South Bow (NYSE:SOBO) Share Price Breaks Below 200 Day Moving Average – Time to Sell?

South Bow Corporation (NYSE:SOBO)’s share price crossed below its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $34.48 and traded as low as $33.65. South Bow shares last traded at $34.0660, with a volume of 720,737 shares traded.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on SOBO shares. Scotiabank upped their price target on South Bow from $36.00 to $39.00 and gave the company a “sector perform” rating in a research note on Tuesday, July 21st. Raymond James Financial reissued an “outperform” rating on shares of South Bow in a research note on Wednesday, October 14th. TD Securities restated a “hold” rating on shares of South Bow in a report on Thursday, July 16th. Weiss Ratings cut shares of South Bow from a “buy (a-)” rating to a “buy (b+)” rating in a report on Tuesday, September 8th. Finally, Royal Bank Of Canada reaffirmed an “outperform” rating on shares of South Bow in a research note on Monday, August 10th. Four investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $32.50.

South Bow Stock Performance

The stock has a market capitalization of $7.11 billion, a price-to-earnings ratio of 15.41 and a beta of 0.17. The company has a current ratio of 1.52, a quick ratio of 1.44 and a debt-to-equity ratio of 2.15. The stock’s 50 day moving average is $35.21 and its two-hundred day moving average is $34.48.

South Bow (NYSE:SOBO) last announced its earnings results on Wednesday, November 4th. The company reported $0.47 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.43 by $0.04. South Bow had a return on equity of 15.84% and a net margin of 22.99%. The business had revenue of $503.00 million for the quarter, compared to analyst estimates of $476.02 million. Analysts expect that South Bow Corporation will post 1.84 earnings per share for the current fiscal year.

South Bow Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, January 15th. Shareholders of record on Thursday, December 31st will be paid a $0.50 dividend. The ex-dividend date is Thursday, December 31st. This represents a $2.00 dividend on an annualized basis and a yield of 5.9%. South Bow’s dividend payout ratio (DPR) is currently 90.50%.

Hedge Funds Weigh In On South Bow

Institutional investors have recently bought and sold shares of the business. Parallel Advisors LLC lifted its stake in shares of South Bow by 140.5% during the 1st quarter. Parallel Advisors LLC now owns 849 shares of the company’s stock worth $28,000 after buying an additional 496 shares during the last quarter. EverSource Wealth Advisors LLC grew its stake in shares of South Bow by 78.2% in the first quarter. EverSource Wealth Advisors LLC now owns 1,893 shares of the company’s stock valued at $63,000 after acquiring an additional 831 shares in the last quarter. Kelleher Financial Advisors acquired a new position in shares of South Bow in the second quarter valued at about $68,000. Integrated Wealth Concepts LLC bought a new position in South Bow during the second quarter worth about $81,000. Finally, IFP Advisors Inc increased its position in South Bow by 202.6% during the third quarter. IFP Advisors Inc now owns 2,454 shares of the company’s stock worth $81,000 after acquiring an additional 1,643 shares during the period.

South Bow Company Profile

South Bow Corp. (NYSE: SOBO) is a liquids-focused energy infrastructure company headquartered in Calgary, Alberta. The company owns and operates crude oil transportation and storage assets that connect Canadian production regions with refineries, storage hubs and export markets in the United States.

South Bow’s primary asset is the Keystone Pipeline System, which transports crude oil from Western Canada to destinations in the U.S. Midwest and along the U.S. Gulf Coast. The company also operates the Marketlink system, which moves crude from Cushing, Oklahoma, to the Gulf Coast, as well as Canadian pipeline assets serving oil sands and other production areas.

South Bow began operating as an independent publicly traded company in October 2024 following its separation from TC Energy.