Equitrans Midstream Corporation [NYSE:ETRN] shares are showing some interesting activity. The company’s daily low is at $8.40 as the high is reaching $8.90.
If readers are not familiar, Equitrans Midstream Corporation is in the Energy sector under the Oil & Gas Midstream industry. This week, we are watching the stock hit price per sales of 2.29 with an earning per share of -0.93.
As a reference point, the S&P 500 is trading 1.11% over the last 52 weeks, while ETRN stock is trading -39.61%.
Wait and see
Holding a Market Cap of $3.72 billion, Equitrans Midstream Corporation has seen a trading range over the last year of $3.75-$15.24.
For the last five days, ETRN is up from its last closing price. The average shares trading hands each day is 4.18M, with average 10-day volume coming in at 2.86 million.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for ETRN. When we apply the Elder Force Index to Equitrans Midstream Corporation, we are seeing an Elder Force Indicator number of 96466.72.
The recent performance of the stock is another area that can tell traders how to proceed. ETRN is presenting an interesting case. This can be seen in the Forward P/E ratio, which currently stands at 6.22. Moreover, the company’s enterprise value has gone from $10.10B to $7.40B quarter-over-quarter. Obviously, the company is heading in the wrong direction, but there are still opportunities for growth in the sector.
In the last quarter, ETRN made a profit of 175.3 million. Equitrans Midstream Corporation also saw quarter revenue growth year over year of 9.04%. In addition, the company has operating cash flow of $1.15 billion.
Looking at popular technical indicators, the company’s 5-day moving average is 8.41 compared to the 50-day moving average of 9.30. So, traders might want to tread carefully if they are going to bid.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. ETRN currently holds a 9-day RSI of 44.97%, while 100-day RSI stands at 47.33%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. ETRN’s 9-day MACD is 0.12 and the company’s 100-day MACD stands at -0.81.
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 22.59% by insiders and 116.09% by institutions. Regarding institutional holdings, Capital International Investors owns 8.46%, while the second top holder, Blackrock Inc., currently owns 8.26%.
Over the last six months, insiders have bought 45,000 with the most recent transaction from KARAM THOMAS F, Chairman and CEO, with a purchase at price 7.97 per share.
Overall, the recommended rating for ETRN is Moderate Buy. Currently, the company has 9 analysts watching the stock, and the average quarterly earnings estimate is 0.32. Quarterly revenue estimates are averaging 366.52M with the high estimate reaching 428.11M and the low at 341.1M.
To review, the current 1-year target estimate is sitting at 12.33, while the current price 8.47. Based on this, we expect the stock to rise considering the aforementioned fundamentals.