Enbridge Target of Unusually High Options Trading (NYSE:ENB)

Key Points

• Enbridge Inc experienced a significant surge in options trading, with a 1,036% increase in put options on Wednesday, totaling 20,216 contracts.
• The company recently increased its quarterly dividend to $0.6839 per share, yielding 5.6%, despite maintaining a high dividend payout ratio of 134.98%.
• Analysts have shown bullish sentiment towards Enbridge, with upgrades from several firms leading to a consensus rating of "Moderate Buy" and a target price increase to $60.50.

Enbridge Inc (NYSE:ENB - Get Free Report) TSE: ENB was the recipient of unusually large options trading on Wednesday. Stock investors acquired 20,216 put options on the company. This represents an increase of 1,036% compared to the typical volume of 1,779 put options.

Analysts Set New Price Targets

Several equities analysts recently weighed in on ENB shares. Jefferies Financial Group raised shares of Enbridge from a "hold" rating to a "buy" rating in a research report on Wednesday, July 23rd. Zacks Research lowered shares of Enbridge from a "strong-buy" rating to a "hold" rating in a research note on Wednesday. National Bankshares restated a "sector perform" rating on shares of Enbridge in a research note on Tuesday, August 5th. Argus raised their price target on shares of Enbridge from $50.00 to $54.00 and gave the stock a "buy" rating in a research note on Tuesday, August 12th. Finally, Wall Street Zen upgraded shares of Enbridge from a "sell" rating to a "hold" rating in a research note on Saturday, September 13th. Six research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $60.50.

Enbridge Price Performance

NYSE:ENB traded up $0.37 during trading hours on Friday, hitting $49.49. The stock had a trading volume of 3,096,103 shares, compared to its average volume of 2,916,895. The company has a 50 day simple moving average of $47.14 and a two-hundred day simple moving average of $45.60. The company has a debt-to-equity ratio of 1.58, a current ratio of 0.75 and a quick ratio of 0.65. Enbridge has a one year low of $39.73 and a one year high of $49.55. The firm has a market capitalization of $107.93 billion, a price-to-earnings ratio of 24.38, a P/E/G ratio of 4.49 and a beta of 0.80.

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

Enbridge Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, September 1st. Investors of record on Friday, August 15th were given a $0.6839 dividend. This represents a $2.74 annualized dividend and a yield of 5.5%. This is a boost from Enbridge's previous quarterly dividend of $0.68. The ex-dividend date was Friday, August 15th. Enbridge's dividend payout ratio (DPR) is presently 134.98%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ENB. Dagco Inc. purchased a new position in Enbridge in the first quarter worth $25,000. Garde Capital Inc. bought a new stake in Enbridge in the first quarter worth $26,000. Whipplewood Advisors LLC lifted its stake in Enbridge by 112.4% in the second quarter. Whipplewood Advisors LLC now owns 582 shares of the pipeline company's stock worth $26,000 after purchasing an additional 308 shares during the last quarter. Financial Gravity Asset Management Inc. bought a new stake in Enbridge in the first quarter worth $28,000. Finally, Financial Gravity Companies Inc. bought a new stake in Enbridge in the second quarter worth $29,000. 54.60% of the stock is currently 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.