TC Energy Target of Unusually Large Options Trading (NYSE:TRP)

Key Points

• Investors bought an unusually large number of put options—16,157 puts, a 1,446% increase versus typical volume—signaling elevated bearish hedging or speculative activity in TC Energy (TRP).
• TC Energy raised its quarterly dividend to $0.8775 (annualized $3.51) for a 5.8% yield, but the dividend payout ratio is a high 108.62%, which could raise sustainability concerns.
• Recent results showed Q4 EPS of $0.70 beating estimates while revenue missed at $2.20B, and the stock trades around $60.95 with an average analyst price target of $72.50 amid mixed ratings.

TC Energy Corporation (NYSE:TRP - Get Free Report) TSE: TRP saw some unusual options trading on Wednesday. Stock investors bought 16,157 put options on the stock. This represents an increase of 1,446% compared to the typical volume of 1,045 put options.

TC Energy Price Performance

TRP stock opened at $60.95 on Thursday. The company has a market capitalization of $63.49 billion, a P/E ratio of 26.23 and a beta of 0.69. The company has a debt-to-equity ratio of 1.66, a quick ratio of 0.56 and a current ratio of 0.63. TC Energy has a 52-week low of $46.29 and a 52-week high of $65.57. The business has a 50-day simple moving average of $63.00 and a two-hundred day simple moving average of $57.18.

TC Energy (NYSE:TRP - Get Free Report) TSE: TRP last released its quarterly earnings results on Friday, February 13th. The pipeline company reported $0.70 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.65 by $0.05. The business had revenue of $2.20 billion during the quarter, compared to the consensus estimate of $2.94 billion. TC Energy had a return on equity of 10.52% and a net margin of 23.04%.During the same quarter in the previous year, the business earned $1.05 EPS. Research analysts expect that TC Energy will post 2.63 EPS for the current fiscal year.

TC Energy Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, April 30th. Shareholders of record on Tuesday, March 31st will be paid a dividend of $0.8775 per share. This is an increase from TC Energy's previous quarterly dividend of $0.85. The ex-dividend date is Tuesday, March 31st. This represents a $3.51 dividend on an annualized basis and a yield of 5.8%. TC Energy's dividend payout ratio (DPR) is presently 108.62%.

Hedge Funds Weigh In On TC Energy

A number of hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. boosted its holdings in TC Energy by 2.1% during the 4th quarter. Vanguard Group Inc. now owns 47,801,695 shares of the pipeline company's stock worth $2,632,200,000 after acquiring an additional 980,221 shares during the last quarter. Capital Research Global Investors boosted its holdings in TC Energy by 2.5% during the 3rd quarter. Capital Research Global Investors now owns 41,977,582 shares of the pipeline company's stock worth $2,282,469,000 after acquiring an additional 1,041,864 shares during the last quarter. FIL Ltd boosted its holdings in TC Energy by 3.9% during the 4th quarter. FIL Ltd now owns 28,305,789 shares of the pipeline company's stock worth $1,558,669,000 after acquiring an additional 1,052,166 shares during the last quarter. TD Asset Management Inc boosted its holdings in TC Energy by 6.3% during the 4th quarter. TD Asset Management Inc now owns 20,868,772 shares of the pipeline company's stock worth $1,150,656,000 after acquiring an additional 1,244,525 shares during the last quarter. Finally, GQG Partners LLC boosted its holdings in TC Energy by 586.5% during the 4th quarter. GQG Partners LLC now owns 16,154,469 shares of the pipeline company's stock worth $890,711,000 after acquiring an additional 13,801,371 shares during the last quarter. 83.13% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several analysts have recently commented on the company. Morgan Stanley restated an "overweight" rating on shares of TC Energy in a research note on Wednesday, January 28th. The Goldman Sachs Group raised their target price on TC Energy from $48.00 to $53.00 and gave the company a "sell" rating in a research note on Wednesday, February 18th. Raymond James Financial upgraded TC Energy to a "hold" rating in a research note on Tuesday, February 17th. Barclays reissued an "overweight" rating on shares of TC Energy in a research report on Friday, February 20th. Finally, National Bank Financial downgraded shares of TC Energy from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, February 17th. Seven investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $72.50.

TC Energy Company Profile

TC Energy NYSE: TRP is a North American energy infrastructure company headquartered in Calgary, Alberta. Formerly known as TransCanada, the company rebranded as TC Energy to reflect its broad presence across Canada, the United States and Mexico. TC Energy develops, owns and operates a diversified portfolio of energy infrastructure assets that play a central role in the transportation and delivery of energy across the continent.

The company's principal businesses include long‑distance natural gas transmission, liquids (crude oil) pipelines, natural gas storage and power generation.

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