Tracking Technical Indicators For Encana Corporation (ECA)

A handful of technical analysis tools are suggesting that Encana Corporation (NYSE:ECA) overall gets 96% Sell rating. The stock is also flashing a Sell from the Barchart TrendSpotter trading system. Traders hoping to speculate on the ECA’s short-term trajectory should know that short terms indicators for the stock averaged 80% Sell with an average daily trading volume over the past 20 days at 30972855 shares. ECA stock has overall a 1% Sell signal considering medium term indicators and the 50-day average daily volume remained almost 23634041 shares. It’s also worth noting that the stock, whose average daily volume over the 100 days prior to this writing was 15636890 shares, is 100% Sell on the basis of long term indicators.

The share price is currently staying around the first support level of $6.32. Below this, the next support is placed in the zone of $6.17. Till the time, the ECA stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 24.39 on daily chart, which may remain a cause for comfort. If the price breaks below $6.17 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $6.61 mark may result into a pull-back move towards $6.75 level.

Encana Corporation (ECA) is projected to climb by 123.03 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $18.5-month high price target. This represents a whopping 185.94 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $13.5, which represents a return potential of 108.66 percent when compared to the closing price of the stock of $6.47 on Thursday, December 06. The lowest price target for the stock is $8.5 — slightly more than 31.38 percent from ECA’s current share price.

Here’s a rundown of insider trading activity for sense of Encana Corporation (NYSE:ECA). The earliest insider trade took place on 12/06/2018. Suttles Douglas James gathered a total of 5 thousand shares of company at average share price of $6.42. The total for the purchase was set at $32.1 thousand. After this transaction, the President and CEO account balance stood at 154.21 thousand shares. The stock grew 0.78 percent since that insider purchase. On 11/27/2018, Mayson Howard John, Director, purchased 3 thousand shares at a price per share of $6.9. This added 20.7 thousand shares to the insider’s fortune and the stock saw a -6.23 percent retreat in value since the news became public. This transaction left 41.6 thousand shares in the Director account. On 11/21/2018, Director Shaw Brian Gordon performed a purchase transaction worth $37.1 thousand. This purchase at $7.42 each has added 5 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -12.8 percent decrease since the transaction was reported. The insider now is left with 20 thousand shares remaining in the account. Suttles Douglas James, who performs the President and CEO job, bought 5 thousand shares for $35.2 thousand. The acquisition occurred on 11/20/2018 was priced at $7.04 per share. The share price plunged -8.1 percent since the reporting date. Suttles Douglas James now left with a stake of 149.21 thousand ECA stock worth $965.4 thousand after the insider buying.

ECA shares dropped -0.28 points or -4.15 percent on Thursday to $6.47 with a heavy trade volume of 30.648 million shares. After opening the session at $6.59, the shares went as high as $6.6 and as low as $6.31, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $6.39 billion and now has 987.08 million shares outstanding. Encana Corporation (ECA) stock has lost -27.14 percent of market value in 21 trading days.

Analysts at MKM Partners, assumed coverage of Encana Corporation (NYSE:ECA) with Buy recommendation, according to their opinion released on December 06. Analysts at Macquarie downgraded the stock to a Neutral call from its previous Outperform stance, in a research note that dated back to November 28.

ECA stock has a trailing 3-year beta of 2.16, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $0.14 a share in the trailing twelve months. The stock’s value has fallen -51.46 percent year to date (YTD) against a decline of -46.31 percent in 12 month’s time. The company’s shares still trade -54.79 percent away from its 1-year high of $14.31 and -2.56 percent down from 52-week low of $6.64. The average consensus rating on the company is 2.2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Encana Corporation (ECA) are trading at a P/E ratio of 13.01 times earnings reported for the past 12 months. The industry ECA operates in has an average P/E of 14.32. Its P/E ratio went as low as 3.03X and as high as 56.42 over the 5-year span. Further, it is sporting a 1.34 on the Price-to-Sales ratio. Compare this with the industry average P/S of 99.94. 65 percent is the gross profit margin for Encana Corporation and operating margin sits at 12.5 percent. Along with this, the net profit margin is -4 percent.

ECA will be declaring its Q4 financial results on February 14. Analysts are forecasting revenue to climb 20.2 percent to $1.45B in the next fiscal quarter, while earnings are seen soaring by nearly 58.33 percent to $0.19 per share. History has shown that shares in Encana Corporation have gone up on 9 different earnings reaction days and are predicted to add 0.04 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.17 per share, better than the $0.13, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $1.26B, worse than the $1.34B analysts expected. Earnings are estimated to increase by 210.9 percent this year, 51.84 percent next year and continue to increase by 45.95 percent annually for the next 5 years.