NEW YORK (TheStreet) -- Shares of Enbridge Inc (ENB) are soaring, up 10.13% to $52.73 on very high volume in early market trading Thursday -- the most in more than six years -- after the pipeline operator increased its dividend and announced its plans to move assets, Bloomberg reports.
Canada's largest pipeline operator said late yesterday it will move $15 billion worth of Canadian liquids pipelines to its affiliate, Enbridge Income Fund, to pay for capital investment.
Enbridge also raised its dividend by 33%, payable March 1, 2015 to shareholders. Additionally, the company announced 2015 adjusted earnings guidance of $2.05 per share to $2.35 per share.
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Enbridge transports and distributes energy, operating in Canada and the U.S.
About 2.71 million shares have traded hands as of 10:25 a.m. in New York, compared to its average trading volume of about 1.04 million shares a day.
Separately, TheStreet Ratings team rates ENBRIDGE INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ENBRIDGE INC (ENB) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its solid stock performance, considering both the consistency and magnitude of the price movement over time. At the same time, however, we also find weaknesses including feeble growth in the company's earnings per share, unimpressive growth in net income and generally higher debt management risk."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- ENB, with its decline in revenue, slightly underperformed the industry average of 6.4%. Since the same quarter one year prior, revenues slightly dropped by 7.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry, implying reduced upside potential.
- ENBRIDGE INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, ENBRIDGE INC reported lower earnings of $0.55 versus $0.87 in the prior year.
- The gross profit margin for ENBRIDGE INC is currently extremely low, coming in at 9.91%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -0.16% trails that of the industry average.
- Net operating cash flow has decreased to $746.00 million or 10.12% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, ENBRIDGE INC has marginally lower results.
- You can view the full analysis from the report here: ENB Ratings Report