Enbridge Sees Unusually High Options Volume (NYSE:ENB)

Key Points

• Enbridge Inc experienced a significant surge in options trading, with 20,216 put options acquired, increasing 1,036% from the average daily volume.
• The company reported earnings of $0.47 per share, surpassing expectations, but its revenue of $7.14 billion fell short of analyst predictions of $10.56 billion.
• Enbridge increased its quarterly dividend to $0.6839 per share, resulting in an annualized dividend yield of 5.7%, despite a payout ratio of 134.98%.

Enbridge Inc (NYSE:ENB - Get Free Report) TSE: ENB saw some unusual options trading on Wednesday. Investors acquired 20,216 put options on the company. This is an increase of 1,036% compared to the typical daily volume of 1,779 put options.

Enbridge Price Performance

ENB opened at $47.62 on Thursday. The company has a debt-to-equity ratio of 1.58, a quick ratio of 0.65 and a current ratio of 0.75. Enbridge has a 52-week low of $39.73 and a 52-week high of $50.54. The stock has a market capitalization of $103.84 billion, a PE ratio of 23.46, a price-to-earnings-growth ratio of 4.36 and a beta of 0.78. The stock's 50 day moving average price is $48.46 and its 200-day moving average price is $46.32.

Enbridge (NYSE:ENB - Get Free Report) TSE: ENB last posted its earnings results on Friday, August 1st. The pipeline company reported $0.47 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.41 by $0.06. Enbridge had a return on equity of 10.77% and a net margin of 10.11%.The firm had revenue of $7.14 billion for the quarter, compared to analysts' expectations of $10.56 billion. During the same period in the previous year, the firm earned $0.58 earnings per share. On average, equities research analysts predict that Enbridge will post 2.14 EPS for the current year.

Enbridge Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, September 1st. Stockholders of record on Friday, August 15th were paid a dividend of $0.6839 per share. This represents a $2.74 annualized dividend and a dividend yield of 5.7%. This is a boost from Enbridge's previous quarterly dividend of $0.68. The ex-dividend date of this dividend was Friday, August 15th. Enbridge's payout ratio is presently 134.98%.

Analysts Set New Price Targets

A number of brokerages have commented on ENB. Zacks Research cut Enbridge from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, September 17th. Argus lifted their price target on Enbridge from $50.00 to $54.00 and gave the stock a "buy" rating in a research note on Tuesday, August 12th. CIBC cut Enbridge from an "outperform" rating to a "neutral" rating in a research note on Thursday, October 9th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Enbridge in a research note on Wednesday, October 8th. Finally, Wall Street Zen cut Enbridge from a "hold" rating to a "sell" rating in a research note on Sunday, September 21st. Six analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $60.50.

Hedge Funds Weigh In On Enbridge

Several hedge funds have recently made changes to their positions in ENB. Dagco Inc. purchased a new position in shares of Enbridge during the first quarter valued at approximately $25,000. Garde Capital Inc. purchased a new position in shares of Enbridge during the first quarter valued at approximately $26,000. Whipplewood Advisors LLC boosted its position in shares of Enbridge by 112.4% during the second quarter. Whipplewood Advisors LLC now owns 582 shares of the pipeline company's stock valued at $26,000 after purchasing an additional 308 shares in the last quarter. Financial Gravity Asset Management Inc. bought a new stake in shares of Enbridge during the first quarter valued at approximately $28,000. Finally, Highline Wealth Partners LLC boosted its position in shares of Enbridge by 73.1% during the third quarter. Highline Wealth Partners LLC now owns 559 shares of the pipeline company's stock valued at $28,000 after purchasing an additional 236 shares in the last quarter. 54.60% of the stock is owned by hedge funds and other institutional investors.

About Enbridge

Enbridge Inc, together with its subsidiaries, operates as an energy infrastructure company. The company operates through five segments: Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation, and Energy Services. The Liquids Pipelines segment operates pipelines and related terminals to transport various grades of crude oil and other liquid hydrocarbons in Canada and the United States.

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