South Bow (NYSE:SOBO) Issues Quarterly Earnings Results

Key Points

• South Bow exceeded earnings expectations, reporting quarterly EPS of $0.50 versus the $0.45 consensus estimate. The company posted a 21.32% net margin and 15.24% return on equity.
• The company declared a quarterly dividend of $0.50 per share, equivalent to $2.00 annually and a 5.6% yield; its payout ratio is 98.52%.
• Analyst sentiment remains mixed, with four Buy, eight Hold, and four Sell ratings. The consensus rating is Hold, with a $32 average price target compared with the stock’s reported $35.54 trading price.

South Bow (NYSE:SOBO - Get Free Report) issued its quarterly earnings results on Wednesday. The company reported $0.50 EPS for the quarter, topping the consensus estimate of $0.45 by $0.05, Zacks reports. South Bow had a net margin of 21.32% and a return on equity of 15.24%.

South Bow Stock Performance

South Bow stock traded down $0.62 during midday trading on Wednesday, reaching $35.54. 657,286 shares of the company's stock were exchanged, compared to its average volume of 639,142. South Bow has a 52 week low of $25.01 and a 52 week high of $38.94. The company has a debt-to-equity ratio of 2.16, a quick ratio of 1.37 and a current ratio of 1.51. The firm has a market cap of $7.41 billion, a price-to-earnings ratio of 17.51 and a beta of 0.15. The stock's 50-day simple moving average is $36.66 and its 200 day simple moving average is $33.93.

South Bow Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th were issued a dividend of $0.50 per share. The ex-dividend date was Tuesday, June 30th. This represents a $2.00 dividend on an annualized basis and a yield of 5.6%. South Bow's dividend payout ratio (DPR) is presently 98.52%.

Institutional Trading of South Bow

Several institutional investors and hedge funds have recently bought and sold shares of SOBO. Cubist Systematic Strategies LLC bought a new position in shares of South Bow during the 1st quarter worth approximately $85,000. Amundi bought a new stake in South Bow in the 1st quarter valued at $588,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in South Bow by 17.4% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 199,035 shares of the company's stock valued at $5,079,000 after acquiring an additional 29,542 shares during the period. Acadian Asset Management LLC acquired a new stake in South Bow during the 1st quarter valued at $885,000. Finally, Geode Capital Management LLC lifted its holdings in South Bow by 7.5% during the 2nd quarter. Geode Capital Management LLC now owns 172,491 shares of the company's stock valued at $4,499,000 after purchasing an additional 11,984 shares during the last quarter.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on SOBO. TD Securities restated a "hold" rating on shares of South Bow in a report on Thursday, July 16th. The Goldman Sachs Group initiated coverage on South Bow in a report on Monday, April 20th. They set a "sell" rating and a $29.00 target price on the stock. 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 research report on Monday, June 1st. Wall Street Zen upgraded South Bow from a "sell" rating to a "hold" rating in a research note on Saturday, July 18th. Finally, Jefferies Financial Group reaffirmed a "buy" rating on shares of South Bow in a research report on Thursday, May 28th. Four analysts have rated the stock with a Buy rating, eight have issued a Hold rating and four have issued a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $32.00.

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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