Enbridge Inc (ENB) Downgraded by Zacks Investment Research
Zacks Investment Research cut shares of Enbridge Inc (NYSE:ENB) (TSE:ENB) from a hold rating to a sell rating in a research report released on Tuesday, July 11th.
According to Zacks, “Enbridge’s debt load has increased significantly from the 2012 levels. Importantly, during first-quarter 2017, the midstream energy player’s long-term debt rose over 66%, while cash balance declined 7%. It is to be noted that as of Dec 31, 2016, Enbridge has long-term debt of C$40,594 million, as against cash balance of only C$2,117 million, reflecting weakness in the company’s financials. Also, credit rating agencies Standard and Poor’s Ratings Services (S&P) & Moody’s Investors Service (Moody’s) rated the company’s debt as BBB+ and Baa2 – among the lowest investment grade ratings. Any downgrade by the rating agencies will make the company’s bond non investment grade. Hence, it is a serious matter of concern as Enbridge will not be able to raise debt capital in favorable terms for financing growth projects if there is a downgrade in credit ratings.”
Other research analysts also recently issued research reports about the stock. Wells Fargo & Company reaffirmed a market perform rating on shares of Enbridge in a report on Friday, March 31st. BidaskClub raised shares of Enbridge from a strong sell rating to a sell rating in a report on Saturday, June 24th. Morgan Stanley assumed coverage on shares of Enbridge in a report on Tuesday, May 2nd. They set an equal weight rating and a $45.00 price objective for the company. J P Morgan Chase & Co reissued a neutral rating on shares of Enbridge in a report on Friday, June 23rd. Finally, Wolfe Research assumed coverage on shares of Enbridge in a report on Friday, May 12th. They set a market perform rating and a $43.00 price objective for the company. Two research analysts have rated the stock with a sell rating, six have given a hold rating and eight have assigned a buy rating to the company. The company currently has an average rating of Hold and an average target price of $54.00.
Shares of Enbridge (NYSE ENB) opened at 41.53 on Tuesday. Enbridge has a 1-year low of $37.37 and a 1-year high of $45.77. The company has a market cap of $68.06 billion, a price-to-earnings ratio of 43.49 and a beta of 0.62. The company’s 50-day moving average price is $40.07 and its 200 day moving average price is $41.05.
Enbridge (NYSE:ENB) (TSE:ENB) last issued its earnings results on Thursday, August 3rd. The pipeline company reported $0.30 earnings per share for the quarter, missing the consensus estimate of $0.35 by $0.05. The firm had revenue of $8.26 billion during the quarter, compared to the consensus estimate of $8.81 billion. Enbridge had a return on equity of 7.55% and a net margin of 5.28%. During the same period in the prior year, the company posted $0.50 EPS. On average, analysts predict that Enbridge will post $1.78 earnings per share for the current fiscal year.
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The firm also recently declared a quarterly dividend, which will be paid on Friday, September 1st. Investors of record on Tuesday, August 15th will be issued a $0.489 dividend. This is an increase from Enbridge’s previous quarterly dividend of $0.33. The ex-dividend date is Friday, August 11th. This represents a $1.96 dividend on an annualized basis and a dividend yield of 4.71%. Enbridge’s dividend payout ratio (DPR) is presently 173.79%.
Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Caisse DE Depot ET Placement DU Quebec increased its position in shares of Enbridge by 10.9% in the first quarter. Caisse DE Depot ET Placement DU Quebec now owns 43,464,138 shares of the pipeline company’s stock worth $1,818,540,000 after buying an additional 4,256,369 shares during the last quarter. TD Asset Management Inc. increased its position in shares of Enbridge by 4.6% in the second quarter. TD Asset Management Inc. now owns 43,401,073 shares of the pipeline company’s stock worth $1,726,420,000 after buying an additional 1,909,405 shares during the last quarter. Vanguard Group Inc. increased its position in shares of Enbridge by 82.9% in the first quarter. Vanguard Group Inc. now owns 38,983,086 shares of the pipeline company’s stock worth $1,631,051,000 after buying an additional 17,671,076 shares during the last quarter. Bank of Montreal Can increased its position in shares of Enbridge by 72.4% in the first quarter. Bank of Montreal Can now owns 38,965,561 shares of the pipeline company’s stock worth $1,630,318,000 after buying an additional 16,369,985 shares during the last quarter. Finally, FMR LLC increased its position in shares of Enbridge by 30.6% in the first quarter. FMR LLC now owns 34,484,573 shares of the pipeline company’s stock worth $1,444,626,000 after buying an additional 8,072,511 shares during the last quarter. 63.31% of the stock is owned by hedge funds and other institutional investors.
Enbridge Inc is a Canada-based energy transportation and distribution company. The Company is engaged in delivering energy. It operates through five segments: Liquids Pipelines, Gas Distribution, Gas Pipelines and Processing, Green Power and Transmission, and Energy Services. Liquids Pipelines consists of common carrier and contract crude oil, natural gas liquids (NGL), and refined products pipelines and terminals, including Canadian Mainline, Lakehead Pipeline System, Mid-Continent and Gulf Coast and Regional Oil Sands System.
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