Enbridge Inc $ENB Stake Increased by Bank of Nova Scotia

Key Points

• Bank of Nova Scotia increased its Enbridge stake by 58.4% in the second quarter, acquiring 3.3 million additional shares for a total holding of 8.95 million shares valued at approximately $485.5 million.
• Enbridge exceeded quarterly expectations, reporting $0.46 in EPS versus the $0.43 consensus and $9.70 billion in revenue. The company also declared a quarterly dividend of $0.97, representing a 7.7% annualized yield, though its payout ratio remains elevated at 147.1%.
• Analyst sentiment remains mixed: the stock has an average “Hold” rating and a $67 price target, while concerns include elevated leverage, potential Mainline System volume pressure and competition from rival pipelines.

Bank of Nova Scotia raised its stake in shares of Enbridge Inc (NYSE:ENB - Free Report) TSE: ENB by 58.4% during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 8,953,708 shares of the pipeline company's stock after acquiring an additional 3,300,996 shares during the quarter. Enbridge makes up 0.7% of Bank of Nova Scotia's portfolio, making the stock its 25th biggest position. Bank of Nova Scotia owned 0.41% of Enbridge worth $485,527,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds also recently added to or reduced their stakes in ENB. Elevation Point Wealth Partners LLC raised its stake in shares of Enbridge by 6.2% in the 2nd quarter. Elevation Point Wealth Partners LLC now owns 7,252 shares of the pipeline company's stock valued at $393,000 after purchasing an additional 423 shares in the last quarter. Strategic Wealth Partners Ltd. grew its stake in Enbridge by 9.3% in the second quarter. Strategic Wealth Partners Ltd. now owns 179,866 shares of the pipeline company's stock worth $9,751,000 after purchasing an additional 15,378 shares in the last quarter. Northwestern Mutual Wealth Management Co. grew its stake in Enbridge by 6.5% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 187,911 shares of the pipeline company's stock worth $10,187,000 after purchasing an additional 11,392 shares in the last quarter. Quantbot Technologies LP raised its stake in Enbridge by 35.5% during the second quarter. Quantbot Technologies LP now owns 95,853 shares of the pipeline company's stock valued at $5,196,000 after buying an additional 25,109 shares in the last quarter. Finally, Varma Mutual Pension Insurance Co lifted its holdings in Enbridge by 1.5% during the 2nd quarter. Varma Mutual Pension Insurance Co now owns 444,261 shares of the pipeline company's stock worth $24,083,000 after buying an additional 6,700 shares during the last quarter. 54.60% of the stock is owned by institutional investors and hedge funds.

Enbridge Stock Performance

Shares of NYSE ENB opened at $50.48 on Friday. The company has a quick ratio of 0.66, a current ratio of 0.72 and a debt-to-equity ratio of 1.69. The stock has a market capitalization of $110.25 billion, a price-to-earnings ratio of 26.99 and a beta of 0.58. The stock's fifty day simple moving average is $54.14 and its 200 day simple moving average is $53.99. Enbridge Inc has a 52-week low of $45.03 and a 52-week high of $58.45.

Enbridge (NYSE:ENB - Get Free Report) TSE: ENB last posted its quarterly earnings data on Friday, July 31st. The pipeline company reported $0.46 EPS for the quarter, beating analysts' consensus estimates of $0.43 by $0.03. Enbridge had a net margin of 7.20% and a return on equity of 11.17%. The company had revenue of $9.70 billion during the quarter, compared to analyst estimates of $8.67 billion. During the same period in the prior year, the firm earned $0.65 earnings per share. As a group, sell-side analysts forecast that Enbridge Inc will post 2.11 earnings per share for the current fiscal year.

Enbridge Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Friday, August 14th will be given a $0.97 dividend. This represents a $3.88 annualized dividend and a dividend yield of 7.7%. The ex-dividend date of this dividend is Friday, August 14th. Enbridge's dividend payout ratio (DPR) is 147.06%.

Analyst Ratings Changes

Several brokerages have recently commented on ENB. Weiss Ratings reiterated a "buy (b)" rating on shares of Enbridge in a research report on Wednesday. Wall Street Zen upgraded Enbridge from a "sell" rating to a "hold" rating in a research note on Sunday, July 12th. US Capital Advisors upgraded Enbridge from a "hold" rating to a "moderate buy" rating in a research note on Thursday. TD Securities reissued a "hold" rating on shares of Enbridge in a report on Thursday, July 16th. Finally, Royal Bank Of Canada increased their price objective on shares of Enbridge from $79.00 to $84.00 and gave the stock an "outperform" rating in a report on Monday, August 3rd. Five analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $67.00.

Enbridge News Summary

Here are the key news stories impacting Enbridge this week:

• Positive Sentiment: US Capital Advisors upgraded Enbridge from “hold” to “moderate buy,” signaling improved confidence in the company’s risk-reward profile at recent valuation levels. Zacks.com
• Positive Sentiment: US Capital Advisors raised its earnings forecasts across several periods. Estimates increased to $0.43 per share for Q3 2026, $0.61 for Q4 2026, $0.48 for Q2 2027, $0.46 for Q3 2027 and $0.69 for Q4 2027. Its FY2027 forecast rose to $2.41 per share from $2.24, above the current full-year consensus of $2.11. These revisions suggest expectations for stronger earnings momentum. MarketBeat analyst estimates
• Positive Sentiment: Enbridge’s long dividend-growth record remains attractive to income investors. The company has increased its dividend for 31 consecutive years, and the recent share-price pullback may improve its yield and valuation appeal. Enbridge dividend analysis
• Neutral Sentiment: Some analysis suggests Enbridge is fairly valued after generating roughly a 93% total return over five years, limiting the potential for near-term multiple expansion despite its infrastructure cash flows. Enbridge valuation analysis
• Negative Sentiment: Risks include weaker second-quarter results, elevated leverage and competition. Enbridge has a roughly CAD 41 billion secured growth backlog, but competing egress pipelines could pressure volumes on its Mainline System, which contributes about one-third of EBITDA. Debt-to-EBITDA of approximately 5.1 times also exceeds the company’s preferred range and leaves earnings more exposed to interest costs. Enbridge growth backlog and Mainline risks

Enbridge Profile

Enbridge Inc is a Calgary, Alberta–based energy infrastructure company that develops, owns and operates a diversified portfolio of energy transportation, distribution and generation assets. Its core activities include the operation of crude oil and liquids pipelines, natural gas transmission and distribution systems, and energy storage facilities. In addition to midstream transportation and storage, Enbridge has expanded into renewable power generation and energy transition projects, including wind, solar and utility-scale generation assets.

The company serves customers primarily in Canada and the United States and has interests in other international energy projects.

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