Enbridge (NYSE:ENB) Sees Unusually-High Trading Volume Following Analyst Upgrade

Key Points

• National Bank Financial upgraded Enbridge from “hold” to “strong buy,” driving unusually high trading volume. MarketBeat’s analyst consensus is “Moderate Buy,” with a $67 price target.
• Enbridge agreed to acquire Tallgrass Energy’s crude transportation business for approximately $2.55 billion, expanding its U.S. pipeline infrastructure and potential fee-based earnings.
• The company faces offsetting risks, including potential shareholder dilution from a roughly C$2.6 billion share offering and renewed regulatory pressure on its Line 5 pipeline in Michigan.

Enbridge Inc (NYSE:ENB - Get Free Report) TSE: ENB saw unusually-strong trading volume on Thursday after National Bank Financial upgraded the stock from a hold rating to a strong-buy rating. Approximately 3,179,014 shares changed hands during mid-day trading, a decline of 34% from the previous session's volume of 4,834,144 shares.The stock last traded at $48.2690 and had previously closed at $50.15.

Several other research firms have also recently issued reports on ENB. Canadian Imperial Bank of Commerce raised shares of Enbridge from a "neutral" rating to a "sector outperform" rating in a research report on Thursday, August 27th. Weiss Ratings reissued a "buy (b)" rating on shares of Enbridge in a report on Wednesday, August 19th. Wall Street Zen upgraded Enbridge from a "sell" rating to a "hold" rating in a research note on Sunday, July 12th. TD Securities reaffirmed a "hold" rating on shares of Enbridge in a report on Thursday, July 16th. Finally, US Capital Advisors raised Enbridge from a "hold" rating to a "moderate buy" rating in a research report on Thursday, August 20th. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $67.00.

Enbridge News Roundup

Here are the key news stories impacting Enbridge this week:

• Positive Sentiment: Analyst upgrade: National Bank Financial raised Enbridge from “hold” to “strong buy,” signaling increased confidence in the company’s valuation and stable, fee-based cash flows.
• Positive Sentiment: Tallgrass acquisition expands U.S. operations: Enbridge agreed to acquire Tallgrass Energy’s crude transportation business for approximately US$2.55 billion. The transaction includes a 75% interest in the Pony Express pipeline, which connects Rocky Mountain oil production with the Cushing, Oklahoma, storage hub. The deal strengthens Enbridge’s North American crude infrastructure portfolio and could provide additional long-term fee-based earnings. Enbridge to acquire Tallgrass Energy's crude transportation business for $2.55 billion
• Positive Sentiment: Organic infrastructure investment: Enbridge Gas Ohio began a $33 million pipeline project in Jackson Township, supporting regulated utility growth and system reliability. Enbridge Gas Ohio pipeline project
• Neutral Sentiment: CEO transition: Greg Ebel will retire as chief executive, with Michele Harradence set to succeed him. The orderly internal succession may limit disruption, though investors will watch whether the new CEO maintains Enbridge’s growth and capital-allocation strategy. Harradence to succeed Ebel as Enbridge president and CEO
• Negative Sentiment: Funding and execution concerns: Enbridge launched a roughly C$2.6 billion bought-deal share offering to help fund the Tallgrass transaction. The financing may dilute existing shareholders and adds near-term pressure while investors assess the acquisition’s returns.
• Negative Sentiment: Line 5 regulatory risk: Michigan Governor Gretchen Whitmer said the state is reconsidering permits and again urged Enbridge to shut down Line 5, renewing uncertainty around a strategically important pipeline and potential legal or operating costs. Whitmer presses Enbridge to shut down Line 5

Hedge Funds Weigh In On Enbridge

Several hedge funds have recently made changes to their positions in ENB. Triumph Capital Management acquired a new stake in shares of Enbridge in the 3rd quarter valued at about $26,000. Arlington Trust Co LLC increased its position in Enbridge by 114.6% during the second quarter. Arlington Trust Co LLC now owns 500 shares of the pipeline company's stock worth $27,000 after buying an additional 267 shares during the period. Turning Point Benefit Group Inc. purchased a new stake in Enbridge in the third quarter valued at approximately $28,000. Inspire Investing LLC purchased a new stake in Enbridge in the fourth quarter valued at approximately $29,000. Finally, Imprint Wealth LLC purchased a new stake in Enbridge in the third quarter valued at approximately $31,000. Hedge funds and other institutional investors own 54.60% of the company's stock.

Enbridge Price Performance

The firm has a market capitalization of $105.59 billion, a price-to-earnings ratio of 25.85, a P/E/G ratio of 5.99 and a beta of 0.57. The company has a fifty day moving average price of $52.88 and a two-hundred day moving average price of $53.94. The company has a quick ratio of 0.66, a current ratio of 0.72 and a debt-to-equity ratio of 1.69.

Enbridge (NYSE:ENB - Get Free Report) TSE: ENB last announced its 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 net margin of 7.20% and a return on equity of 11.17%. The business had revenue of $9.70 billion for the quarter, compared to analysts' expectations of $8.67 billion. During the same period in the previous year, the company posted $0.65 EPS. On average, equities research analysts expect that Enbridge Inc will post 2.11 EPS for the current fiscal year.

Enbridge Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, September 1st. Shareholders of record on Friday, August 14th were paid a $0.97 dividend. The ex-dividend date was Friday, August 14th. This represents a $3.88 dividend on an annualized basis and a yield of 8.0%. Enbridge's payout ratio is currently 147.06%.

Enbridge Company Profile

Enbridge Inc is a Canadian energy infrastructure company headquartered in Calgary, Alberta. Founded in 1949 as Interprovincial Pipe Line, the company has grown into one of North America's largest energy delivery businesses, operating primarily in Canada and the United States.

Enbridge's operations include crude oil and liquids pipelines, natural gas transmission and storage, and natural gas distribution and utility services. Its pipeline systems transport energy products from producing regions to refineries, export facilities, utilities and other customers.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.