Ecopetrol (NYSE:EC) Raised to "Buy" at Wall Street Zen

Key Points

• Wall Street Zen upgraded Ecopetrol from “hold” to “buy,” but broader analyst sentiment remains cautious, with an average “Reduce” rating and a $13.54 target price versus the stock’s $16.59 opening price.
• Ecopetrol reported $0.86 in quarterly EPS on $11.72 billion in revenue, with an 11.46% net margin and 18.16% return on equity; analysts expect full-year EPS of $1.85.
• Institutional investors initiated several new positions, while investors continue to monitor the company’s new CEO, potential policy and capital-allocation changes, weaker profits, and an ongoing investor investigation.

Ecopetrol (NYSE:EC - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued to investors on Saturday, Wall Street Zen reports.

Other equities analysts have also issued research reports about the company. Zacks Research raised Ecopetrol from a "strong sell" rating to a "hold" rating in a research note on Friday, September 4th. UBS Group boosted their price target on Ecopetrol from $14.00 to $16.00 and gave the stock a "neutral" rating in a report on Friday, August 14th. Weiss Ratings raised shares of Ecopetrol from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday. Citigroup downgraded shares of Ecopetrol from a "buy" rating to a "neutral" rating and boosted their target price for the stock from $14.00 to $18.00 in a report on Wednesday, June 3rd. Finally, JPMorgan Chase & Co. raised their target price on shares of Ecopetrol from $11.00 to $13.00 and gave the company a "neutral" rating in a research note on Monday, June 1st. Seven equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Ecopetrol presently has an average rating of "Reduce" and an average target price of $13.54.

Ecopetrol Price Performance

NYSE EC opened at $16.59 on Friday. Ecopetrol has a 12 month low of $8.57 and a 12 month high of $18.38. The stock has a market cap of $34.12 billion, a price-to-earnings ratio of 8.78, a PEG ratio of 1.21 and a beta of 0.44. The company's 50 day moving average is $17.02 and its two-hundred day moving average is $15.44. The company has a current ratio of 1.55, a quick ratio of 1.30 and a debt-to-equity ratio of 0.93.

Ecopetrol (NYSE:EC - Get Free Report) last announced its quarterly earnings data on Wednesday, July 1st. The oil and gas company reported $0.86 earnings per share (EPS) for the quarter. Ecopetrol had a net margin of 11.46% and a return on equity of 18.16%. The firm had revenue of $11.72 billion during the quarter. As a group, research analysts anticipate that Ecopetrol will post 1.85 earnings per share for the current year.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Arrowstreet Capital Limited Partnership bought a new stake in Ecopetrol during the first quarter worth approximately $6,542,000. Renaissance Technologies LLC bought a new position in shares of Ecopetrol during the 1st quarter valued at approximately $3,583,000. Wealth High Governance Capital Ltda purchased a new stake in Ecopetrol during the 1st quarter valued at $2,417,000. Wealth High Governance Asset Management Ltda. bought a new stake in Ecopetrol in the first quarter worth $2,057,000. Finally, Public Employees Retirement System of Ohio purchased a new position in Ecopetrol during the first quarter worth $1,948,000.

Key Stories Impacting Ecopetrol

Here are the key news stories impacting Ecopetrol this week:

• Positive Sentiment: The CEO decision removes an overhang that had been weighing on market confidence. Gutiérrez Caballero’s appointment was unanimously approved by Ecopetrol’s board, providing near-term leadership certainty. Ecopetrol CEO appointment
• Positive Sentiment: Separate coverage highlighted approximately 35% second-quarter revenue growth, reinforcing the company’s operating momentum despite weaker profitability. Ecopetrol’s most recent reported quarter included $11.72 billion in revenue and $0.86 in earnings per share. Ecopetrol second-quarter revenue growth
• Neutral Sentiment: The new CEO’s background as a political ally may lead investors to watch closely for changes in capital allocation, energy policy, production strategy and government influence over Colombia’s state-controlled oil company. Ecopetrol chooses presidential ally as CEO
• Negative Sentiment: Recent reports said profits weakened, while an investor law firm continues investigating Ecopetrol. These developments could pressure valuation if they lead to concerns about earnings quality, governance or potential shareholder claims. Ecopetrol investor investigation

Ecopetrol Company Profile

Ecopetrol SA is an integrated energy company based in Colombia and one of the country's principal producers of oil and natural gas. Its activities include exploration and production of hydrocarbons, crude oil and fuel transportation, refining, petrochemicals, and the distribution and marketing of petroleum products and natural gas.

The company operates through a broad energy infrastructure network that includes pipelines, storage facilities, refineries, ports, and other midstream assets.

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