Ecopetrol S.A. [EC] is -19.85% lower this YTD. Is it still time to buy?

Ecopetrol S.A. [NYSE: EC] jumped around 0.21 points on Wednesday, while shares priced at $9.63 at the close of the session, up 2.23%. The company report on December 21, 2022 that Ecopetrol contracts a USD 1 billion loan with International Banks as part of its 2023 refinancing strategy.

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Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC, the “Company”) informs that, as part of its debt management strategy and refinancing of 2023 maturities, it entered into a USD 1.0 billion credit agreement with The Bank of Nova Scotia (with a participation of USD 700 million) and Sumitomo Mitsui Banking Corporation (with a participation of USD 300 million).

The loan has a term of five (5) years commencing on the signing date, subject to the following conditions: (i) principal amortizable in four equal semiannual installments during the last two years of the term of the agreement and (ii) a variable interest rate of SOFR + 210 basis points payable semiannually; among others.

Ecopetrol S.A. stock is now -19.85% down from its year-to-date (YTD) trading value. EC Stock saw the intraday high of $9.76 and lowest of $9.4885 per share. The company’s 52-week high price is 18.47, which means current price is +12.11% above from all time high which was touched on 04/18/22.

Compared to the average trading volume of 2.11M shares, EC reached a trading volume of 4430314 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about 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 $14.51 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 Equal-Weight, with their previous recommendation back on March 02, 2022. The new note on the price target was released on December 16, 2021, representing the official price target for Ecopetrol S.A. stock. Previously, the target price had yet another raise to $16.50, while JP Morgan analysts kept a Underweight rating on EC stock.

The Average True Range (ATR) for Ecopetrol S.A. is set at 0.39, with the Price to Sales ratio for EC stock in the period of the last 12 months amounting to 0.64. The Price to Book ratio for the last quarter was 1.15, with the Price to Cash per share for the same quarter was set at 1.56. Price to Free Cash Flow for EC in the course of the last twelve months was 6.02 with Quick ratio for the last quarter at 1.10.

How has EC stock performed recently?

Ecopetrol S.A. [EC] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 5.02. With this latest performance, EC shares dropped by -0.21% in over the last four-week period, additionally sinking by -4.52% over the last 6 months – not to mention a drop of -20.53% 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 52.04, with the RSI for the last a single of trading hit 56.85, and the three-weeks RSI is set at 50.19 for Ecopetrol S.A. [EC]. The present Moving Average for the last 50 days of trading for this stock 9.68, while it was recorded at 9.24 for the last single week of trading, and 12.51 for the last 200 days.

Ecopetrol S.A. [EC]: Deeper insight into the fundamentals

Ecopetrol S.A.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.10 and a Current Ratio set at 1.30.

Earnings analysis for Ecopetrol S.A. [EC]

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%.

Insider trade positions for Ecopetrol S.A. [EC]

There are presently around $262 million, or 1.50% of EC stock, in the hands of institutional investors. The top three institutional holders of EC stocks are: BLACKROCK INC. with ownership of 5,145,205, which is approximately 6.153% of the company’s market cap and around 1.00% of the total institutional ownership; VANGUARD GROUP INC, holding 2,984,353 shares of the stock with an approximate value of $28.74 million in EC stocks shares; and FISHER ASSET MANAGEMENT, LLC, currently with $16.04 million in EC stock with ownership of nearly -2.873% of the company’s market capitalization.

Positions in Ecopetrol S.A. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 73 institutional holders increased their position in Ecopetrol S.A. [NYSE:EC] by around 5,749,542 shares. Additionally, 60 investors decreased positions by around 8,123,151 shares, while 12 investors held positions by with 13,297,372 shares. The mentioned changes placed institutional holdings at 27,170,065 shares, according to the latest SEC report filing. EC stock had 25 new institutional investments in for a total of 1,984,159 shares, while 21 institutional investors sold positions of 5,908,369 shares during the same period.


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