Enbridge (NYSE:ENB) (TSE:ENB) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Wednesday.
According to Zacks, “Enbridge has the longest and most sophisticated crude and liquids pipeline system in the world that spreads over 17,018 miles. Its huge backlog of growth projects that stands at C$22 billion along with the C$12 billion worth midstream projects that are online will help it drive dividend by 10% annually through 2020. The Big Foot Oil Pipeline of the company is one of the lucrative offshore midstream projects. Moreover, Enbridge’s decision to purchase all of the outstanding stocks of Enbridge Energy Partners, Enbridge Energy Management and Enbridge Income Fund Holdings is likely to be a prudent move for expanding investment appeal and attracting premium valuation. However, the firm’s significant exposure to debt is a matter of concern. Enbridge's year-over-year higher gas distribution costs for third-quarter 2018 is also a worry.”
ENB has been the topic of several other reports. Wells Fargo & Co raised shares of Enbridge from a “market perform” rating to an “outperform” rating in a research note on Monday, November 5th. CIBC restated a “buy” rating and set a $57.00 target price on shares of Enbridge in a report on Tuesday, January 15th. Wolfe Research upgraded shares of Enbridge from a “market perform” rating to an “outperform” rating in a report on Monday, January 7th. ValuEngine upgraded shares of Enbridge from a “hold” rating to a “buy” rating in a report on Monday. Finally, Macquarie initiated coverage on shares of Enbridge in a report on Thursday, January 24th. They set an “outperform” rating on the stock. Four analysts have rated the stock with a hold rating and nine have given a buy rating to the company. The company has a consensus rating of “Buy” and a consensus price target of $48.80.
Shares of ENB stock traded down $0.05 during trading hours on Wednesday, hitting $37.58. 65,592 shares of the company’s stock were exchanged, compared to its average volume of 3,473,025. The company has a market capitalization of $75.71 billion, a PE ratio of 24.40, a price-to-earnings-growth ratio of 2.27 and a beta of 0.69. Enbridge has a 12-month low of $28.82 and a 12-month high of $37.69. The company has a debt-to-equity ratio of 0.98, a quick ratio of 0.49 and a current ratio of 0.59.
In other news, insider Albert Monaco purchased 7,569 shares of the company’s stock in a transaction that occurred on Tuesday, December 4th. The shares were bought at an average price of $43.82 per share, for a total transaction of $331,673.58. Following the purchase, the insider now directly owns 67,329 shares in the company, valued at approximately $2,950,356.78. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, insider Byron C. Neiles sold 64,000 shares of the company’s stock in a transaction dated Friday, December 14th. The stock was sold at an average price of $43.10, for a total transaction of $2,758,400.00. Following the completion of the transaction, the insider now owns 128,665 shares in the company, valued at approximately $5,545,461.50. The disclosure for this sale can be found here. Insiders own 0.48% of the company’s stock.
Several hedge funds and other institutional investors have recently added to or reduced their stakes in ENB. Parkside Financial Bank & Trust increased its stake in Enbridge by 58.6% in the fourth quarter. Parkside Financial Bank & Trust now owns 812 shares of the pipeline company’s stock worth $25,000 after purchasing an additional 300 shares during the period. Csenge Advisory Group purchased a new position in Enbridge during the third quarter worth $28,000. Rockland Trust Co. purchased a new position in Enbridge during the fourth quarter worth $28,000. We Are One Seven LLC acquired a new stake in shares of Enbridge during the fourth quarter worth $28,000. Finally, Mackey Komara & Dankovich LLC acquired a new stake in shares of Enbridge during the fourth quarter worth $31,000. 49.36% of the stock is owned by hedge funds and other institutional investors.
Enbridge Inc operates as an energy infrastructure company in Canada and the United States. The company operates in five segments: Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution, Green Power and Transmission, and Energy Services. The Liquids Pipelines segment operates common carrier and contract crude oil, natural gas liquids (NGL), and refined products pipelines and terminals.
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