Zacks Investment Research cut shares of Enbridge Inc (NYSE:ENB) (TSE:ENB) from a hold rating to a sell rating in a report issued on Tuesday, July 11th.
According to Zacks, “Enbridge’s debt load has increased significantly from the 2012 levels. Importantly, during first-quarter 2017, the midstream energy player’s long-term debt rose over 66%, while cash balance declined 7%. It is to be noted that as of Dec 31, 2016, Enbridge has long-term debt of C$40,594 million, as against cash balance of only C$2,117 million, reflecting weakness in the company’s financials. Also, credit rating agencies Standard and Poor’s Ratings Services (S&P) & Moody’s Investors Service (Moody’s) rated the company’s debt as BBB+ and Baa2 – among the lowest investment grade ratings. Any downgrade by the rating agencies will make the company’s bond non investment grade. Hence, it is a serious matter of concern as Enbridge will not be able to raise debt capital in favorable terms for financing growth projects if there is a downgrade in credit ratings.”
ENB has been the subject of a number of other reports. Wells Fargo & Company reiterated a market perform rating on shares of Enbridge in a research note on Friday, March 31st. J P Morgan Chase & Co reissued a neutral rating on shares of Enbridge in a report on Friday, June 23rd. Wolfe Research assumed coverage on shares of Enbridge in a report on Friday, May 12th. They issued a market perform rating and a $43.00 price target for the company. BidaskClub raised shares of Enbridge from a strong sell rating to a sell rating in a report on Saturday, June 24th. Finally, Morgan Stanley assumed coverage on shares of Enbridge in a report on Tuesday, May 2nd. They issued an equal weight rating and a $45.00 price target for the company. Two analysts have rated the stock with a sell rating, six have assigned a hold rating and eight have issued a buy rating to the company’s stock. Enbridge has a consensus rating of Hold and an average target price of $54.00.
Shares of Enbridge (ENB) traded down 1.64% during mid-day trading on Tuesday, hitting $40.83. The stock had a trading volume of 2,204,304 shares. The firm’s 50-day moving average price is $40.38 and its 200 day moving average price is $41.07. The stock has a market cap of $66.91 billion, a price-to-earnings ratio of 42.75 and a beta of 0.62. Enbridge has a 12-month low of $37.37 and a 12-month high of $45.77.
Enbridge (NYSE:ENB) (TSE:ENB) last released its quarterly earnings data on Thursday, August 3rd. The pipeline company reported $0.30 earnings per share for the quarter, missing analysts’ consensus estimates of $0.35 by $0.05. Enbridge had a net margin of 5.28% and a return on equity of 6.04%. The business had revenue of $8.26 billion during the quarter, compared to analysts’ expectations of $8.81 billion. During the same quarter in the prior year, the firm posted $0.50 earnings per share. Equities analysts forecast that Enbridge will post $1.64 EPS for the current fiscal year.
The firm also recently declared a quarterly dividend, which will be paid on Friday, September 1st. Shareholders of record on Tuesday, August 15th will be paid a $0.489 dividend. The ex-dividend date of this dividend is Friday, August 11th. This is an increase from Enbridge’s previous quarterly dividend of $0.33. This represents a $1.96 annualized dividend and a yield of 4.79%. Enbridge’s payout ratio is currently 173.79%.
Hedge funds have recently bought and sold shares of the company. Covington Investment Advisors Inc. increased its stake in Enbridge by 10.9% in the second quarter. Covington Investment Advisors Inc. now owns 5,595 shares of the pipeline company’s stock valued at $223,000 after buying an additional 550 shares in the last quarter. Commerce Bank increased its stake in Enbridge by 3.4% in the second quarter. Commerce Bank now owns 41,296 shares of the pipeline company’s stock valued at $1,644,000 after buying an additional 1,358 shares in the last quarter. Scout Investments Inc. increased its stake in Enbridge by 2.4% in the second quarter. Scout Investments Inc. now owns 469,268 shares of the pipeline company’s stock valued at $18,682,000 after buying an additional 10,935 shares in the last quarter. QCI Asset Management Inc. NY increased its stake in Enbridge by 5.3% in the second quarter. QCI Asset Management Inc. NY now owns 268,186 shares of the pipeline company’s stock valued at $10,676,000 after buying an additional 13,612 shares in the last quarter. Finally, OMERS ADMINISTRATION Corp increased its stake in Enbridge by 29.2% in the second quarter. OMERS ADMINISTRATION Corp now owns 11,388,871 shares of the pipeline company’s stock valued at $453,029,000 after buying an additional 2,573,451 shares in the last quarter. 63.83% of the stock is owned by institutional investors and hedge funds.
Enbridge Company Profile
Enbridge Inc is a Canada-based energy transportation and distribution company. The Company is engaged in delivering energy. It operates through five segments: Liquids Pipelines, Gas Distribution, Gas Pipelines and Processing, Green Power and Transmission, and Energy Services. Liquids Pipelines consists of common carrier and contract crude oil, natural gas liquids (NGL), and refined products pipelines and terminals, including Canadian Mainline, Lakehead Pipeline System, Mid-Continent and Gulf Coast and Regional Oil Sands System.
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