Ecopetrol S.A. [NYSE: EC] price surged by 2.42 percent to reach at $0.36. The company report on July 2, 2021 that Ecopetrol reports the incorporation of two new subsidiaries that will be part of the Ecopetrol Group.
Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) informs that it has concluded the incorporation of Ecopetrol Singapore Pte Ltd., a company in which it will directly own 100% of its share capital. In turn, the aforementioned company will own 100% of the share capital of Ecopetrol Trading Asia Pte Ltd., whose main purpose will be the international commercialization of crude and refined products of the Ecopetrol Group and of third parties in Asia. Both companies will be domiciled in Singapore.
The two companies will be part of the Ecopetrol Group and will have paid-in share capital in accordance with the regulatory requirements of their jurisdiction of incorporation. Ecopetrol Trading Asia Pte Ltd. will be incorporated days after the establishment of Ecopetrol Singapore Pte Ltd. and it is expected to start operations in the first quarter of 2022, after completing the pre-operational stage.
A sum of 849339 shares traded at recent session while its average daily volume was at 982.85K shares. Ecopetrol S.A. shares reached a high of $15.345 and dropped to a low of $14.64 until finishing in the latest session at $15.22.
The one-year EC stock forecast points to a potential downside of -2.15. The average equity rating for EC stock is currently 2.50, trading closer to a bullish pattern in the stock market.
Guru’s Opinion on Ecopetrol S.A. [EC]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for EC shares is $14.90 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on EC stock is a recommendation set at 2.50. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Morgan Stanley have made an estimate for Ecopetrol S.A. shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on March 15, 2021. The new note on the price target was released on March 15, 2021, representing the official price target for Ecopetrol S.A. stock. Previously, the target price had yet another drop from $15 to $11, while JP Morgan kept a Underweight rating on EC stock. On January 06, 2021, analysts increased their price target for EC shares from 14 to 15.
The Average True Range (ATR) for Ecopetrol S.A. is set at 0.42, with the Price to Sales ratio for EC stock in the period of the last 12 months amounting to 2.24. The Price to Book ratio for the last quarter was 2.21, with the Price to Cash per share for the same quarter was set at 0.95.
EC Stock Performance Analysis:
Ecopetrol S.A. [EC] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 2.56. With this latest performance, EC shares gained by 18.35% in over the last four-week period, additionally plugging by 17.89% over the last 6 months – not to mention a rise of 33.74% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for EC stock in for the last two-week period is set at 73.90, with the RSI for the last a single of trading hit 78.34, and the three-weeks RSI is set at 69.80 for Ecopetrol S.A. [EC]. The present Moving Average for the last 50 days of trading for this stock 12.89, while it was recorded at 14.74 for the last single week of trading, and 12.24 for the last 200 days.
Insight into Ecopetrol S.A. Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and Ecopetrol S.A. [EC] shares currently have an operating margin of +14.08 and a Gross Margin at +24.09. Ecopetrol S.A.’s Net Margin is presently recorded at +3.30.
Return on Total Capital for EC is now 7.16, given the latest momentum, and Return on Invested Capital for the company is 1.84. Return on Equity for this stock inclined to 3.11, with Return on Assets sitting at 1.23. When it comes to the capital structure of this company, Ecopetrol S.A. [EC] has a Total Debt to Total Equity ratio set at 89.70. Additionally, EC Total Debt to Total Capital is recorded at 47.29, with Total Debt to Total Assets ending up at 33.52. Long-Term Debt to Equity for the company is recorded at 80.25, with the Long-Term Debt to Total Capital now at 42.30.
Reflecting on the efficiency of the workforce at the company, Ecopetrol S.A. [EC] managed to generate an average of $112,538,467 per employee. Receivables Turnover for the company is 7.07 with a Total Asset Turnover recorded at a value of 0.37.Ecopetrol S.A.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.00 and a Current Ratio set at 1.40.
EC Stock EPS
The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for EC. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Ecopetrol S.A. go to -13.00%.
Ecopetrol S.A. [EC] Insider Position Details
There are presently around $498 million, or 1.80% of EC stock, in the hands of institutional investors. The top three institutional holders of EC stocks are: RENAISSANCE TECHNOLOGIES LLC with ownership of 5,185,514, which is approximately -19.641% of the company’s market cap and around 1.00% of the total institutional ownership; BARROW HANLEY MEWHINNEY & STRAUSS LLC, holding 3,297,122 shares of the stock with an approximate value of $50.18 million in EC stocks shares; and BLACKROCK INC., currently with $36.17 million in EC stock with ownership of nearly 61.668% of the company’s market capitalization.
Positions in Ecopetrol S.A. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 83 institutional holders increased their position in Ecopetrol S.A. [NYSE:EC] by around 6,085,530 shares. Additionally, 54 investors decreased positions by around 7,202,266 shares, while 8 investors held positions by with 19,423,065 shares. The mentioned changes placed institutional holdings at 32,710,861 shares, according to the latest SEC report filing. EC stock had 31 new institutional investments in for a total of 2,784,281 shares, while 16 institutional investors sold positions of 852,241 shares during the same period.