Coldstream Capital Management Inc. has significantly increased its investment in Enbridge Inc. by 38.8% during the second quarter of 2023. According to the latest Form 13F filing with the Securities and Exchange Commission, the institutional investor now holds 5,680 shares of the pipeline company, having acquired an additional 1,588 shares during this period. As of the latest filing, Coldstream’s holdings in Enbridge are valued at approximately $257,000.
Other institutional investors have also adjusted their positions in Enbridge recently. For instance, Dagco Inc. entered the market with a new position in the first quarter valued at $25,000. Meanwhile, Whipplewood Advisors LLC increased its stake by an impressive 112.4% in the second quarter, now owning 582 shares worth $26,000 after purchasing 308 additional shares.
In addition, Financial Gravity Companies Inc. acquired a new stake valued at $29,000, while Accent Capital Management LLC and Addison Advisors LLC made new acquisitions valued at approximately $30,000 and $35,000, respectively. Currently, institutional investors, including hedge funds, own 54.60% of Enbridge’s stock.
Enbridge’s Market Performance and Financials
On November 1, 2023, Enbridge shares opened at $48.65, reflecting a 1.3% increase. The company’s fifty-day moving average stands at $48.11, while its 200-day moving average is $46.97. Over the past year, Enbridge has seen a low of $39.73 and a high of $50.54.
Enbridge has a market capitalization of $106.12 billion and a price-to-earnings ratio of 23.97. The company’s financial ratios indicate a debt-to-equity ratio of 1.58, a current ratio of 0.75, and a quick ratio of 0.65. In its latest quarterly earnings report released on November 1, Enbridge reported earnings of $0.33 per share, falling short of the consensus estimate of $0.39 by $0.06. Revenue for the quarter was $7 billion, significantly below analyst expectations of $8.45 billion.
Despite the earnings miss, Enbridge recorded a net margin of 10.11% and a return on equity of 10.77%. Analysts anticipate that Enbridge will post earnings of $2.14 per share for the current fiscal year.
Dividend Announcement and Analyst Ratings
Enbridge has declared a quarterly dividend of $0.9425 per share, which will be paid on December 1, 2023, to investors on record as of November 14, 2023. This increase from the previous quarterly dividend of $0.68 represents an annualized dividend of $3.77 and a yield of 7.7%. The company’s dividend payout ratio currently stands at 147.80%.
Recent analyst evaluations have brought mixed reviews for Enbridge. Zacks Research downgraded the stock from a “hold” rating to a “strong sell” on November 11, 2023. Conversely, Weiss Ratings maintained a “buy (b-)” rating, while BMO Capital Markets and Scotiabank reiterated “market perform” and “sector perform” ratings, respectively, on November 10, 2023. Additionally, CIBC lowered its rating from “outperform” to “neutral” on October 9, 2023. Currently, six analysts recommend buying the stock, five suggest holding, and one advises selling it. The consensus rating is “Hold” with an average target price of $63.00.
Enbridge Inc., along with its subsidiaries, operates as a major energy infrastructure company, managing five segments: Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation, and Energy Services. The Liquids Pipelines segment is responsible for transporting various grades of crude oil and other liquid hydrocarbons across Canada and the United States.
