Ecopetrol (NYSE:EC) Stock Price Down 5.3% - Here's Why

Key Points

• Ecopetrol shares fell 5.3% intraday to $13.38 on Tuesday, with about 1.45 million shares traded—roughly 58% below its average session volume.
• Analysts' consensus rating is "Reduce" with a $10.35 price target; the coverage consists of four Holds and one Sell after several recent upgrades and downgrades.
• The company announced an annual dividend of $0.6612 per share payable May 7 (ex-dividend Apr 29), cited as a 436.0% yield and a payout ratio of 86.55%.

Ecopetrol S.A. (NYSE:EC - Get Free Report) fell 5.3% during mid-day trading on Tuesday . The stock traded as low as $13.44 and last traded at $13.3780. 1,455,206 shares changed hands during trading, a decline of 58% from the average session volume of 3,460,813 shares. The stock had previously closed at $14.12.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on EC. Bradesco Corretora set a $12.00 price objective on shares of Ecopetrol and gave the company an "underperform" rating in a research report on Wednesday, February 4th. Weiss Ratings upgraded shares of Ecopetrol from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Tuesday, February 17th. HSBC upgraded shares of Ecopetrol to a "hold" rating in a research note on Thursday, March 12th. Finally, Wall Street Zen lowered shares of Ecopetrol from a "buy" rating to a "hold" rating in a research note on Sunday, March 22nd. Four analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Reduce" and a consensus price target of $10.35.

Ecopetrol Stock Performance

The company has a market cap of $27.50 billion, a P/E ratio of 11.24 and a beta of 0.49. The company's 50-day moving average is $13.34 and its two-hundred day moving average is $11.24. The company has a quick ratio of 1.30, a current ratio of 1.55 and a debt-to-equity ratio of 0.91.

Ecopetrol (NYSE:EC - Get Free Report) last posted its quarterly earnings results on Saturday, February 14th. The oil and gas company reported $0.20 earnings per share for the quarter. The company had revenue of $7.64 billion during the quarter. Ecopetrol had a net margin of 7.64% and a return on equity of 10.89%. Equities analysts predict that Ecopetrol S.A. will post 1.8 EPS for the current year.

Ecopetrol Announces Dividend

The firm also recently disclosed an annual dividend, which will be paid on Thursday, May 7th. Shareholders of record on Wednesday, April 29th will be issued a dividend of $0.6612 per share. The ex-dividend date of this dividend is Wednesday, April 29th. This represents a yield of 436.0%. Ecopetrol's dividend payout ratio is 86.55%.

Hedge Funds Weigh In On Ecopetrol

A number of large investors have recently modified their holdings of EC. Envestnet Asset Management Inc. bought a new position in shares of Ecopetrol in the second quarter valued at approximately $93,000. Marshall Wace LLP purchased a new stake in Ecopetrol in the second quarter valued at approximately $333,000. Jump Financial LLC purchased a new stake in Ecopetrol in the second quarter valued at approximately $324,000. AXA S.A. purchased a new stake in Ecopetrol in the second quarter valued at approximately $271,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in Ecopetrol by 9.4% in the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,190,268 shares of the oil and gas company's stock valued at $10,534,000 after purchasing an additional 102,505 shares in the last quarter.

About Ecopetrol

Ecopetrol SA NYSE: EC is Colombia's state-controlled integrated oil and gas company and the country's largest oil producer. The company's operations span the upstream, midstream and downstream segments of the hydrocarbon value chain, including exploration and production of crude oil and natural gas, refining of petroleum products, transportation and storage via pipeline networks, and the marketing and sale of fuels and petrochemical feedstocks. Ecopetrol serves domestic demand in Colombia and maintains a portfolio of international investments and partnerships across the Americas.

In upstream activities, Ecopetrol focuses on exploration and development of onshore and offshore fields to sustain and grow hydrocarbon production.

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