After hitting a 52-week low earlier this week, shares of Encana Corporation (USA) (NYSE:ECA) are bouncing back in a big way today. This could potentially be attributed to a small insider purchase by company director Fred Fowler, who purchased 10,000 shares, in a transaction that took place on December 17, but more likely it has to do with the fact that oil futures are shooting up today. Otherwise this move appears to be based on technical analysis after the stock hit its low.
It should be interesting to follow this stock and see if the bounce from the low is sustained or if a potential intraday head and shoulders pattern could form. The stock is up 7.49% or $0.35, hitting $5.02 per share. About 4.04M shares traded hands. ECA has declined 64.51% since May 20, 2015 and is downtrending. It has underperformed the S&P500 by 62.25%.
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 101.79% above today’s ($5.02) 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 $4.14 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.