Taking on analysts’ expectations and winning: Enbridge Inc. (ENB)

Enbridge Inc. (NYSE: ENB) stock fell -0.17% on Friday to $40.07 against a previous-day closing price of $40.14. With 2.37 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.99 million shares. During the session, the Oil & Gas Midstream company that operates in wider Energy sector, reached to the highest price of $40.56 whereas the lowest price it dropped to was $39.96. The 52-week range on ENB shows that it touched its highest point at $47.67 and its lowest point at $36.21 during that stretch. It currently has a 1-year price target of $46.64. With its current market cap of 82.89 billion, ENB has annualized dividend of $2.69 while the current yield stands at 6.72%. Beta for the stock currently stands at 0.79.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ENB was down-trending over the past week, with a drop of -4.30%, but this was down by -8.35% over a month. Three-month performance dropped to -1.79% while six-month performance fell -11.07%. The stock gained 1.39% in the past year, while it has gained 2.53% so far this year. A look at the trailing 12-month EPS for ENB yields 1.83 with Next year EPS estimates of 3.08. For the next quarter, that number is 0.65. This implies an EPS growth rate of 94.60% for this year and 5.74% for next year. EPS is expected to grow by 8.40% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 8.20%.

Float and Shares Shorts:

At present, 2.03 billion ENB shares are outstanding with a float of 2.02 billion shares on hand for trading. On Jul 14, 2022, short shares totaled 25.59 million, which was 1.26% higher than short shares on Jun 14, 2022. In addition to Mr. Al Monaco as the firm’s Pres, CEO & Director, Mr. Dai-Chung Yu serves as its Exec. VP of Corp. Devel. & CFO.

Institutional Ownership:

Through their ownership of 53.31% of ENB’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 30.71% of ENB, in contrast to 22.32% held by mutual funds. Shares owned by individuals account for 0.16%. As the largest shareholder in ENB with 5.96% of the stake, RBC Global Asset Management, Inc. holds 120,716,857 shares worth 120,716,857. A second-largest stockholder of ENB, 1832 Asset Management LP, holds 57,751,896 shares, controlling over 2.85% of the firm’s shares. GQG Partners LLC is the third largest shareholder in ENB, holding 51,856,121 shares or 2.56% stake. With a 1.31% stake in ENB, the Vanguard Total International Stoc is the largest stakeholder. A total of 26,610,572 shares are owned by the mutual fund manager. The Goldman Sachs GQG Partners Intern, which owns about 0.98% of ENB stock, is the second-largest Mutual Fund holder. It holds 19,862,571 shares valued at 818.74 million. Manulife Balanced Income Private holds 0.85% of the stake in ENB, owning 17,141,000 shares worth 706.55 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ENB since 23 analysts follow the stock currently. There are 11 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 11 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With ENB analysts setting a high price target of $52.06 and a low target of $41.14, the average target price over the next 12 months is $46.34. Based on these targets, ENB could surge 29.92% to reach the target high and rise by 2.67% to reach the target low. Reaching the average price target will result in a growth of 15.65% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. ENB will report FY 2022 earnings on 02/17/2023. Analysts have provided yearly estimates in a range of $2.54 being high and $2.00 being low. For ENB, this leads to a yearly average estimate of $2.26. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Enbridge Inc. surprised analysts by -$0.02 when it reported $0.52 EPS against a consensus estimate of $0.55. The surprise factor in the prior quarter was -$0.02. Based on analyst estimates, the high estimate for the next quarter is $0.57 and the low estimate is $0.47. The average estimate for the next quarter is thus $0.50.

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