South Bow (NYSE:SOBO) Hits New 12-Month High - Still a Buy?

Key Points

• South Bow Corporation (NYSE:SOBO) reached a new 52-week high of $28.45 during trading, with analysts showing a general sentiment of "Hold" and a consensus price target of $28.80.
• The company reported earnings of $0.42 EPS, exceeding expectations, and declared a quarterly dividend of $0.50, which results in an annualized dividend yield of 7.1%.
• South Bow's market capitalization is $5.86 billion and the firm has a reported debt-to-equity ratio of 2.19, indicating significant leverage.

South Bow Corporation (NYSE:SOBO - Get Free Report) hit a new 52-week high during mid-day trading on Tuesday . The company traded as high as $28.45 and last traded at $28.41, with a volume of 214627 shares changing hands. The stock had previously closed at $27.97.

Analysts Set New Price Targets

A number of analysts recently issued reports on the company. CIBC upped their target price on South Bow from $25.00 to $26.00 and gave the company a "neutral" rating in a research report on Tuesday, July 22nd. National Bankshares lifted their target price on South Bow from $25.00 to $26.00 and gave the company a "sector perform" rating in a research note on Friday, August 8th. Royal Bank Of Canada reiterated an "outperform" rating on shares of South Bow in a research note on Friday, August 8th. Finally, JPMorgan Chase & Co. reiterated an "underweight" rating and issued a $27.00 target price on shares of South Bow in a research note on Thursday, August 21st. Two equities research analysts have rated the stock with a Strong Buy rating, one has given a Buy rating, seven have assigned a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $28.80.

South Bow Trading Up 0.6%

The firm has a market capitalization of $5.86 billion and a PE ratio of 15.21. The business has a 50 day moving average price of $27.24 and a 200-day moving average price of $26.15. The company has a current ratio of 1.28, a quick ratio of 1.20 and a debt-to-equity ratio of 2.19.

South Bow (NYSE:SOBO - Get Free Report) last issued its earnings results on Wednesday, August 6th. The company reported $0.42 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.38 by $0.04. The business had revenue of $524.00 million for the quarter, compared to analysts' expectations of $449.00 million. Analysts expect that South Bow Corporation will post 1.74 earnings per share for the current year.

South Bow Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 15th. Investors of record on Monday, September 29th will be issued a $0.50 dividend. The ex-dividend date is Monday, September 29th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 7.1%. South Bow's dividend payout ratio is currently 108.11%.

Institutional Investors Weigh In On South Bow

A number of institutional investors and hedge funds have recently modified their holdings of SOBO. Louisbourg Investments Inc. acquired a new stake in South Bow during the 1st quarter valued at $31,000. BNP Paribas Financial Markets purchased a new position in South Bow in the fourth quarter valued at about $29,000. Northwestern Mutual Wealth Management Co. lifted its stake in shares of South Bow by 1,993.8% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 1,340 shares of the company's stock worth $35,000 after purchasing an additional 1,276 shares in the last quarter. Caitong International Asset Management Co. Ltd lifted its stake in shares of South Bow by 150.0% during the second quarter. Caitong International Asset Management Co. Ltd now owns 1,550 shares of the company's stock worth $40,000 after purchasing an additional 930 shares in the last quarter. Finally, Cubist Systematic Strategies LLC acquired a new position in shares of South Bow during the first quarter worth about $85,000.

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.

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