South Bow Corporation $SOBO Stake Decreased by CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT

Key Points

• Cushing Asset Management cut its South Bow stake by 17.5% in the third quarter, selling 150,000 shares and retaining 705,500 shares valued at approximately $23.4 million.
• Analyst sentiment remains mixed: South Bow has an average “Hold” rating and a consensus price target of $32.50, with Barclays downgrading the stock to “underweight” and lowering its target to $33.
• South Bow reported quarterly EPS of $0.50, exceeding estimates, and revenue of $546 million. The company also maintains a quarterly dividend of $0.50, equivalent to a 5.6% annualized yield.

CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT trimmed its position in shares of South Bow Corporation (NYSE:SOBO - Free Report) by 17.5% during the 3rd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 705,500 shares of the company's stock after selling 150,000 shares during the period. CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT owned approximately 0.34% of South Bow worth $23,373,000 at the end of the most recent quarter.

Other large investors have also recently added to or reduced their stakes in the company. Thornburg Investment Management Inc. grew its holdings in shares of South Bow by 2.4% during the 2nd quarter. Thornburg Investment Management Inc. now owns 3,721,332 shares of the company's stock worth $130,974,000 after purchasing an additional 88,457 shares in the last quarter. Cibc World Market Inc. bought a new stake in shares of South Bow during the second quarter valued at approximately $119,802,000. Dimensional Fund Advisors LP raised its stake in shares of South Bow by 24.1% in the first quarter. Dimensional Fund Advisors LP now owns 2,914,614 shares of the company's stock valued at $97,134,000 after purchasing an additional 565,787 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. acquired a new position in shares of South Bow in the second quarter valued at $97,830,000. Finally, Bank of America Corp DE acquired a new position in shares of South Bow in the second quarter valued at $97,176,000.

Analyst Ratings Changes

A number of research firms have weighed in on SOBO. BMO Capital Markets reiterated a "market perform" rating on shares of South Bow in a research note on Monday, July 6th. Weiss Ratings lowered shares of South Bow from a "buy (a-)" rating to a "buy (b+)" rating in a report on Tuesday, September 8th. Canadian Imperial Bank of Commerce dropped their price objective on shares of South Bow from $36.00 to $35.00 and set a "neutral" rating for the company in a research note on Thursday. Raymond James Financial reaffirmed an "outperform" rating on shares of South Bow in a report on Wednesday, October 14th. Finally, Barclays downgraded shares of South Bow from an "equal weight" rating to an "underweight" rating and reduced their price objective for the stock from $35.00 to $33.00 in a report on Friday, October 9th. Four analysts have rated the stock with a Buy rating, seven have given a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Hold" and an average target price of $32.50.

South Bow Stock Performance

South Bow stock opened at $35.66 on Tuesday. South Bow Corporation has a 12-month low of $25.01 and a 12-month high of $39.02. The stock has a 50-day simple moving average of $35.51 and a 200 day simple moving average of $34.16. The stock has a market capitalization of $7.44 billion, a price-to-earnings ratio of 16.14 and a beta of 0.22. The company has a quick ratio of 1.44, a current ratio of 1.52 and a debt-to-equity ratio of 2.15.

South Bow (NYSE:SOBO - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported $0.50 EPS for the quarter, beating the consensus estimate of $0.45 by $0.05. The business had revenue of $546.00 million for the quarter, compared to analysts' expectations of $496.87 million. South Bow had a net margin of 22.99% and a return on equity of 15.84%. On average, research analysts anticipate that South Bow Corporation will post 1.87 earnings per share for the current fiscal year.

South Bow Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 15th. Stockholders of record on Tuesday, September 29th were paid a $0.50 dividend. This represents a $2.00 annualized dividend and a dividend yield of 5.6%. The ex-dividend date of this dividend was Tuesday, September 29th. South Bow's dividend payout ratio (DPR) is 90.50%.

South Bow Company Profile

South Bow Corp. NYSE: SOBO is a liquids-focused energy infrastructure company headquartered in Calgary, Alberta. The company owns and operates crude oil transportation and storage assets that connect Canadian production regions with refineries, storage hubs and export markets in the United States.

South Bow's primary asset is the Keystone Pipeline System, which transports crude oil from Western Canada to destinations in the U.S. Midwest and along the U.S. Gulf Coast. The company also operates the Marketlink system, which moves crude from Cushing, Oklahoma, to the Gulf Coast, as well as Canadian pipeline assets serving oil sands and other production areas.

South Bow began operating as an independent publicly traded company in October 2024 following its separation from TC Energy.

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