Ecopetrol S.A. (EC): What’s Inside the Story?

On Thursday, shares of Ecopetrol S.A. (NYSE:EC) marked $17.46 per share versus a previous $17.09 closing price. With having a 2.17% gain, an insight into the fundamental values of Ecopetrol S.A., investors would also find a great ally in the technical patterns of the stock movements showed in stock charts. EC showed a rise of 9.95% within its YTD performance, with highs and lows between $15.21 – $27.96 during the period of 52 weeks, compared to the simple moving average of -5.85% in the period of the last 200 days.

HSBC Securities equity researchers changed the status of Ecopetrol S.A. (NYSE: EC) shares from “Hold” to a “Buy” rating in the report published on September 12th, 2019. Other analysts, including Citigroup, also published their reports on EC shares. Citigroup repeated the rating from the previous report, marking EC under “Buy” rating, in the report published on May 8th, 2019. Additionally, EC shares got another “Neutral” rating from JP Morgan. On the other hand, Raymond James Upgrade the “Mkt Perform” rating for EC shares, as published in the report on October 22nd, 2018. JP Morgan seems to be going bullish on the price of EC shares, based on the price prediction for EC. Another “Sell” rating came from Citigroup.

Ecopetrol S.A. (EC) Analysis

The present dividend yield for EC owners is set at 0.08, marking the return investors will get regardless of the company’s performance in the upcoming period. However, in order for the company to be able to pay its dividends, just like it is the case with Ecopetrol S.A., the company needs to provide a healthy cash flow, currently at the value of 10.37. In addition, the growth of sales from quarter to quarter is recording -42.10%, hinting the company’s progress in the upcoming progress.

In order to gain a clear insight on the performance of Ecopetrol S.A. (EC) as it may occur in the future, there are more than several well-rounded types of analysis and research techniques, while equity is most certainly one of the more important indicators into the company’s growth and performance. In this case, you want to make sure that the return on the present equity of 21.60% is enough for you to make a profit out of your investment. You may also count in the quick ratio of the company, currently set at 1.00 so you would make sure that the company is able to cover the debts it may have, which can be easily seen in annual reports of the company.

Set to affect the volatility of a given stock, the average volume can also be a valuable indicator, while EC is currently recording an average of 617.13K in volumes. The volatility of the stock on monthly basis is set at 2.97%, while the weekly volatility levels are marked at 4.15%with 5.56% of gain in the last seven days. Additionally, long-term investors are predicting the target price of $18.22, indicating growth from the present price of $17.46, which can represent yet another valuable research and analysis points that can help you decide whether to invest in EC or pass.

What to Look for When Analyzing Ecopetrol S.A. Shares?

Ecopetrol S.A. (EC) is based in the Colombia and it represents one of the well-known company operating with Basic Materials sector. If you wish to compare EC shares with other companies under Electronic Equipment and Consumer Goods, a factor to note is the P/E value of 10.39 for Ecopetrol S.A., while the value 8.80 can represent an indicator in the future growth of the company in terms of investor’s expectations. The later value should have a steady growth rate, increasing and growing gradually, which serves the purpose of reliably showcasing the progress of the company. The value 1.68 is supported by the yearly ESP growth of 74.60%.

Besides from looking into the fundamentals, you should also note the number of people inside the company owning the shares, as the values should be in line with the expectations of investors. In that spirit, the present ownership of stocks inside the company is set at 1.00%, which can provide you with an insight of how involved executives are in owning shares of the company. In oppose to the executives’ share, the institutional ownership counts 2.80% of shares, carrying an equal significance as an indicator of value, as the presence of large investors may signal a strong company.

Are Institutional Investors Increasing Stakes in EC Shares?

At the present, 2.80% of EC shares are in the ownership of institutional investors.