South Bow (NYSE:SOBO) Reaches New 52-Week High - Time to Buy?

Key Points

• South Bow shares reached a new 52-week high of $39.02 and were recently trading around $37.78, above their 50-day and 200-day moving averages.
• The company exceeded quarterly expectations, reporting $0.50 in EPS versus the $0.45 estimate and revenue of $546 million versus the $496.87 million consensus.
• Analysts remain cautious overall, with an average “Hold” rating and $33 target price, despite recent upgrades and a quarterly dividend of $0.50, representing a 5.3% yield.

South Bow Corporation (NYSE:SOBO - Get Free Report) shares reached a new 52-week high on Tuesday . The stock traded as high as $39.02 and last traded at $37.78, with a volume of 23806 shares changing hands. The stock had previously closed at $37.77.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on SOBO shares. Weiss Ratings raised shares of South Bow from a "buy (b+)" rating to a "buy (a-)" rating in a research report on Thursday, August 6th. Canadian Imperial Bank of Commerce boosted their target price on South Bow from $33.00 to $36.00 and gave the company a "neutral" rating in a research report on Tuesday, May 26th. Scotiabank upped their price target on South Bow from $36.00 to $39.00 and gave the stock a "sector perform" rating in a research note on Tuesday, July 21st. Wall Street Zen upgraded South Bow from a "sell" rating to a "hold" rating in a report on Saturday, July 18th. Finally, Royal Bank Of Canada reiterated an "outperform" rating on shares of South Bow in a report on Monday, August 10th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, eight have issued a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, South Bow currently has an average rating of "Hold" and an average target price of $33.00.

South Bow Stock Performance

The company has a market cap of $7.83 billion, a PE ratio of 16.99 and a beta of 0.15. The company has a quick ratio of 1.44, a current ratio of 1.52 and a debt-to-equity ratio of 2.15. The company has a 50-day moving average of $36.75 and a 200-day moving average of $35.07.

South Bow (NYSE:SOBO - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported $0.50 EPS for the quarter, beating analysts' consensus estimates of $0.45 by $0.05. The business had revenue of $546.00 million during the quarter, compared to analyst estimates of $496.87 million. South Bow had a return on equity of 15.84% and a net margin of 22.99%. As a group, analysts anticipate that South Bow Corporation will post 1.87 earnings per share for the current year.

South Bow Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Tuesday, September 29th will be paid a $0.50 dividend. The ex-dividend date is Tuesday, September 29th. This represents a $2.00 annualized dividend and a dividend yield of 5.3%. South Bow's dividend payout ratio is presently 90.50%.

Institutional Trading of South Bow

Several institutional investors and hedge funds have recently made changes to their positions in the company. Cibc World Market Inc. bought a new stake in South Bow in the 2nd quarter worth about $119,802,000. Connor Clark & Lunn Investment Management Ltd. bought a new position in shares of South Bow during the 2nd quarter worth approximately $97,830,000. Bank of America Corp DE purchased a new position in shares of South Bow in the 2nd quarter worth approximately $97,176,000. Legal & General Group Plc purchased a new position in shares of South Bow in the 2nd quarter worth approximately $62,849,000. Finally, The Manufacturers Life Insurance Company purchased a new position in shares of South Bow in the 2nd quarter worth approximately $41,216,000.

About South Bow

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.

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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source