Investors Buy Shares of Encana (ECA) on Weakness

Traders purchased shares of Encana Corp (NYSE:ECA) (TSE:ECA) on weakness during trading on Thursday. $137.07 million flowed into the stock on the tick-up and $117.45 million flowed out of the stock on the tick-down, for a money net flow of $19.62 million into the stock. Of all equities tracked, Encana had the 26th highest net in-flow for the day. Encana traded down ($1.28) for the day and closed at $8.96

A number of research firms have recently weighed in on ECA. Zacks Investment Research raised Encana from a “hold” rating to a “buy” rating and set a $13.00 price objective for the company in a research report on Monday, October 22nd. Morgan Stanley set a $19.00 price objective on Encana and gave the stock a “buy” rating in a research report on Friday, October 12th. TD Securities set a $17.00 price objective on Encana and gave the stock a “buy” rating in a research report on Wednesday, August 1st. Desjardins reissued a “buy” rating and issued a $17.00 price objective on shares of Encana in a research report on Friday, July 27th. Finally, BMO Capital Markets reissued a “buy” rating and issued a $18.00 price objective on shares of Encana in a research report on Thursday, October 11th. Two equities research analysts have rated the stock with a sell rating, three have issued a hold rating and eighteen have issued a buy rating to the stock. The stock has an average rating of “Buy” and an average target price of $15.36.

The company has a quick ratio of 0.73, a current ratio of 0.73 and a debt-to-equity ratio of 0.57. The stock has a market capitalization of $8.14 billion, a P/E ratio of 12.95, a PEG ratio of 0.78 and a beta of 2.15.

Encana (NYSE:ECA) (TSE:ECA) last issued its quarterly earnings results on Thursday, November 1st. The oil and gas company reported $0.17 EPS for the quarter, topping the Zacks’ consensus estimate of $0.13 by $0.04. Encana had a positive return on equity of 9.46% and a negative net margin of 3.98%. The company had revenue of $1.26 billion during the quarter, compared to analysts’ expectations of $1.25 billion. On average, research analysts predict that Encana Corp will post 0.7 earnings per share for the current year.

The company also recently declared a quarterly dividend, which will be paid on Monday, December 31st. Shareholders of record on Friday, December 14th will be given a dividend of $0.015 per share. The ex-dividend date is Thursday, December 13th. This represents a $0.06 dividend on an annualized basis and a yield of 0.70%. Encana’s dividend payout ratio is currently 13.95%.

Institutional investors and hedge funds have recently modified their holdings of the business. Morgan Stanley lifted its position in Encana by 34.2% during the 2nd quarter. Morgan Stanley now owns 19,464,355 shares of the oil and gas company’s stock worth $254,011,000 after acquiring an additional 4,962,470 shares during the period. Putnam Investments LLC lifted its position in Encana by 4.8% during the 2nd quarter. Putnam Investments LLC now owns 967,998 shares of the oil and gas company’s stock worth $12,633,000 after acquiring an additional 44,670 shares during the period. Tuttle Tactical Management lifted its position in Encana by 434.6% during the 2nd quarter. Tuttle Tactical Management now owns 79,120 shares of the oil and gas company’s stock worth $1,032,000 after acquiring an additional 64,320 shares during the period. Precocity Capital LP lifted its position in Encana by 158.3% during the 2nd quarter. Precocity Capital LP now owns 1,550,000 shares of the oil and gas company’s stock worth $20,228,000 after acquiring an additional 950,000 shares during the period. Finally, Guggenheim Capital LLC lifted its position in Encana by 25.7% during the 1st quarter. Guggenheim Capital LLC now owns 47,981 shares of the oil and gas company’s stock worth $528,000 after acquiring an additional 9,810 shares during the period. 67.32% of the stock is owned by institutional investors.

About Encana (NYSE:ECA)

Encana Corporation, together with its subsidiaries, engages in the exploration, development, production, and marketing of natural gas, oil, and natural gas liquids. The company holds interests in various assets, including the Montney in northern British Columbia and northwest Alberta; Duvernay in west central Alberta; and other upstream operations comprising Wheatland in southern Alberta, Horn River in northeast British Columbia, and Deep Panuke located in offshore Nova Scotia in Canada.

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