Enbridge (TSE:ENB) Share Price Breaks Below Two Hundred Day Moving Average - Should You Sell?

Key Points

• Enbridge shares fell below their 200-day moving average, trading as low as C$65.98 versus the C$74.34 average, with the latest price at C$66.58.
• Analysts remain broadly positive, with a consensus rating of “Moderate Buy” and an average price target of C$77.62, despite one analyst cutting its target to C$70.
• Enbridge offers a quarterly dividend of C$0.97, or C$3.88 annually, representing a 5.8% yield; however, its 147.68% payout ratio indicates the dividend exceeds reported earnings.

Shares of Enbridge Inc. (TSE:ENB - Get Free Report) NYSE: ENB passed below its 200-day moving average during trading on Monday. The stock has a 200-day moving average of C$74.34 and traded as low as C$65.98. Enbridge shares last traded at C$66.58, with a volume of 6,354,002 shares.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on the company. US Capital Advisors upgraded Enbridge from a "hold" rating to a "moderate buy" rating in a research note on Thursday, August 20th. ATB Cormark Capital Markets lifted their price target on shares of Enbridge from C$83.00 to C$84.00 and gave the stock an "outperform" rating in a research note on Tuesday, September 15th. Canadian Imperial Bank of Commerce upgraded shares of Enbridge from a "hold" rating to an "outperformer" rating and lifted their price target for the stock from C$77.00 to C$78.00 in a research note on Friday, August 28th. Scotiabank raised shares of Enbridge to a "strong-buy" rating in a report on Thursday, September 17th. Finally, Jefferies Financial Group reduced their price objective on shares of Enbridge from C$79.00 to C$70.00 in a research note on Tuesday, September 1st. Two analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of C$77.62.

Enbridge Price Performance

The stock has a market capitalization of C$145.42 billion, a P/E ratio of 25.71, a PEG ratio of 1.72 and a beta of 0.69. The company has a 50 day moving average of C$71.20 and a 200-day moving average of C$74.34. The company has a quick ratio of 0.44, a current ratio of 0.72 and a debt-to-equity ratio of 171.59.

Enbridge (TSE:ENB - Get Free Report) NYSE: ENB last released its earnings results on Friday, July 31st. The company reported C$0.63 earnings per share for the quarter. The firm had revenue of C$29.32 billion during the quarter. Enbridge had a net margin of 7.28% and a return on equity of 10.01%. Sell-side analysts predict that Enbridge Inc. will post 3.511912 EPS for the current year.

Enbridge Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 1st. Stockholders of record on Tuesday, September 1st were issued a $0.97 dividend. The ex-dividend date of this dividend was Friday, August 14th. This represents a $3.88 annualized dividend and a dividend yield of 5.8%. Enbridge's payout ratio is 147.68%.

Insider Transactions at Enbridge

In other Enbridge news, Director Gregory Lorne Ebel acquired 7,105 shares of the stock in a transaction that occurred on Monday, September 14th. The stock was acquired at an average price of C$66.85 per share, with a total value of C$474,969.25. Following the transaction, the director directly owned 589,721 shares in the company, valued at approximately C$39,422,848.85. This represents a 1.22% increase in their ownership of the stock. Also, insider Michele Eva Harradence acquired 7,105 shares of the company's stock in a transaction that occurred on Monday, September 14th. The shares were acquired at an average price of C$67.28 per share, for a total transaction of C$478,024.40. Following the purchase, the insider owned 87,467 shares of the company's stock, valued at C$5,884,779.76. This trade represents a 8.84% increase in their ownership of the stock. 0.10% of the stock is owned by corporate insiders.

About Enbridge

At Enbridge, we safely connect millions of people to the energy they rely on every day, fueling quality of life through our North American natural gas, oil and renewable power networks and our growing European offshore wind portfolio. We're investing in modern energy delivery infrastructure to sustain access to secure, affordable energy and building on more than a century of operating conventional energy infrastructure and two decades of experience in renewable power. We're advancing new technologies including hydrogen, renewable natural gas, and carbon capture and storage.

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