South Bow (NYSE:SOBO) Sets New 52-Week High Following Earnings Beat

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 reached a new 52-week high 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. The stock had previously closed at $26.96.

The company reported $0.42 earnings per share for the quarter, topping the consensus estimate of $0.38 by $0.04. The firm had revenue of $524.00 million for the quarter, compared to the consensus estimate of $449.00 million.

South Bow Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 15th. Shareholders of record on Monday, September 29th will be issued a $0.50 dividend. The ex-dividend date of this dividend is Monday, September 29th. This represents a $2.00 dividend on an annualized basis and a yield of 7.3%. South Bow's payout ratio is currently 108.11%.

Analyst Ratings Changes

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

Institutional Trading of South Bow

Several large investors have recently made changes to their positions in the company. BNP Paribas Financial Markets bought a new stake in South Bow during the fourth quarter worth $29,000. Louisbourg Investments Inc. bought a new stake in shares of South Bow during the 1st quarter worth $31,000. Tower Research Capital LLC TRC acquired a new stake in South Bow in the fourth quarter valued at about $35,000. Caitong International Asset Management Co. Ltd boosted its stake in South Bow by 150.0% in the second quarter. Caitong International Asset Management Co. Ltd now owns 1,550 shares of the company's stock valued at $40,000 after buying an additional 930 shares in the last quarter. Finally, Cubist Systematic Strategies LLC bought a new position in South Bow in the first quarter valued at about $85,000.

South Bow Stock Performance

The stock has a market cap of $5.70 billion and a price-to-earnings ratio of 14.80. The company has a quick ratio of 1.20, a current ratio of 1.29 and a debt-to-equity ratio of 2.20. The company has a 50 day simple moving average of $26.39 and a 200 day simple moving average of $25.57.

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.