Zacks Investment Research cut shares of Enbridge Inc (NYSE:ENB) (TSE:ENB) from a hold rating to a sell rating in a research report released 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.”
Other research analysts have also issued research reports about the company. Wells Fargo & Company reiterated a market perform rating on shares of Enbridge in a research report on Friday, March 31st. BidaskClub upgraded Enbridge from a strong sell rating to a sell rating in a research report on Saturday, June 24th. Morgan Stanley started coverage on Enbridge in a research report on Tuesday, May 2nd. They set an equal weight rating and a $45.00 price target for the company. J P Morgan Chase & Co restated a neutral rating on shares of Enbridge in a report on Friday, June 23rd. Finally, Wolfe Research started coverage on Enbridge in a report on Friday, May 12th. They issued a market perform rating and a $43.00 price objective for the company. Two equities research analysts have rated the stock with a sell rating, six have given a hold rating and eight have assigned a buy rating to the company. Enbridge has a consensus rating of Hold and an average price target of $54.00.
Enbridge (NYSE ENB) traded up 0.14% on Tuesday, reaching $39.47. 2,015,913 shares of the company traded hands. Enbridge has a 1-year low of $37.37 and a 1-year high of $45.77. The stock has a market capitalization of $64.96 billion, a price-to-earnings ratio of 31.96 and a beta of 0.62. The stock has a 50 day moving average of $40.65 and a 200-day moving average of $41.00.
Enbridge (NYSE:ENB) (TSE:ENB) last issued its quarterly earnings data on Thursday, August 3rd. The pipeline company reported $0.30 EPS for the quarter, missing the Zacks’ consensus estimate of $0.35 by $0.05. The company had revenue of $8.26 billion for the quarter, compared to the consensus estimate of $8.81 billion. Enbridge had a return on equity of 6.04% and a net margin of 5.28%. During the same quarter in the previous year, the company earned $0.50 earnings per share. On average, equities analysts anticipate that Enbridge will post $1.57 EPS for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Friday, September 1st. Investors of record on Tuesday, August 15th will be paid a dividend of $0.489 per share. This is an increase from Enbridge’s previous quarterly dividend of $0.33. The ex-dividend date of this dividend is Friday, August 11th. This represents a $1.96 annualized dividend and a yield of 4.96%. Enbridge’s dividend payout ratio is presently 173.79%.
A number of hedge funds have recently made changes to their positions in ENB. First Personal Financial Services acquired a new stake in shares of Enbridge during the first quarter valued at $102,000. Financial Architects Inc increased its stake in shares of Enbridge by 2,987.7% in the first quarter. Financial Architects Inc now owns 2,501 shares of the pipeline company’s stock valued at $105,000 after buying an additional 2,420 shares during the last quarter. Monroe Bank & Trust MI acquired a new stake in shares of Enbridge during the first quarter valued at $105,000. Kistler Tiffany Companies LLC purchased a new stake in shares of Enbridge during the first quarter worth approximately $109,000. Finally, Mascoma Wealth Management LLC purchased a new stake in shares of Enbridge during the first quarter worth approximately $111,000. Hedge funds and other institutional investors own 63.83% of the company’s stock.
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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