South Bow (NYSE:SOBO) Sees Unusually-High Trading Volume - Should You Buy?

Key Points

• South Bow’s trading volume surged 266% to 3.15 million shares, while the stock edged up to $34.06 from a prior close of $33.99.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $33.00. Ratings include four Buys, eight Holds, and three Sells.
• The company exceeded quarterly expectations with $0.50 EPS and $546 million in revenue, and announced a $0.50 quarterly dividend—$2.00 annualized—for a 5.9% yield.

South Bow Corporation (NYSE:SOBO - Get Free Report) shares saw strong trading volume on Monday. 3,149,468 shares traded hands during trading, an increase of 266% from the previous session's volume of 859,598 shares. The stock last traded at $34.0590 and had previously closed at $33.99.

Wall Street Analyst Weigh In

A number of analysts have commented on the stock. Weiss Ratings downgraded shares of South Bow from a "buy (a-)" rating to a "buy (b+)" rating in a report on Tuesday, September 8th. BMO Capital Markets restated a "market perform" rating on shares of South Bow in a research report on Monday, July 6th. National Bank Financial increased their price target on South Bow from $31.00 to $35.00 and gave the company a "sector perform" rating in a report on Monday, June 1st. Raymond James Financial assumed coverage on South Bow in a research report on Tuesday, June 9th. They set an "outperform" rating on the stock. Finally, Scotiabank boosted their price objective 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. Four research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $33.00.

South Bow Stock Down 0.1%

The company has a current ratio of 1.52, a quick ratio of 1.44 and a debt-to-equity ratio of 2.15. The company has a market capitalization of $7.09 billion, a price-to-earnings ratio of 15.37 and a beta of 0.14. The firm's fifty day simple moving average is $36.71 and its two-hundred day simple moving average is $35.66.

South Bow (NYSE:SOBO - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $0.50 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.45 by $0.05. The business had revenue of $546.00 million during the quarter, compared to the consensus estimate of $496.87 million. South Bow had a net margin of 22.99% and a return on equity of 15.84%. Sell-side analysts anticipate that South Bow Corporation will post 1.88 EPS for the current year.

South Bow Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Tuesday, September 29th will be paid a dividend of $0.50 per share. The ex-dividend date of this dividend is Tuesday, September 29th. This represents a $2.00 annualized dividend and a yield of 5.9%. South Bow's dividend payout ratio (DPR) is 90.50%.

Hedge Funds Weigh In On South Bow

Several large investors have recently modified their holdings of the business. Parallel Advisors LLC increased its position in shares of South Bow by 140.5% during the 1st quarter. Parallel Advisors LLC now owns 849 shares of the company's stock worth $28,000 after purchasing an additional 496 shares during the last quarter. Clearstead Advisors LLC boosted its stake in South Bow by 192.5% during the fourth quarter. Clearstead Advisors LLC now owns 2,150 shares of the company's stock worth $59,000 after buying an additional 1,415 shares during the period. EverSource Wealth Advisors LLC boosted its stake in South Bow by 78.2% during the first quarter. EverSource Wealth Advisors LLC now owns 1,893 shares of the company's stock worth $63,000 after buying an additional 831 shares during the period. Kelleher Financial Advisors acquired a new stake in shares of South Bow during the second quarter valued at about $68,000. Finally, Integrated Wealth Concepts LLC acquired a new stake in shares of South Bow during the second quarter valued at about $81,000.

South Bow Company Profile

South Bow Corporation is a North American crude oil transportation and storage company headquartered in Calgary, Alberta. The company owns and operates infrastructure that moves crude oil from producing regions in Western Canada to refining and export markets in the United States.

South Bow's principal asset is the Keystone Pipeline System, which connects oil supplies from the Western Canadian Sedimentary Basin with refineries and storage hubs in the U.S. Midwest and along the U.S. Gulf Coast.

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