Ecopetrol S.A. (NYSE: EC) – Suitable For Long Term Buy?


    Renaissance Technologies LLC recently announced the acquisition of new stake in Ecopetrol S.A. (NYSE:EC). The institutional investor has increased its shareholding in the Energy company by 8.15% to 8.46 million shares with purchase of 0.64 million shares. This fresh investment now brings its stake to 0.41% valued currently at $88.12 million. In addition, Barrow, Hanley, Mewhinney & Strau. raised its holdings by 0.82 million to 4.04 million shares. And The Vanguard Group, Inc. has lifted its position by 1.25% or 35015.0 shares – to 2.83 million shares.

    With over 0.52 million Ecopetrol S.A. (EC) shares trading Friday and a closing price of $11.43 on the day, the dollar volume was approximately $5.98 million. The shares have shown a positive weekly performance of 0.44% and its price on 07/10/20 gained nearly 2.33%. Currently, there are 2.06B common shares owned by the public and among those 221.63M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 14 analysts who have offered their price forecasts for EC have a consensus price objective of $12.70. The analysts have set the share’s price value over the next 12 months at a high of $16.00 and a low of $9.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Ecopetrol S.A. stock is 2.80 for the next 12 months. The average price target is 5.93% above its last price level and an upside to the estimated low will see the stock lose -27.0% over that period. But an upside of 28.56% will see the stock hit the forecast high price target while mean target price for the stock is $13.18.

    The top 3 mutual fund holders in Ecopetrol S.A. are Principal Investors – Overseas Fu, Vanguard Emerging Markets Stock I, and Vanguard Total International Stoc. Principal Investors – Overseas Fu owns 1.52 million shares of the company’s stock, all valued at over $15.83 million. Vanguard Emerging Markets Stock I sold 35722.0 shares to see its total holdings shrink to 1.36 million shares valued at over $14.21 million and representing 0.07% of the shares outstanding. Vanguard Total International Stoc now owns shares totaling to 0.05% of the shares outstanding.

    Shares of Ecopetrol S.A. (NYSE: EC) opened at $11.145, down -$0.03 from a prior closing price of $11.17. However, the script later closed the day at $11.43, up 2.33%. The company’s stock has a 5-day price change of 0.44% and -4.11% over the past three months. EC shares are trading -42.74% year to date (YTD), with the 12-month market performance down to -38.82% lower. It has a 12-month low price of $6.28 and touched a high of $20.95 over the same period. Currently, 0.52 million shares have been traded, compared to an average intraday trading volume of 1.18 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 1.20%, 3.85%, and -24.12% respectively.

    Institutional ownership of Ecopetrol S.A. (NYSE: EC) shares accounts for 2.30% of the company’s 2.06B shares outstanding. Mutual fund holders own 0.70%, while other institutional holders and individual stakeholders account for 1.57% and — respectively.

    It has a market capitalization of $22.70B and a beta (3y monthly) value of 1.79. The stock’s trailing 12-month PE ratio is 8.20, while the earnings-per-share (ttm) stands at $1.39. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.68% over the week and 3.87% over the month.

    Analysts forecast that Ecopetrol S.A. (EC) will achieve an EPS of $0.14 for the current quarter, $0.01 for the next quarter and $0.9 for 2021. The lowest estimate earnings-per-share for the quarter is $0.02 while analysts give the company a high EPS estimate of $0.24. Comparatively, EPS for the current quarter was $0.43 a year ago. Earnings per share for the fiscal year are expected to increase by 14.70%, and 80.65% over the next financial year. EPS should shrink at an annualized rate of -13.00% over the next five years, compared to 18.30% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 14 brokerage firm advisors rate Ecopetrol S.A. (EC) as a “Moderate Buy” at a consensus score of 2.80. Specifically, 6 Wall Street analysts polled rate the stock as a buy, while 7 of the 14 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the EC, a number of firms have released research notes about the stock. Citigroup stated their Neutral rating for the stock in a research note on June 09, 2020, with the firm’s price target at. Citigroup coverage for the Ecopetrol S.A. (EC) stock in a research note released on April 29, 2020 offered a Buy rating with a price target of. Citigroup was of a view on April 06, 2020 that the stock is Neutral, while Goldman gave the stock Buy rating on March 24, 2020, issuing a price target of $18- $12.40. Citigroup on their part issued Buy rating on March 16, 2020.


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