South Bow (NYSE:SOBO) Reaches New 52-Week High After Better-Than-Expected Earnings

Key Points

• South Bow Corporation (NYSE:SOBO) reached a new 52-week high of $28.04 following a strong earnings report, posting $0.42 earnings per share, exceeding expectations of $0.38.
• The company also declared a quarterly dividend of $0.50, which translates to an annual yield of 7.3% despite a high dividend payout ratio of 108.11%.
• Analysts have mixed views on the stock with an average rating of "Hold" and a consensus price target of $28.80, while some hedge funds recently established new stakes in South Bow.

South Bow Corporation (NYSE:SOBO - Get Free Report)'s share price hit a new 52-week high during trading on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $28.04 and last traded at $27.35, with a volume of 95239 shares traded. The stock had previously closed at $26.96.

The company reported $0.42 earnings per share for the quarter, beating analysts' consensus estimates of $0.38 by $0.04. The business had revenue of $524.00 million during the quarter, compared to analysts' expectations of $449.00 million.

South Bow Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 15th. Stockholders of record on Monday, September 29th will be given a $0.50 dividend. This represents a $2.00 annualized dividend and a dividend yield of 7.2%. The ex-dividend date is Monday, September 29th. South Bow's dividend payout ratio is currently 108.11%.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on SOBO shares. Royal Bank Of Canada reiterated an "outperform" rating on shares of South Bow in a research note on Friday. CIBC increased their price target on South Bow from $25.00 to $26.00 and gave the company a "neutral" rating in a report on Tuesday, July 22nd. Finally, National Bankshares increased their price target on South Bow from $25.00 to $26.00 and gave the company a "sector perform" rating in a report on Friday. Two research analysts have rated the stock with a sell rating, eight have assigned a hold rating, one has issued a buy rating and two have given a strong buy rating to the stock. According to MarketBeat, the company presently has an average rating of "Hold" and an average price target of $29.00.

Institutional Trading of South Bow

Institutional investors and hedge funds have recently made changes to their positions in the stock. LPL Financial LLC acquired a new stake in South Bow in the 4th quarter valued at approximately $563,000. JPMorgan Chase & Co. bought a new position in South Bow during the 4th quarter valued at $4,085,000. Alliancebernstein L.P. bought a new position in South Bow during the 4th quarter valued at $4,791,000. Geode Capital Management LLC bought a new position in South Bow during the 4th quarter valued at $4,803,000. Finally, Wells Fargo & Company MN bought a new position in South Bow during the 4th quarter valued at $489,000.

South Bow Trading Up 1.9%

The business has a 50 day simple moving average of $26.39 and a 200-day simple moving average of $25.58. The company has a debt-to-equity ratio of 2.19, a quick ratio of 1.20 and a current ratio of 1.28. The stock has a market capitalization of $5.81 billion and a P/E ratio of 15.15.

South Bow Company Profile

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.