TCW Group Inc. Takes Position in South Bow Corporation (NYSE:SOBO)

Key Points

• TCW Group Inc. has initiated a new investment in South Bow Corporation (NYSE:SOBO), acquiring 71,000 shares valued at approximately $1.81 million.
• South Bow recently announced a quarterly dividend of $0.50 per share, translating to an annualized yield of 7.71%, despite a high dividend payout ratio of 108.11%.
• In its latest earnings report, South Bow reported earnings per share of $0.47, exceeding analysts' expectations, though revenue saw an 8.5% decline year-over-year.

TCW Group Inc. bought a new stake in South Bow Corporation (NYSE:SOBO - Free Report) in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund bought 71,000 shares of the company's stock, valued at approximately $1,812,000.

Several other hedge funds and other institutional investors also recently made changes to their positions in the company. Louisbourg Investments Inc. bought a new stake in shares of South Bow during the 1st quarter valued at approximately $31,000. BNP Paribas Financial Markets bought a new stake in shares of South Bow during the 4th quarter valued at approximately $29,000. Sit Investment Associates Inc. bought a new stake in shares of South Bow during the 4th quarter valued at approximately $34,000. Cetera Investment Advisers grew its holdings in shares of South Bow by 15.0% during the 1st quarter. Cetera Investment Advisers now owns 11,248 shares of the company's stock valued at $287,000 after purchasing an additional 1,466 shares during the last quarter. Finally, Tower Research Capital LLC TRC bought a new stake in shares of South Bow during the 4th quarter valued at approximately $35,000.

South Bow Trading Down 0.1%

Shares of NYSE SOBO traded down $0.02 during midday trading on Friday, reaching $26.24. The stock had a trading volume of 207,888 shares, compared to its average volume of 857,071. The firm has a market cap of $5.46 billion and a price-to-earnings ratio of 14.19. South Bow Corporation has a twelve month low of $21.12 and a twelve month high of $27.60. The company has a debt-to-equity ratio of 2.20, a quick ratio of 1.20 and a current ratio of 1.29. The company's 50 day moving average price is $26.33 and its 200 day moving average price is $25.44.

South Bow (NYSE:SOBO - Get Free Report) last issued its quarterly earnings results on Thursday, May 15th. The company reported $0.47 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.42 by $0.05. The firm had revenue of $498.00 million during the quarter, compared to analyst estimates of $527.00 million. The business's quarterly revenue was down 8.5% on a year-over-year basis. As a group, sell-side analysts expect that South Bow Corporation will post 1.74 EPS for the current year.

South Bow Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, July 15th. Investors of record on Monday, June 30th were given a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a dividend yield of 7.6%. The ex-dividend date was Monday, June 30th. South Bow's payout ratio is presently 108.11%.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on SOBO. Royal Bank Of Canada reissued an "outperform" rating and set a $38.00 target price on shares of South Bow in a report on Monday, May 19th. CIBC boosted their target price on shares of South Bow from $25.00 to $26.00 and gave the stock a "neutral" rating in a report on Tuesday, July 22nd. Two equities research analysts have rated the stock with a sell rating, eight have assigned a hold rating, one has given a buy rating and two have issued a strong buy rating to the stock. According to data from MarketBeat.com, South Bow currently has an average rating of "Hold" and a consensus price target of $28.80.

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.