Encana (ECA) Downgraded by Morgan Stanley to Equal Weight

Encana (NYSE:ECA) (TSE:ECA) was downgraded by investment analysts at Morgan Stanley from an “overweight” rating to an “equal weight” rating in a research note issued on Monday, Marketbeat Ratings reports. They currently have a $15.00 target price on the oil and gas company’s stock. Morgan Stanley’s price target indicates a potential upside of 72.22% from the stock’s current price.

Several other equities analysts have also recently weighed in on the company. National Bank Financial cut their price target on Encana from $22.00 to $18.50 and set an “outperform” rating for the company in a report on Friday, November 2nd. Royal Bank of Canada cut their price target on Encana from $16.00 to $14.00 and set an “outperform” rating for the company in a report on Friday, November 2nd. Jefferies Financial Group set a $14.00 price target on Encana and gave the company a “buy” rating in a report on Friday, November 2nd. BMO Capital Markets cut Encana from an “outperform” rating to a “market perform” rating and cut their price target for the company from $18.00 to $12.00 in a report on Friday, November 2nd. Finally, Raymond James cut Encana from a “strong-buy” rating to an “outperform” rating and cut their price target for the company from $18.00 to $17.00 in a report on Friday, November 2nd. Two investment analysts have rated the stock with a sell rating, five have assigned a hold rating and sixteen have given a buy rating to the stock. The company presently has an average rating of “Buy” and a consensus price target of $15.14.

NYSE ECA opened at $8.71 on Monday. The company has a market cap of $8.14 billion, a price-to-earnings ratio of 20.26, a PEG ratio of 0.78 and a beta of 2.15. The company has a debt-to-equity ratio of 0.57, a current ratio of 0.73 and a quick ratio of 0.73. Encana has a 1-year low of $8.44 and a 1-year high of $14.31.

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

In related news, Director Howard John Mayson bought 10,000 shares of the company’s stock in a transaction dated Monday, November 5th. The stock was purchased at an average price of $8.74 per share, for a total transaction of $87,400.00. Following the acquisition, the director now owns 35,104 shares in the company, valued at $306,808.96. The purchase was disclosed in a filing with the SEC, which is available at the SEC website. Also, COO Michael Gerard Mcallister bought 8,655 shares of the company’s stock in a transaction dated Monday, November 5th. The stock was bought at an average price of $8.77 per share, with a total value of $75,904.35. Following the acquisition, the chief operating officer now owns 25,677 shares in the company, valued at approximately $225,187.29. The disclosure for this purchase can be found here. In the last quarter, insiders bought 72,405 shares of company stock valued at $640,902. Company insiders own 0.09% of the company’s stock.

Several hedge funds have recently modified their holdings of ECA. Clinton Group Inc. bought a new stake in shares of Encana during the 2nd quarter worth approximately $131,000. Advisor Partners LLC bought a new stake in shares of Encana during the 2nd quarter worth approximately $134,000. Suntrust Banks Inc. bought a new stake in shares of Encana during the 1st quarter worth approximately $165,000. Fox Run Management L.L.C. bought a new stake in shares of Encana during the 3rd quarter worth approximately $196,000. Finally, Edgestream Partners L.P. bought a new stake in shares of Encana during the 2nd quarter worth approximately $209,000. 67.17% of the stock is owned by hedge funds and other institutional investors.

Encana Company Profile

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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Analyst Recommendations for Encana (NYSE:ECA)

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