Encana Corporation (NYSE:ECA) grew as high as $6.88 on Friday before closing at $6.74. The 1.81 percent rally pushed its market cap to $6.44B. The shares went down as low as $6.47 before recovering. Trading activity significantly improved as the volume at ready counter increased to 56,119,671 shares versus 26,131,555 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 36,833,813 shares. The stock is now 34.8% above against its bear-market low of $5 on December 26, 2018. It has retreated -111.87% since it’s 52-week high of $14.28 reached in August. Now the market price is down -51.16% on the year and up 16.61% YTD.
ECA’s 50 day simple moving average (SMA 50) price is $6.99 and its 200-day simple moving average (SMA 200) price is $11.17. The company’s stock currently has a total float of 951.28M shares. Its weekly volatility is hovering around 5.95% and felt 6.19% volatility in price over a month. On the upside, the share price will test short term resistance at around $6.92. On a downside, the stock is likely to find some support, which begins at $6.51. The failure to get near-term support could push it to $6.29.
Separately, it has been reported that multiple insider activity took place at Encana Corporation (ECA). President and CEO Suttles Douglas James acquired 5,000 shares for $159,212 in transaction occurred on 2018/12/20. After making this transaction, the President and CEO owns a direct stake of 27,750 shares, worth $1,073,089, as per the last closing price. On 2018/12/19 Nimocks Suzanne P, Director at ECA, purchased 2,500 shares at an average price of $5.91 per share. The new stake is valued at $105,144.
Director, Fowler Fred J had invested in 10,000 shares for $25,000 through a trade on 2018/12/18. Following this activity, the insider holds 56,400 shares worth $168,500 as of recent close. Wall Street’s most bullish Encana Corporation (NYSE:ECA) analysts are predicting the share price to blow past $17.5 per share during the next 12 months. The current median share price forecast by them is $11, suggesting that the stock could increase 63.2% in that time frame. The average price target of $11.03 calls for a nearly 63.65% increase in the stock price.
It had seen a new analyst call from MKM Partners, which initiated the stock at Buy on December 06. Analysts at Cowen, started covering the stock on November 30 with a Market Perform rating. The stock lost favor of Macquarie analysts who expressed their lack of confidence in it using a downgrade from Outperform to Neutral on November 28.
When looking at valuations, Encana Corporation (ECA) has a pricey P/E of 48.14x as compared to industry average of 16.71x. Moreover, it trades for 7.25 times the next 12 months of expected earnings. Also, it is trading at rather inexpensive levels at just over 0.99x price/book and 1.35x price/sales. Compared to others, Encana Corporation is in a different league with regards to profitability, having net margins of -4%. To put some perspective around this, the industry’s average net margin is 6.89%. ECA’s ROE is -2.9%, which is also considerably worse than the industry’s ROE of 6.89%. It’s also not liquid in the near term, with a current ratio of 0.7. The stock has a debt/capital of 0.88.
Shares of Encana Corporation (ECA) have dropped -34.2% since the company’s Mar-19 earnings report. Over the past 12 fiscal quarters, Encana Corporation (NYSE:ECA) has topped consensus earnings estimates in 10 quarters (83%), missed earnings in 2 quarters (16%), whereas at 0 occasion EPS met analyst expectations. ECA last reported earnings on November 01, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $0.17 per share, -99.42% change on the same period last year. That was better than consensus for $0.13. Revenue for the recent quarter stood at $1.26 billion, up 47% on last year and below the $1.34 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $1.5 billion to $1.66 billion, which should be compared with $1.2 billion generated last year. EPS is seen in a range of $0.16 to $0.31, against the $0.17 reported a year ago.