Encana Corporation (USA) (NYSE:ECA) shares continue their fall this morning after the company hit its 12-month low yesterday. Investors apparently are feeling bearish on this gas and oil transporter as oil prices continue to fall. The question remains, “how low will this stock go?”
Some might argue that Jim Cramer’s discussion on Encana Corporation (USA) (NYSE:ECA) has led to the stock’s continual fall today, as he explained that he believes the company took on too much debt and is now struggling to make the payments for their debt.
The good news is that oil prices can’t continue to fall. There has to be some end in sight, leading to us seeing some rebound in shares of Encana Corporation (USA) (NYSE:ECA) hopefully soon for those long in the company. With a 5.58% dividend yield, and the stock trading at its 52-week low, it appears as though up is the only way for this one to go — but appearances can always be deceiving.
The stock is down 4.27% or $0.21 following the news, hitting $4.71 per share. Approximately 2.34 million shares traded hands. ECA shares have declined 62.64% since May 19, 2015 and are currently downtrending. It has underperformed the S&P500 by 60.38%.
From a total of 12 analysts covering Encana Corporation (NYSE:ECA) stock, 7 rate it a “Buy”, 0 a “Sell”, and 5 a “Hold”. This means that 58% of the ratings are positive. The highest target price is $13 while the lowest target price is $8. The mean of all analyst targets is $10.13 which is 115.07% above today’s ($4.71) stock price. Encana Corporation was the topic of 25 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Jefferies upgraded shares on December 15 to a “Buy” rating. FirstEnergy Capital upgraded shares to a”Outperform” rating and a $11.50 target share price in their report from a July 28. FirstEnergy Capital upgraded ECA stock in a recent report from December 4 to a “Outperform” rating. Finally, Citigroup maintained the stock with a “Neutral” rating in a report they issued on a September 14.
Encana Corporation is engaged in the business of the exploration, development, production and marketing of natural gas, oil and natural gas liquids . The company has a market cap of $4.17 billion. The Firm operates through three business divisions: Canadian Operations, which includes the exploration for, development of, and production of natural gas oil and NGLs and other related activities within Canada; USA Operations, which includes the exploration for, development of, and production of natural gas oil and NGLs and other related activities within the United States and Market Optimization, which includes third-party purchases and sales of products that provide operational flexibility for transportation commitments, product type, delivery points and customer diversification. It currently has negative earnings. Market Optimization sells all of the Company’s upstream production to third-party customers.