Encana (ECA) Downgraded to Hold at Zacks Investment Research

Encana (NYSE:ECA) (TSE:ECA) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Friday.

According to Zacks, “Encana’s shares have comfortably outperformed the Zacks Canadian E&P industry over the past year. This price performance is backed by an excellent earnings surprise history, with the Canadian energy behemoth having surpassed expectations in three of the trailing four quarters. The company's consistently strong numbers could be attributed to production growth from its core assets and higher liquids prices. Encana’s successful cost reduction initiatives are expected to further buoy the results and grow cash flow. Of late, Encana has successfully repositioned its asset base and transitioned to the more profitable crude. However, service cost inflation is likely to dampen investor confidence. Moreover, thecompany still produces considerable amount of natural gas, which continues to struggle. Hence, investors are advised to wait for a better entry point before buying shares in Encana.”

Several other research analysts also recently issued reports on ECA. ValuEngine downgraded shares of Encana from a “buy” rating to a “hold” rating in a research report on Tuesday, July 3rd. Canaccord Genuity reissued a “buy” rating and set a $19.00 price objective on shares of Encana in a research report on Thursday, July 12th. National Bank Financial lifted their target price on shares of Encana from $18.00 to $22.00 and gave the company a “$12.96” rating in a report on Wednesday, July 18th. Desjardins reaffirmed a “buy” rating and issued a $17.00 target price on shares of Encana in a report on Friday, July 27th. Finally, TD Securities set a $17.00 target price on shares of Encana and gave the company a “buy” rating in a report on Wednesday, August 1st. One investment analyst has rated the stock with a sell rating, three have given a hold rating and eighteen have issued a buy rating to the stock. The company has a consensus rating of “Buy” and an average target price of $16.35.



Shares of Encana stock opened at $10.25 on Friday. Encana has a 1 year low of $9.79 and a 1 year high of $14.31. The company has a current ratio of 0.73, a quick ratio of 0.73 and a debt-to-equity ratio of 0.57. The firm has a market cap of $9.76 billion, a price-to-earnings ratio of 20.10, a price-to-earnings-growth ratio of 0.93 and a beta of 2.02.

Encana (NYSE:ECA) (TSE:ECA) last issued its quarterly earnings data on Wednesday, August 1st. The oil and gas company reported $0.21 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.12 by $0.09. Encana had a net margin of 1.49% and a return on equity of 7.30%. The company had revenue of $983.00 million for the quarter, compared to the consensus estimate of $1.14 billion. On average, research analysts forecast that Encana will post 0.7 EPS for the current year.

A number of hedge funds have recently added to or reduced their stakes in the stock. Massachusetts Financial Services Co. MA boosted its holdings in Encana by 4.9% during the third quarter. Massachusetts Financial Services Co. MA now owns 1,702,170 shares of the oil and gas company’s stock worth $22,315,000 after buying an additional 79,678 shares in the last quarter. Seven Eight Capital LP purchased a new stake in Encana during the third quarter worth about $1,724,000. Aperio Group LLC boosted its holdings in Encana by 5.4% during the third quarter. Aperio Group LLC now owns 613,337 shares of the oil and gas company’s stock worth $8,041,000 after buying an additional 31,410 shares in the last quarter. Andra AP fonden boosted its holdings in Encana by 4.1% during the third quarter. Andra AP fonden now owns 184,700 shares of the oil and gas company’s stock worth $3,127,000 after buying an additional 7,200 shares in the last quarter. Finally, Zweig DiMenna Associates LLC purchased a new stake in Encana during the third quarter worth about $8,738,000. 67.31% of the stock is currently 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.

See Also: What are the most popular ETFs

Get a free copy of the Zacks research report on Encana (ECA)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Encana (NYSE:ECA)

Receive News & Ratings for Encana Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Encana and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply