Analysts at Zacks Investment Research downgraded shares of Encana Corp. (NYSE: ECA) from Strong-Buy to Hold in a research note to investors today. With a rating of Hold on the stock, Encana Corp. has a 52-week high of $10.75. The one-year price target of $11.05 is above the opening price of $9.24, that has caused a number of other analysts to comment on the company recently. Material and crucial changes in the company’s procedures, future outlook or industry can cause downgrades as the analysts believe that the future prospects for the security have diminished from the initial recommendation.
The Fed stood pat on interest rates on Wednesday, helping stocks to mostly higher levels but Chairwoman Janet Yellen indicated an interest rate hike is likely by year’s end
On Wednesday, the S&P 500 SPX, +1.09% ended 1.1% higher, while the Dow DJIA, +0.90% jumped by 0.9%, or 164 points, as each exchange finished in positive territory for a second consecutive day.
The tech-heavy Nasdaq Composite COMP, +1.03% tacked on 1% and scored a record closing high.
S&P 500 futures ESZ6, +0.36% were up 6.55 points, or 0.3%, to 2,162.75 early Thursday, while Dow Jones Industrial Average futures YMZ6, +0.37% rose 58 points, or 0.3%, to 18,276. Nasdaq-100 futures NQZ6, +0.39% gained 16.25 points, or 0.3%, to 4,866.25.
Shares of Encana Corp. (NYSE: ECA) opened at $9.24 yesterday and traded in a range between, $9.20 and $9.39, and last traded at $9.35, which is an increase of $0.24 over the previous closing price.
Encana Corp. (NYSE: ECA) now has a market cap of 7.95B.
The stock’s average daily volume is 13,959,700 shares out of a total float 768,462,000 and some 49,016,049 shares crossed the trading desk yesterday, higher than normal. Considerable volume aggregation by institutional investors may be on the horizon as the combination of significant expansions in trading volume and price growth can be determining factors.
As with all potential breakouts, investors look for volume to be at least 40%-50% higher than 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.
These instituitional investors have substantial teams of analysts that research thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
By spotting trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.
With that in mind, Encana Corp. (NYSE: ECA) now has a 50-day MA of $9.57 and 200-day MA of $7.78. It has traded in a 52-week range between $3.00 – 10.75 and today’s last price is 0.13% lower than the 52 week high of $10.75.
Earnings growth is a critical factor to consider when investing in stocks and investors identify companies that have grown their earnings by at least 25% for the past 3 years.
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