Analysts at Jefferies Group reiterated a Buy rating on shares of Encana Corp. (NYSE: ECA) in a reserach note to investors, making it one of the more closely watched stocks on Wall Street. With a rating of Buy on the stock, the company has a 52-week high of $10.75. The one-year price target of $10.96 is above the opening price of $9.23, causing a number of other analysts to issue statements on the stock recently. Usually, after analysts give a “reiterated rating” report on a stock, they will subsequently issue recurring updates, often followed by a price target change.
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.
Yesterday Encana Corp. (NYSE: ECA) shares last traded at $9.11, a drop of $0.75 over the previous closing price. Opening at $9.23, they fluctuated from $9.10 and $9.35 throughout the day.
Encana Corp. (NYSE: ECA) currently has a market cap of 7.74B.
The stock’s average daily volume is 13,330,500 shares out of a total float 768,462,000 and some 101,682,573 shares crossed the trading desk yesterday, 30 percent higher than normal. Significant expansions in trading volume and price growth together could signal excessive volume aggregation by institutional investors.
However, a single day of heavy buy side trading is not enough to affirm a trend. As such, market traders will continue to watch for institutional sponsorship as an indicator that financial institutions are moving forward.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain substantial teams of analysts researching thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
By tracking the activity of these professional investors—and the moving averages they affect— traders are able to make 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.
Earnings growth is a critical factor to look at when buying stocks and investors seek companies that have increased their earnings by at least 25% for 3 consecutive years.
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