Capital Group Private Client Services Inc. Sells 106,437 Shares of South Bow Corporation $SOBO

Key Points

• Capital Group Private Client Services cut its stake in South Bow by 47.6% in Q3, selling 106,437 shares and leaving it with 117,307 shares (about 0.06% of the company) valued at $3.319 million.
• South Bow announced a quarterly dividend of $0.50 per share (annualized $2.00) for a 6.1% yield, with an ex-dividend date of March 31 and payment on April 15; the payout ratio is 96.15%.
• South Bow beat estimates last quarter with $0.61 EPS vs. $0.40 expected and $503M revenue, while analysts hold an average rating of "Hold" and a consensus price target of $30.43 (3 Buy, 7 Hold, 3 Sell).

Capital Group Private Client Services Inc. trimmed its stake in shares of South Bow Corporation (NYSE:SOBO - Free Report) by 47.6% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 117,307 shares of the company's stock after selling 106,437 shares during the period. Capital Group Private Client Services Inc. owned approximately 0.06% of South Bow worth $3,319,000 at the end of the most recent reporting period.

Several other hedge funds have also modified their holdings of SOBO. EverSource Wealth Advisors LLC boosted its position in South Bow by 157.3% in the 3rd quarter. EverSource Wealth Advisors LLC now owns 1,055 shares of the company's stock valued at $30,000 after buying an additional 645 shares during the last quarter. Northwestern Mutual Wealth Management Co. raised its position in shares of South Bow by 1,993.8% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 1,340 shares of the company's stock worth $35,000 after acquiring an additional 1,276 shares during the last quarter. Cornerstone Planning Group LLC raised its position in shares of South Bow by 11,672.7% during the third quarter. Cornerstone Planning Group LLC now owns 2,590 shares of the company's stock worth $73,000 after acquiring an additional 2,568 shares during the last quarter. Cubist Systematic Strategies LLC acquired a new position in shares of South Bow during the first quarter valued at $85,000. Finally, Mondrian Investment Partners LTD acquired a new position in shares of South Bow during the third quarter valued at $102,000.

South Bow Stock Down 1.0%

South Bow stock opened at $33.04 on Wednesday. The company's 50 day simple moving average is $29.16 and its 200 day simple moving average is $28.00. South Bow Corporation has a fifty-two week low of $21.16 and a fifty-two week high of $34.01. The firm has a market capitalization of $6.88 billion, a price-to-earnings ratio of 15.89 and a beta of 0.29. The company has a debt-to-equity ratio of 2.19, a current ratio of 1.36 and a quick ratio of 1.28.

South Bow (NYSE:SOBO - Get Free Report) last issued its earnings results on Thursday, March 5th. The company reported $0.61 EPS for the quarter, beating the consensus estimate of $0.40 by $0.21. The firm had revenue of $503.00 million during the quarter, compared to the consensus estimate of $500.57 million. South Bow had a net margin of 21.80% and a return on equity of 15.69%. The business's quarterly revenue was up 3.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.54 earnings per share. As a group, sell-side analysts anticipate that South Bow Corporation will post 1.74 EPS for the current year.

South Bow Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 15th. Shareholders of record on Tuesday, March 31st will be paid a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a yield of 6.1%. The ex-dividend date of this dividend is Tuesday, March 31st. South Bow's payout ratio is presently 96.15%.

Analyst Upgrades and Downgrades

A number of analysts recently commented on the company. Weiss Ratings upgraded South Bow from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Friday, February 20th. Scotiabank upped their target price on shares of South Bow from $30.00 to $34.00 and gave the company a "sector perform" rating in a research report on Friday, March 6th. Barclays raised their target price on shares of South Bow from $27.00 to $33.00 and gave the company an "equal weight" rating in a research note on Monday. Royal Bank Of Canada reissued an "outperform" rating on shares of South Bow in a research note on Monday, November 17th. Finally, National Bank Financial increased their price objective on shares of South Bow from $27.00 to $29.00 and gave the company a "sector perform" rating in a report on Wednesday, December 17th. Three equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $30.43.

About South Bow

South Bow Corp is a strategic liquids pipeline company. It is a new liquids-focused midstream infrastructure company. South Bow Corp is based in Canada.

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