South Bow (NYSE:SOBO) Reaches New 52-Week High - Should You Buy?

Key Points

• South Bow's stock hit a new 52-week high of $34.98 (last trade $34.97) on Monday, trading with about 110,061 shares volume.
• Analyst sentiment is mixed—three Buys, eight Holds and four Sells—giving a MarketBeat consensus rating of "Reduce" and an average price target of $30.38, well below the current share price.
• The company reported an EPS beat ($0.61 vs. $0.40) and modest 3.1% revenue growth, and pays a 5.7% annual dividend ($2.00) but has a high payout ratio (~96%) and notable leverage (debt/equity 2.13).

South Bow Corporation (NYSE:SOBO - Get Free Report)'s stock price reached a new 52-week high during mid-day trading on Monday . The stock traded as high as $34.98 and last traded at $34.9710, with a volume of 110061 shares traded. The stock had previously closed at $34.72.

Analysts Set New Price Targets

SOBO has been the subject of several research reports. Scotiabank lifted their price target on South Bow from $30.00 to $34.00 and gave the stock a "sector perform" rating in a research note on Friday, March 6th. The Goldman Sachs Group initiated coverage on South Bow in a research note on Monday, April 20th. They set a "sell" rating and a $29.00 price target for the company. Weiss Ratings raised South Bow from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Friday, February 20th. Barclays lifted their price target on South Bow from $27.00 to $33.00 and gave the stock an "equal weight" rating in a research note on Monday, March 9th. Finally, BMO Capital Markets reaffirmed a "market perform" rating on shares of South Bow in a research note on Monday, April 27th. Three investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and four have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Reduce" and an average target price of $30.38.

South Bow Trading Up 1.3%

The stock has a market cap of $7.34 billion, a PE ratio of 16.91 and a beta of 0.11. The business has a 50-day moving average of $32.97 and a 200 day moving average of $29.35. The company has a debt-to-equity ratio of 2.13, a quick ratio of 1.43 and a current ratio of 1.50.

South Bow (NYSE:SOBO - Get Free Report) last posted its quarterly earnings data on Thursday, March 5th. The company reported $0.61 EPS for the quarter, topping analysts' consensus estimates of $0.40 by $0.21. The firm had revenue of $503.00 million during the quarter, compared to analysts' expectations of $500.57 million. South Bow had a return on equity of 15.55% and a net margin of 21.80%.The firm's quarterly revenue was up 3.1% compared to the same quarter last year. During the same quarter last year, the business posted $0.54 EPS. Equities research analysts predict that South Bow Corporation will post 1.88 EPS for the current fiscal year.

South Bow Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st were given a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a yield of 5.7%. The ex-dividend date was Tuesday, March 31st. South Bow's dividend payout ratio (DPR) is currently 96.15%.

Institutional Trading of South Bow

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. City Holding Co. increased its position in South Bow by 277.4% during the 4th quarter. City Holding Co. now owns 1,000 shares of the company's stock worth $27,000 after purchasing an additional 735 shares in the last quarter. EverSource Wealth Advisors LLC increased its position in South Bow by 157.3% during the 3rd quarter. EverSource Wealth Advisors LLC now owns 1,055 shares of the company's stock worth $30,000 after purchasing an additional 645 shares in the last quarter. IFP Advisors Inc increased its position in South Bow by 780.3% during the 3rd quarter. IFP Advisors Inc now owns 1,206 shares of the company's stock worth $34,000 after purchasing an additional 1,069 shares in the last quarter. Northwestern Mutual Wealth Management Co. grew its holdings in South Bow by 1,993.8% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 1,340 shares of the company's stock valued at $35,000 after buying an additional 1,276 shares during the period. Finally, Flagship Harbor Advisors LLC purchased a new stake in South Bow in the 4th quarter valued at about $39,000.

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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