Shares of Encana Corp. (NYSE: ECA) were downgraded by analysts at Scotiabank in a note to their investors today.With a rating of Underperform on the stock, Encana Corp. has a 52-week high of $10.75. A number of other analysts have issued reports on the company in recent days, and the company has earned a consensus one-year price target of $10.96, higher than the opening price of $9.23, a difference of 11.82 percent. considerable and crucial changes in the company’s procedures, future ision or industry can cause downgrades as the analysts feel that the future prospects for the security have dropped from the initial recommendation.
U.S. stocks on Monday closed mostly flat, after trading firmly higher, in a volatile session ahead of the start of a pair of closely watched central-bank policy meetings.
The Dow Jones Industrial Average DJIA, -0.02% closed down 3.63 points at 18,120.17.
The blue-chip gauge had been up by as much as 131 points earlier and traded within a 162-point range.
The S&P 500 SPX, +0.00% slipped 0.04 points to close at 2,139.12, after trading within an 18-point range
Meanwhile, the Nasdaq Composite Index COMP, -0.18% declined 9.54 points, or 0.2%, to close at 5,235.03.
Earlier, the index had been up by as many as 37 points and traded with a 58-point range
Yesterday Encana Corp. (NYSE: ECA) shares last traded at $9.27, which represents a dip of $0.59 from the previous closing price. Opening at $9.23, they ranged from $9.18 and $9.30 throughout the day.
Encana Corp. (NYSE: ECA) now has a market cap of 7.88B.
35,210,776 shares traded hands yesterday, 65 percent above normal, out of a total float 768,462,000. Heavy volume aggregation by institutional investors may be in the near future as the combination of significant increases in trading volume and price inflation can be determining components.
As with all possible breakouts, investors look for volume to be at least 40%-50% above normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these have teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
By identifying trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.
With that in mind, Encana Corp. (NYSE: ECA) now has a 50-day MA of $9.48 and 200-day MA of $7.74. It has traded in a 52-week range between $3.00 – 10.75 and today’s last price is 0.14% lower than the 52 week high of $10.75.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors seek companies that have raised their earnings by at least 25% over 3 consecutive years.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.