Enbridge Inc (NYSE:ENB) Short Interest Update

Key Points

• Enbridge’s short interest more than doubled to 69.8 million shares as of August 14, up 124.1% from July 30, representing about 3.2% of shares outstanding and 9.9 days to cover.
• Institutional ownership remains substantial at 54.6%, with major new positions from Deutsche Bank, Norges Bank, Ontario Teachers’ Pension Plan and Bank of New York Mellon.
• Analysts’ consensus is “Moderate Buy”, supported by Enbridge’s contracted infrastructure growth, recent acquisitions and dividend yield; however, Line 5 regulatory and legal disputes could create delays, costs and long-term uncertainty.

Enbridge Inc (NYSE:ENB - Get Free Report) TSE: ENB was the recipient of a large increase in short interest during the month of August. As of August 14th, there was short interest totaling 69,771,404 shares, an increase of 124.1% from the July 30th total of 31,138,217 shares. Based on an average daily volume of 7,081,580 shares, the days-to-cover ratio is presently 9.9 days. Approximately 3.2% of the shares of the company are short sold.

Hedge Funds Weigh In On Enbridge

Large investors have recently modified their holdings of the business. Deutsche Bank AG purchased a new stake in shares of Enbridge during the 2nd quarter valued at approximately $1,850,502,000. Norges Bank purchased a new position in Enbridge in the 4th quarter valued at approximately $1,195,559,000. Ontario Teachers Pension Plan Board purchased a new position in Enbridge in the 2nd quarter valued at approximately $467,782,000. Auto Owners Insurance Co raised its holdings in Enbridge by 4,683.0% during the 4th quarter. Auto Owners Insurance Co now owns 8,566,831 shares of the pipeline company's stock valued at $40,975,000 after acquiring an additional 8,387,721 shares during the period. Finally, Bank of New York Mellon Corp bought a new stake in Enbridge during the 2nd quarter valued at $412,627,000. Hedge funds and other institutional investors own 54.60% of the company's stock.

More Enbridge News

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

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on ENB. Wall Street Zen raised shares of Enbridge from a "sell" rating to a "hold" rating in a report on Sunday, July 12th. BMO Capital Markets restated a "market perform" rating on shares of Enbridge in a report on Monday, August 3rd. Scotiabank reaffirmed an "outperform" rating on shares of Enbridge in a research report on Tuesday, July 21st. Canadian Imperial Bank of Commerce upgraded shares of Enbridge from a "neutral" rating to a "sector outperform" rating in a research note on Thursday. Finally, Royal Bank Of Canada increased their target price on shares of Enbridge from $79.00 to $84.00 and gave the company an "outperform" rating in a research report on Monday, August 3rd. Six equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $67.00.

Enbridge Stock Performance

Shares of ENB opened at $50.17 on Friday. The firm has a market cap of $109.57 billion, a PE ratio of 26.83 and a beta of 0.58. The stock's fifty day moving average price is $53.64 and its two-hundred day moving average price is $54.00. 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 has a 1 year low of $45.03 and a 1 year high of $58.45.

Enbridge (NYSE:ENB - Get Free Report) TSE: ENB last issued its quarterly earnings results on Friday, July 31st. The pipeline company reported $0.46 EPS for the quarter, beating analysts' consensus estimates of $0.43 by $0.03. Enbridge had a return on equity of 11.17% and a net margin of 7.20%.The firm had revenue of $9.70 billion for the quarter, compared to analysts' expectations of $8.67 billion. During the same quarter in the prior year, the firm earned $0.65 EPS. On average, equities research analysts forecast that Enbridge will post 2.11 EPS for the current year.

Enbridge Announces Dividend

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

Enbridge Company 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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