Two Sigma Securities LLC Makes New $2.79 Million Investment in Enbridge Inc $ENB

Key Points

• Two Sigma Securities initiated a $2.79 million Enbridge position by purchasing 51,424 shares in the second quarter. Institutional investors collectively own 54.6% of the company.
• Enbridge exceeded quarterly expectations, reporting $0.46 in earnings per share versus the $0.43 consensus and $9.70 billion in revenue versus estimates of $8.67 billion.
• The company’s quarterly dividend is $0.97 per share, representing a 7.7% yield, while analysts maintain a “Moderate Buy” consensus rating with an average price target of $67.

Two Sigma Securities LLC bought a new position in shares of Enbridge Inc (NYSE:ENB - Free Report) TSE: ENB during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 51,424 shares of the pipeline company's stock, valued at approximately $2,788,000.

Several other institutional investors and hedge funds have also made changes to their positions in the company. Empowered Funds LLC raised its position in Enbridge by 24.2% in the 1st quarter. Empowered Funds LLC now owns 110,014 shares of the pipeline company's stock valued at $5,956,000 after purchasing an additional 21,442 shares during the last quarter. SCS Capital Management LLC purchased a new position in Enbridge during the 2nd quarter worth $9,204,000. RNC Capital Management LLC increased its stake in Enbridge by 1.6% in the fourth quarter. RNC Capital Management LLC now owns 1,446,697 shares of the pipeline company's stock valued at $69,196,000 after purchasing an additional 22,637 shares during the period. Western Wealth Management LLC raised its holdings in shares of Enbridge by 346.8% in the first quarter. Western Wealth Management LLC now owns 36,190 shares of the pipeline company's stock valued at $1,959,000 after buying an additional 28,091 shares during the last quarter. Finally, Energy Income Partners LLC purchased a new stake in shares of Enbridge in the second quarter valued at about $31,292,000. 54.60% of the stock is owned by hedge funds and other institutional investors.

Enbridge Stock Performance

NYSE ENB opened at $50.17 on Monday. The business has a 50 day moving average price of $53.64 and a 200 day moving average price of $54.03. The company has a market capitalization of $109.57 billion, a P/E ratio of 26.83 and a beta of 0.58. Enbridge Inc has a 1-year low of $45.03 and a 1-year high of $58.45. The company has a debt-to-equity ratio of 1.69, a current ratio of 0.72 and a quick ratio of 0.66.

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

Enbridge Announces Dividend

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

Analyst Ratings Changes

A number of analysts have weighed in on the company. Canadian Imperial Bank of Commerce raised Enbridge from a "neutral" rating to a "sector outperform" rating in a research report on Thursday. Royal Bank Of Canada boosted their target price on Enbridge from $79.00 to $84.00 and gave the company an "outperform" rating in a report on Monday, August 3rd. TD Securities restated a "hold" rating on shares of Enbridge in a research note on Thursday, July 16th. Raymond James Financial downgraded Enbridge from an "outperform" rating to a "market perform" rating in a report on Friday, July 31st. Finally, Wall Street Zen upgraded shares of Enbridge from a "sell" rating to a "hold" rating in a research report on Sunday, July 12th. Six research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $67.00.

Enbridge News Summary

Here are the key news stories impacting Enbridge this week:

• Positive Sentiment: Enbridge agreed to form a joint venture with KKR and Apollo to fund approximately C$2.7 billion in expansions of its Westcoast natural-gas pipeline system in British Columbia. Bringing in private capital should reduce Enbridge’s direct funding requirements while allowing it to retain an interest and benefit from long-term contracted infrastructure growth. Enbridge, KKR form joint venture to invest in Westcoast natural gas pipeline
• Positive Sentiment: The company is also buying Salt Creek Midstream’s crude-gathering assets in the Permian Basin for about US$600 million. The acquisition adds roughly 500 miles of pipeline infrastructure, expands Enbridge’s regional footprint and is expected to contribute contracted earnings and cash flow after closing. Enbridge buying Salt Creek Midstream's crude oil gathering business for $600M
• Positive Sentiment: Analysts continue to view Enbridge as an income-oriented investment, citing diversified, largely contracted cash flows and a dividend yield of approximately 5.6%. Its multiyear capital program and inflation-linked contracts may support stable cash generation, although they also limit exposure to commodity-price upside. Enbridge: A Reasonable Choice For Income And Capital Preservation
• Neutral Sentiment: Air monitoring following a Line 5 leak reportedly found no hazardous gas levels, reducing immediate public-health concerns. Air monitoring shows no hazardous levels of gases after leak on Enbridge’s Line 5
• Negative Sentiment: Wisconsin regulators have asked Enbridge to halt work on the Line 5 reroute after the leak, raising the possibility of construction delays, added costs and increased scrutiny. Wisconsin asks Enbridge to halt Line 5 reroute work after spill
• Negative Sentiment: Michigan Governor Gretchen Whitmer filed a brief challenging Enbridge’s right to operate Line 5 through the Straits of Mackinac, describing the pipeline as a potential danger. The legal challenge adds long-term uncertainty around a strategically important asset and could increase regulatory, litigation and remediation risks. Whitmer responds to Enbridge lawsuit over Line 5 pipeline

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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