Encana (NYSE:ECA) (TSE:ECA) announced that its Board of Directors has authorized a stock repurchase plan, which authorizes the company to buyback $400.00 million in shares on Thursday, February 15th, EventVestor reports. This buyback authorization authorizes the oil and gas company to purchase shares of its stock through open market purchases. Stock buyback plans are often a sign that the company’s board of directors believes its stock is undervalued.
Shares of Encana (ECA) traded up $0.14 during trading hours on Wednesday, hitting $11.10. The company’s stock had a trading volume of 8,360,000 shares, compared to its average volume of 9,200,000. Encana has a fifty-two week low of $8.01 and a fifty-two week high of $14.31. The stock has a market capitalization of $10,810.00, a price-to-earnings ratio of 9.33, a PEG ratio of 1.47 and a beta of 2.13. The company has a quick ratio of 1.37, a current ratio of 1.37 and a debt-to-equity ratio of 0.62.
Encana (NYSE:ECA) (TSE:ECA) last announced its earnings results on Thursday, February 15th. The oil and gas company reported $0.12 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.10 by $0.02. The business had revenue of $1.21 billion during the quarter, compared to analyst estimates of $1.06 billion. Encana had a return on equity of 6.25% and a net margin of 18.58%. analysts expect that Encana will post 0.74 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which will be paid on Thursday, March 29th. Investors of record on Thursday, March 15th will be issued a $0.015 dividend. The ex-dividend date is Wednesday, March 14th. This represents a $0.06 dividend on an annualized basis and a dividend yield of 0.54%. Encana’s payout ratio is 5.04%.
Several brokerages recently weighed in on ECA. AltaCorp Capital upgraded Encana from a “sector perform” rating to an “outperform” rating in a report on Wednesday, February 7th. Jefferies Group set a $17.00 target price on Encana and gave the stock a “buy” rating in a research report on Tuesday, January 30th. Societe Generale raised Encana from a “hold” rating to a “buy” rating and set a $15.00 target price for the company in a research report on Thursday, February 15th. They noted that the move was a valuation call. Morgan Stanley raised Encana from an “equal weight” rating to an “overweight” rating and raised their price objective for the company from $15.00 to $18.00 in a research report on Wednesday, January 24th. Finally, Desjardins raised Encana from a “hold” rating to a “buy” rating and set a $16.00 price objective for the company in a research report on Friday, January 12th. Three analysts have rated the stock with a sell rating, twenty-one have assigned a buy rating and one has given a strong buy rating to the stock. The company presently has a consensus rating of “Buy” and an average target price of $15.37.
In other Encana news, Director Howard John Mayson acquired 2,500 shares of Encana stock in a transaction that occurred on Thursday, March 1st. The stock was bought at an average price of $10.53 per share, with a total value of $26,325.00. Following the completion of the purchase, the director now directly owns 25,104 shares of the company’s stock, valued at approximately $264,345.12. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Suzanne P. Nimocks acquired 5,000 shares of Encana stock in a transaction that occurred on Wednesday, February 21st. The stock was acquired at an average cost of $10.62 per share, with a total value of $53,100.00. Following the purchase, the director now directly owns 10,600 shares of the company’s stock, valued at $112,572. The disclosure for this purchase can be found here. Insiders purchased 23,500 shares of company stock valued at $256,395 in the last quarter. 0.08% of the stock is owned by company insiders.
Encana Corporation is an energy producer that is focused on developing its multi-basin portfolio of natural gas, oil and natural gas liquids (NGLs) producing plays. The Company’s operations also include the marketing of natural gas, oil and NGLs. All of its reserves and production are located in North America.
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