Thornburg Investment Management Inc. Purchases New Position in South Bow Corporation (NYSE:SOBO)

Key Points

• Thornburg Investment Management Inc. acquired a new stake in South Bow Corporation, purchasing 772,102 shares valued at approximately $19.7 million, representing 0.37% ownership.
• South Bow recently reported $0.47 EPS for the last quarter, exceeding analysts' expectations, although its revenue fell 8.5% year-over-year to $498 million.
• The company announced a quarterly dividend of $0.50, providing a yield of 7.76%, despite a payout ratio of 108.11%, indicating high returns to shareholders.

Thornburg Investment Management Inc. bought a new stake in shares of South Bow Corporation (NYSE:SOBO - Free Report) in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The fund bought 772,102 shares of the company's stock, valued at approximately $19,704,000. Thornburg Investment Management Inc. owned about 0.37% of South Bow at the end of the most recent quarter.

A number of other hedge funds have also added to or reduced their stakes in SOBO. FMR LLC purchased a new stake in South Bow during the 4th quarter valued at $461,249,000. Capital International Investors purchased a new stake in South Bow during the 4th quarter valued at $315,469,000. Price T Rowe Associates Inc. MD purchased a new stake in South Bow during the 4th quarter valued at $290,786,000. Vanguard Group Inc. purchased a new stake in shares of South Bow in the 4th quarter worth $206,467,000. Finally, Bank of Montreal Can purchased a new stake in shares of South Bow in the 4th quarter worth $126,068,000.

Analyst Ratings Changes

Several equities research analysts have recently commented on SOBO shares. Royal Bank Of Canada restated an "outperform" rating and issued a $38.00 price objective on shares of South Bow in a research note on Monday, May 19th. CIBC upped their price objective on South Bow from $25.00 to $26.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 22nd. Two research analysts have rated the stock with a sell rating, eight have issued a hold rating, one has assigned a buy rating and two have given a strong buy rating to the company's stock. According to MarketBeat, the stock has an average rating of "Hold" and an average target price of $28.80.

South Bow Price Performance

South Bow stock traded up $0.10 during mid-day trading on Friday, hitting $26.36. The stock had a trading volume of 428,660 shares, compared to its average volume of 565,670. The firm's 50 day moving average is $26.33 and its 200 day moving average is $25.46. South Bow Corporation has a one year low of $21.12 and a one year high of $27.60. The firm has a market capitalization of $5.49 billion and a P/E ratio of 14.25. The company has a current ratio of 1.29, a quick ratio of 1.20 and a debt-to-equity ratio of 2.20.

South Bow (NYSE:SOBO - Get Free Report) last released its quarterly earnings data on Thursday, May 15th. The company reported $0.47 EPS for the quarter, beating the consensus estimate of $0.42 by $0.05. The company had revenue of $498.00 million for the quarter, compared to the consensus estimate of $527.00 million. South Bow's revenue was down 8.5% on a year-over-year basis. On average, sell-side analysts forecast that South Bow Corporation will post 1.74 earnings per share for the current fiscal year.

South Bow Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, July 15th. Shareholders of record on Monday, June 30th were issued a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a dividend yield of 7.6%. The ex-dividend date of this dividend was Monday, June 30th. South Bow's dividend payout ratio 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.