first quarter. In addition, oil prices have declined by more than 3% because the rapidly spreading COVID-19 Delta variant has raised concerns about demand. As a result, CVE’s near-term prospects look uncertain.