Zacks Investment Research Downgrades Encana (ECA) to Sell

Encana (NYSE:ECA) (TSE:ECA) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Tuesday.

According to Zacks, “Based on the number of near-term challenges, we are lowering our investment thesis for Encana Corp. to Sell from Hold. With natural gas unable to break through the $3 barrier, the company’s earnings and cash flows are bound to suffer, at least in the near-to-medium term. This is expected to limit its ability to deliver positive earnings surprises. Also, the recent equity offering – despite helping ECA to pay down debt and boost drilling – has significantly diluted existing shareholders' equity. Therefore, ahead of its second-quarter results, we see the company as a risky bet that is best avoided at the moment.”

A number of other equities research analysts have also recently weighed in on ECA. AltaCorp Capital upgraded Encana from a “sector perform” rating to an “outperform” rating in a research note on Wednesday, February 7th. Jefferies Group set a $17.00 price objective on Encana and gave the stock a “buy” rating in a research note on Tuesday, January 30th. National Bank Financial upped their price objective on Encana from $14.00 to $14.50 and gave the stock an “outperform” rating in a research note on Thursday, November 9th. TD Securities upped their price objective on Encana from $14.50 to $15.00 and gave the stock a “buy” rating in a research note on Thursday, November 9th. Finally, Barclays upped their price objective on Encana from $12.00 to $13.00 and gave the stock an “overweight” rating in a research note on Wednesday, October 25th. Two equities research analysts have rated the stock with a sell rating, one has given a hold rating, seventeen have assigned a buy rating and four have assigned a strong buy rating to the stock. Encana has a consensus rating of “Buy” and an average target price of $15.39.

Shares of Encana (ECA) traded down $0.23 during midday trading on Tuesday, hitting $10.63. The company had a trading volume of 8,531,885 shares, compared to its average volume of 8,981,437. The company has a quick ratio of 1.61, a current ratio of 1.61 and a debt-to-equity ratio of 0.60. The stock has a market cap of $10,580.00, a PE ratio of 13.30, a P/E/G ratio of 1.38 and a beta of 2.07. Encana has a 1 year low of $8.01 and a 1 year high of $14.31.

A number of institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. raised its stake in Encana by 3.8% in the fourth quarter. BlackRock Inc. now owns 25,830,298 shares of the oil and gas company’s stock valued at $344,316,000 after buying an additional 952,915 shares during the last quarter. CIBC Asset Management Inc increased its holdings in shares of Encana by 99.9% in the third quarter. CIBC Asset Management Inc now owns 13,144,660 shares of the oil and gas company’s stock valued at $154,346,000 after purchasing an additional 6,568,955 shares during the period. Guardian Capital LP increased its holdings in shares of Encana by 39.7% in the third quarter. Guardian Capital LP now owns 7,302,829 shares of the oil and gas company’s stock valued at $85,750,000 after purchasing an additional 2,076,822 shares during the period. Mackenzie Financial Corp increased its holdings in shares of Encana by 481.4% in the fourth quarter. Mackenzie Financial Corp now owns 6,537,589 shares of the oil and gas company’s stock valued at $87,146,000 after purchasing an additional 5,413,151 shares during the period. Finally, The Manufacturers Life Insurance Company increased its holdings in shares of Encana by 58.4% in the fourth quarter. The Manufacturers Life Insurance Company now owns 6,053,257 shares of the oil and gas company’s stock valued at $80,690,000 after purchasing an additional 2,231,034 shares during the period. Institutional investors own 68.34% of the company’s stock.

WARNING: This news story was originally posted by American Banking News and is owned by of American Banking News. If you are accessing this news story on another publication, it was illegally copied and republished in violation of international copyright & trademark law. The legal version of this news story can be read at https://www.americanbankingnews.com/2018/02/13/zacks-investment-research-downgrades-encana-eca-to-sell.html.

Encana Company Profile

Encana Corporation is an energy producer that is focused on developing its multi-basin portfolio of natural gas, oil and natural gas liquids (NGLs) producing plays. The Company’s operations also include the marketing of natural gas, oil and NGLs. All of its reserves and production are located in North America.

Get a free copy of the Zacks research report on Encana (ECA)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Encana (NYSE:ECA)

Receive News & Ratings for Encana Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Encana and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply