Analysts at Scotia Howard Weill downgraded shares of Encana Corp. (NYSE: ECA) from Sector Perform to Underperform in a research note to investors today. The company currently has a rating of Underperform on the stock. The one-year price target of $10.96 is above the opening price of $9.23, resulting a number of other analysts to comment on the stock recently. Looking back over the last 52 weeks, Encana Corp. stock has a high of $10.75. Important and fundamental digressions in the company’s operations, future direction or industry can cause downgrades as the analysts consider that the future prospects for the security have diminished from the initial recommendation.
U.S. stocks closed higher Tuesday as investors anticipate the results of meetings from the Federal Reserve and the Bank of Japan.
The Dow Jones Industrial Average DJIA, +0.05% rose 9.79 points, or less than 0.1%, to close at 18,129.96.
The S&P 500 index SPX, +0.03% advanced 0.64 points to finish at 2,139.76, led by gains in the health-care and consumer-staples sectors.
The Nasdaq Composite index COMP, +0.12% gained 6.33 points, or 0.1%, to close at 5,241.35.
Shares of Encana Corp. (NYSE: ECA) opened at $9.23 yesterday and traded in a range between, $9.10 and $9.35, and last traded at $9.11, which represents a drop of $0.75 over the previous closing price.
Encana Corp. (NYSE: ECA) now has a market cap of 7.74B.
101,682,573 shares crossed the trading desk yesterday, 30 percent above the norm, out of a total float 768,462,000. Significant gains in trading volume and price appreciation together could mean considerable volume aggregation by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% greater than normal on the breakout to demonstrate that fund managers and other professional investors are jumping in.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these have substantial teams of analysts that research thousands of stocks, so it is good validation to see them buying a stock you’re considering.
By tracking the activity of these professional investors—and the moving averages they influence— traders can make smarter trades.
With that in mind, Encana Corp. (NYSE: ECA) now has a 50-day MA of $9.52 and 200-day MA of $7.76. It has traded in a 52-week range between $3.00 – 10.75 and today’s last price is 0.15% lower than the 52 week high of $10.75.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors seek companies that have been successful at growing their earnings by at least 25% for a 3 year period.
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