Short Interest in Enbridge Inc (NYSE:ENB) Grows By 124.1%

Enbridge Inc (NYSE:ENB) (TSE:ENB) was the target of a significant growth in short interest in August. As of August 14th, there was short interest totaling 69,771,404 shares, a growth of 124.1% from the July 30th total of 31,138,217 shares. Approximately 3.2% of the shares of the company are short sold. Based on an average daily volume of 7,081,580 shares, the days-to-cover ratio is currently 9.9 days.

Enbridge News Summary

Here are the key news stories impacting Enbridge this week:

• Positive Sentiment: Enbridge agreed to form a joint venture with KKR and Apollo to fund approximately C$2.7 billion in expansions of its Westcoast natural-gas pipeline system in British Columbia. Bringing in private capital should reduce Enbridge’s direct funding requirements while allowing it to retain an interest and benefit from long-term contracted infrastructure growth. Enbridge, KKR form joint venture to invest in Westcoast natural gas pipeline
• Positive Sentiment: The company is also buying Salt Creek Midstream’s crude-gathering assets in the Permian Basin for about US$600 million. The acquisition adds roughly 500 miles of pipeline infrastructure, expands Enbridge’s regional footprint and is expected to contribute contracted earnings and cash flow after closing. Enbridge buying Salt Creek Midstream’s crude oil gathering business for $600M
• Positive Sentiment: Analysts continue to view Enbridge as an income-oriented investment, citing diversified, largely contracted cash flows and a dividend yield of approximately 5.6%. Its multiyear capital program and inflation-linked contracts may support stable cash generation, although they also limit exposure to commodity-price upside. Enbridge: A Reasonable Choice For Income And Capital Preservation
• Neutral Sentiment: Air monitoring following a Line 5 leak reportedly found no hazardous gas levels, reducing immediate public-health concerns. Air monitoring shows no hazardous levels of gases after leak on Enbridge’s Line 5
• Negative Sentiment: Wisconsin regulators have asked Enbridge to halt work on the Line 5 reroute after the leak, raising the possibility of construction delays, added costs and increased scrutiny. Wisconsin asks Enbridge to halt Line 5 reroute work after spill
• Negative Sentiment: Michigan Governor Gretchen Whitmer filed a brief challenging Enbridge’s right to operate Line 5 through the Straits of Mackinac, describing the pipeline as a potential danger. The legal challenge adds long-term uncertainty around a strategically important asset and could increase regulatory, litigation and remediation risks. Whitmer responds to Enbridge lawsuit over Line 5 pipeline

Analyst Upgrades and Downgrades

Several brokerages have issued reports on ENB. TD Securities reissued a “hold” rating on shares of Enbridge in a report on Thursday, July 16th. Wolfe Research set a $50.00 price target on shares of Enbridge in a report on Tuesday, August 4th. Wall Street Zen upgraded shares of Enbridge from a “sell” rating to a “hold” rating in a research report on Sunday, July 12th. BMO Capital Markets restated a “market perform” rating on shares of Enbridge in a research report on Monday, August 3rd. Finally, Raymond James Financial cut shares of Enbridge from an “outperform” rating to a “market perform” rating in a research report on Friday, July 31st. Six investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, Enbridge has an average rating of “Moderate Buy” and a consensus target price of $67.00.

Enbridge Stock Down 0.1%

Shares of NYSE:ENB opened at $50.17 on Monday. The company has a debt-to-equity ratio of 1.69, a current ratio of 0.72 and a quick ratio of 0.66. The stock has a market cap of $109.57 billion, a price-to-earnings ratio of 26.83 and a beta of 0.58. The company has a 50 day moving average of $53.64 and a 200-day moving average of $54.03. Enbridge has a one year low of $45.03 and a one year high of $58.45.

Enbridge (NYSE:ENB) (TSE:ENB) last announced its quarterly earnings data on Friday, July 31st. The pipeline company reported $0.46 earnings per share for the quarter, beating the consensus estimate of $0.43 by $0.03. Enbridge had a net margin of 7.20% and a return on equity of 11.17%. The business had revenue of $9.70 billion for the quarter, compared to analyst estimates of $8.67 billion. During the same period in the prior year, the business posted $0.65 earnings per share. On average, sell-side analysts forecast that Enbridge will post 2.11 earnings per share for the current year.

Enbridge Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Friday, August 14th will be paid a $0.97 dividend. The ex-dividend date of this dividend is Friday, August 14th. This represents a $3.88 annualized dividend and a dividend yield of 7.7%. Enbridge’s dividend payout ratio (DPR) is currently 147.06%.

Institutional Trading of Enbridge

A number of institutional investors have recently made changes to their positions in the business. Triumph Capital Management acquired a new position in Enbridge during the third quarter worth $26,000. Arlington Trust Co LLC increased its stake in Enbridge by 114.6% in the 2nd quarter. Arlington Trust Co LLC now owns 500 shares of the pipeline company’s stock valued at $27,000 after buying an additional 267 shares during the last quarter. Turning Point Benefit Group Inc. acquired a new stake in Enbridge in the 3rd quarter valued at $28,000. Inspire Investing LLC bought a new stake in Enbridge during the 4th quarter worth about $29,000. Finally, Garner Asset Management Corp bought a new stake in Enbridge during the 4th quarter worth about $30,000. Institutional investors own 54.60% of the company’s stock.

Enbridge Company Profile

Enbridge Inc is a Calgary, Alberta–based energy infrastructure company that develops, owns and operates a diversified portfolio of energy transportation, distribution and generation assets. Its core activities include the operation of crude oil and liquids pipelines, natural gas transmission and distribution systems, and energy storage facilities. In addition to midstream transportation and storage, Enbridge has expanded into renewable power generation and energy transition projects, including wind, solar and utility-scale generation assets.

The company serves customers primarily in Canada and the United States and has interests in other international energy projects.