Vanguard Group Inc. Boosts Stake in South Bow Corporation $SOBO

Key Points

• Vanguard Group increased its stake in South Bow by 1.4% in the fourth quarter, bringing its holdings to 8.67 million shares worth about $238.4 million, or roughly 4.16% of the company.
• South Bow reported Q1 earnings that missed estimates, posting $0.44 per share versus the expected $0.46, while revenue of $491.0 million was also slightly below forecasts.
• The company declared a quarterly dividend of $0.50 per share, implying an annualized yield of about 5.7% to 5.8%, and it has also begun work to secure permits for its Prairie Connector pipeline project.

Vanguard Group Inc. increased its holdings in shares of South Bow Corporation (NYSE:SOBO - Free Report) by 1.4% during the fourth quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 8,667,365 shares of the company's stock after acquiring an additional 118,147 shares during the period. Vanguard Group Inc. owned approximately 4.16% of South Bow worth $238,387,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently modified their holdings of the company. American Century Companies Inc. boosted its position in South Bow by 467.7% during the third quarter. American Century Companies Inc. now owns 959,031 shares of the company's stock worth $27,137,000 after purchasing an additional 790,111 shares in the last quarter. Qube Research & Technologies Ltd increased its position in shares of South Bow by 485.9% in the third quarter. Qube Research & Technologies Ltd now owns 784,565 shares of the company's stock valued at $22,195,000 after buying an additional 650,648 shares in the last quarter. Two Sigma Investments LP increased its position in shares of South Bow by 421.9% in the third quarter. Two Sigma Investments LP now owns 770,910 shares of the company's stock valued at $21,809,000 after buying an additional 623,189 shares in the last quarter. Dimensional Fund Advisors LP raised its stake in shares of South Bow by 53.4% during the 3rd quarter. Dimensional Fund Advisors LP now owns 1,549,120 shares of the company's stock worth $43,818,000 after buying an additional 539,281 shares during the period. Finally, Quadrature Capital Ltd raised its stake in shares of South Bow by 669.4% during the 3rd quarter. Quadrature Capital Ltd now owns 467,000 shares of the company's stock worth $13,214,000 after buying an additional 406,302 shares during the period.

Analyst Ratings Changes

A number of equities research analysts recently issued reports on SOBO shares. Barclays lifted their price target on shares of South Bow from $27.00 to $33.00 and gave the company an "equal weight" rating in a research note on Monday, March 9th. BMO Capital Markets reaffirmed a "market perform" rating on shares of South Bow in a report on Monday, April 27th. TD Securities reiterated a "hold" rating on shares of South Bow in a research report on Friday, May 1st. Wall Street Zen downgraded shares of South Bow from a "hold" rating to a "sell" rating in a research report on Saturday. Finally, The Goldman Sachs Group started coverage on South Bow in a report on Monday, April 20th. They issued a "sell" rating and a $29.00 price objective on the stock. Three analysts have rated the stock with a Buy rating, eight have issued a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Reduce" and an average price target of $30.63.

Key Stories Impacting South Bow

Here are the key news stories impacting South Bow this week:

• Positive Sentiment: South Bow declared a quarterly dividend of 0.50 per share, implying an annualized yield of about 5.7%, which should appeal to income-focused investors. Dividend declaration article
• Positive Sentiment: The company said it is beginning efforts to secure required permits for its Prairie Connector pipeline project, a step that could support longer-term growth if the cross-border project advances. Permitting article
• Neutral Sentiment: Shareholders approved all resolutions at South Bow’s annual general meeting, indicating normal governance progress without a major surprise. AGM resolutions article
• Neutral Sentiment: Investors also watched for valuation commentary following Q1 earnings and continued progress on pipeline-related opportunities, but these items appear secondary to the earnings report itself. Valuation commentary article
• Negative Sentiment: South Bow’s Q1 report missed analyst estimates on earnings and slightly missed revenue expectations, with year-over-year declines in earnings and net income weighing on sentiment. Q1 earnings miss article

South Bow Price Performance

Shares of NYSE SOBO opened at $34.72 on Friday. The firm has a 50-day simple moving average of $33.18 and a 200-day simple moving average of $29.53. The company has a quick ratio of 1.43, a current ratio of 1.50 and a debt-to-equity ratio of 2.13. The stock has a market capitalization of $7.24 billion, a price-to-earnings ratio of 17.10 and a beta of 0.11. South Bow Corporation has a 52 week low of $24.51 and a 52 week high of $35.56.

South Bow (NYSE:SOBO - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported $0.44 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.46 by ($0.02). South Bow had a net margin of 21.32% and a return on equity of 15.24%. The business had revenue of $491.00 million for the quarter, compared to analysts' expectations of $491.21 million. During the same period in the prior year, the company posted $0.47 EPS. The firm's revenue was up 1.0% on a year-over-year basis. On average, equities analysts predict that South Bow Corporation will post 1.88 earnings per share for the current fiscal year.

South Bow Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th will be given a dividend of $0.50 per share. The ex-dividend date is Tuesday, June 30th. This represents a $2.00 dividend on an annualized basis and a yield of 5.8%. South Bow's dividend payout ratio (DPR) is presently 98.52%.

South Bow Company 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.

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