Enbridge Inc $ENB Shares Sold by Hsbc Holdings PLC

Key Points

• HSBC Holdings cut its Enbridge stake by 77.4% in the second quarter, selling 80,173 shares and retaining 23,386 shares valued at approximately $1.27 million.
• Institutional investor sentiment was mixed: Deutsche Bank and Norges Bank initiated large positions, while Geode Capital, Connor Clark & Lunn, and Legal & General increased their holdings. Institutional investors collectively own 54.6% of Enbridge.
• Enbridge reported quarterly EPS of $0.46, exceeding estimates, and maintains a quarterly dividend of $0.97 per share, representing an annualized yield of about 8.1%. Analysts have a consensus “Moderate Buy” rating and an average price target of $67.

Hsbc Holdings PLC trimmed its holdings in Enbridge Inc (NYSE:ENB - Free Report) TSE: ENB by 77.4% in the second quarter, according to its most recent disclosure with the SEC. The fund owned 23,386 shares of the pipeline company's stock after selling 80,173 shares during the period. Hsbc Holdings PLC's holdings in Enbridge were worth $1,266,000 at the end of the most recent reporting period.

Several other hedge funds have also made changes to their positions in the business. Deutsche Bank AG acquired a new stake in Enbridge during the 2nd quarter worth approximately $1,850,502,000. Norges Bank acquired a new stake in shares of Enbridge during the fourth quarter worth $1,195,559,000. Geode Capital Management LLC grew its position in Enbridge by 7.1% in the 4th quarter. Geode Capital Management LLC now owns 21,421,826 shares of the pipeline company's stock valued at $1,045,172,000 after buying an additional 1,415,995 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. increased its stake in Enbridge by 18.4% in the 2nd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 20,624,547 shares of the pipeline company's stock valued at $1,117,353,000 after buying an additional 3,205,322 shares during the period. Finally, Legal & General Group Plc raised its position in Enbridge by 4.6% during the 4th quarter. Legal & General Group Plc now owns 19,677,864 shares of the pipeline company's stock worth $942,806,000 after buying an additional 858,323 shares during the last quarter. Institutional investors and hedge funds own 54.60% of the company's stock.

Enbridge Trading Down 1.0%

Shares of ENB opened at $47.75 on Friday. The company has a current ratio of 0.72, a quick ratio of 0.66 and a debt-to-equity ratio of 1.69. The firm's 50-day moving average is $52.64 and its two-hundred day moving average is $53.87. Enbridge Inc has a twelve month low of $45.03 and a twelve month high of $58.45. The firm has a market capitalization of $104.30 billion, a P/E ratio of 25.54, a PEG ratio of 5.66 and a beta of 0.57.

Enbridge (NYSE:ENB - Get Free Report) TSE: ENB last posted its quarterly earnings results on Friday, July 31st. The pipeline company reported $0.46 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.43 by $0.03. The company had revenue of $9.70 billion during the quarter, compared to the consensus estimate of $8.67 billion. Enbridge had a net margin of 7.20% and a return on equity of 11.17%. During the same period last year, the firm earned $0.65 EPS. On average, research analysts predict that Enbridge Inc will post 2.12 earnings per share for the current fiscal year.

Enbridge Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 1st. Investors of record on Friday, August 14th were issued a dividend of $0.97 per share. The ex-dividend date of this dividend was Friday, August 14th. This represents a $3.88 annualized dividend and a yield of 8.1%. Enbridge's payout ratio is currently 147.06%.

Analysts Set New Price Targets

A number of research analysts have recently issued reports on the stock. Canadian Imperial Bank of Commerce upgraded shares of Enbridge from a "neutral" rating to a "sector outperform" rating in a research note on Thursday, August 27th. TD Securities reaffirmed a "hold" rating on shares of Enbridge in a report on Thursday, July 16th. US Capital Advisors upgraded Enbridge from a "hold" rating to a "moderate buy" rating in a research report on Thursday, August 20th. National Bank Financial upgraded Enbridge from a "hold" rating to a "strong-buy" rating in a research report on Wednesday. Finally, Weiss Ratings reissued a "buy (b)" rating on shares of Enbridge in a research note on Wednesday, August 19th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $67.00.

Key Headlines Impacting Enbridge

Here are the key news stories impacting Enbridge this week:

• Positive Sentiment: Enbridge agreed to acquire Tallgrass Energy’s crude transportation business for approximately US$2.55 billion. The transaction includes a 75% interest in the Pony Express pipeline, as well as storage, terminaling and marketing assets connecting Rocky Mountain production with Cushing, Oklahoma. Enbridge expects the deal to increase distributable cash flow per share in the first full year, strengthening its U.S. crude infrastructure platform. Enbridge to Acquire Tallgrass’ Crude Transportation Business
• Positive Sentiment: National Bank Financial upgraded Enbridge from “hold” to “strong buy,” while CIBC reaffirmed its buy rating. These recommendations suggest some analysts view the recent selloff as an attractive entry point. CIBC Reaffirms Buy Rating
• Positive Sentiment: Jim Cramer described Enbridge as a relatively secure play during market volatility, citing its diversified infrastructure and generally defensive business profile. The company’s long dividend-growth record also remains a core attraction for income-focused investors. Jim Cramer Explains Why Enbridge Offers a Secure Play
• Neutral Sentiment: Enbridge launched a bought-deal offering of approximately C$2.6 billion through the sale of 38.9 million shares at C$66.85 each. The proceeds will help fund acquisitions and future growth, but the financing mix is a major focus for investors.
• Negative Sentiment: The equity offering increases the share count and raises near-term dilution concerns, overshadowing the strategic benefits of the Tallgrass acquisition. Investors may also be concerned about leverage and execution risk as Enbridge funds another large transaction.
• Negative Sentiment: Michigan Governor Gretchen Whitmer urged Enbridge to shut down Line 5 and reconsider alternatives, renewing regulatory and political uncertainty around the important Great Lakes pipeline. Whitmer Urges Enbridge to Shut Down Line 5

Enbridge Profile

Enbridge Inc is a Canadian energy infrastructure company headquartered in Calgary, Alberta. Founded in 1949 as Interprovincial Pipe Line, the company has grown into one of North America's largest energy delivery businesses, operating primarily in Canada and the United States.

Enbridge's operations include crude oil and liquids pipelines, natural gas transmission and storage, and natural gas distribution and utility services. Its pipeline systems transport energy products from producing regions to refineries, export facilities, utilities and other customers.

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