Murchinson Ltd. Acquires Shares of 5,274,000 South Bow Corporation $SOBO

Key Points

• Murchinson Ltd. has made a significant investment of approximately $134.59 million in South Bow Corporation (NYSE:SOBO), acquiring 5,274,000 shares, which now constitutes about 7.7% of Murchinson's investment portfolio.
• South Bow Corporation has reported an EPS of $0.42 for the most recent quarter, surpassing expectations, and generated revenue of $524 million, indicating strong financial performance.
• The company has declared a quarterly dividend of $0.50 per share, with an annualized yield of 7.2%, despite a payout ratio exceeding 100%.

Murchinson Ltd. bought a new stake in shares of South Bow Corporation (NYSE:SOBO - Free Report) during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm bought 5,274,000 shares of the company's stock, valued at approximately $134,592,000. South Bow accounts for about 7.7% of Murchinson Ltd.'s investment portfolio, making the stock its 4th largest position. Murchinson Ltd. owned 2.53% of South Bow at the end of the most recent reporting period.

Other institutional investors have also added to or reduced their stakes in the company. BNP Paribas Financial Markets purchased a new position in South Bow during the 4th quarter valued at about $29,000. Louisbourg Investments Inc. purchased a new position in South Bow during the 1st quarter valued at about $31,000. Tower Research Capital LLC TRC purchased a new position in South Bow during the 4th quarter valued at about $35,000. Cubist Systematic Strategies LLC purchased a new position in South Bow during the 1st quarter valued at about $85,000. Finally, DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main purchased a new position in South Bow during the 4th quarter valued at about $97,000.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on SOBO. National Bankshares raised their price target on shares of South Bow from $25.00 to $26.00 and gave the company a "sector perform" rating in a report on Friday, August 8th. Royal Bank Of Canada restated an "outperform" rating on shares of South Bow in a report on Friday, August 8th. CIBC raised their price target on shares of South Bow from $25.00 to $26.00 and gave the company a "neutral" rating in a report on Tuesday, July 22nd. Finally, JPMorgan Chase & Co. restated an "underweight" rating and issued a $27.00 price target on shares of South Bow in a report on Thursday, August 21st. Two equities research analysts have rated the stock with a Strong Buy rating, one has issued a Buy rating, seven have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, South Bow presently has a consensus rating of "Hold" and an average target price of $28.80.

South Bow Stock Performance

SOBO stock traded up $0.08 during trading on Wednesday, reaching $27.76. The company had a trading volume of 1,006,787 shares, compared to its average volume of 818,273. The firm has a 50-day simple moving average of $26.91 and a 200-day simple moving average of $26.02. The company has a market cap of $5.78 billion and a price-to-earnings ratio of 15.00. The company has a debt-to-equity ratio of 2.19, a quick ratio of 1.20 and a current ratio of 1.28. South Bow Corporation has a twelve month low of $21.12 and a twelve month high of $28.22.

South Bow (NYSE:SOBO - Get Free Report) last released its earnings results on Wednesday, August 6th. The company reported $0.42 EPS for the quarter, topping analysts' consensus estimates of $0.38 by $0.04. The company had revenue of $524.00 million during the quarter, compared to analyst estimates of $449.00 million. As a group, sell-side analysts expect that South Bow Corporation will post 1.74 earnings per share for the current year.

South Bow Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 15th. Investors of record on Monday, September 29th will be paid a $0.50 dividend. The ex-dividend date is Monday, September 29th. This represents a $2.00 dividend on an annualized basis and a yield of 7.2%. South Bow's dividend payout ratio (DPR) is 108.11%.

South Bow Profile

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.