Enbridge Inc. (ENB) Loud Thud Doesn’t Negate The Long-Term Story

Despite closing -0.63 points lower on 12 February, Enbridge Inc. (NYSE:ENB) remains a key investment for many, but the stock is also a popular trading vehicle. Here’s how to trade it using charts and trading levels Wednesday. The shares dropped -1.74 percent at $35.67 with a light trade volume of 5.269 million shares. After opening the session at $36.62, the shares went as high as $36.62 and as low as $35.61, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $74.1 billion and now has 2.08 billion shares outstanding. Enbridge Inc. (ENB) stock has gained 3.27 percent of market value in 21 trading days.

ENB stock has a trailing 3-year beta of 0.69, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$0.2 a share in the trailing twelve months. The stock’s value has surged 14.77 percent year to date (YTD) against a rise of 4.85 percent in 12 month’s time. The company’s shares still trade -5.36 percent away from its 1-year high of $37.69 and 23.76 percent up from 52-week low of $28.82. The average consensus rating on the company is 2.3, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Enbridge Inc. (ENB) will probably climb 16.79 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $48.35 price as 12-month high target. This represents a whopping 35.55 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $41.86, which represents a return potential of 17.35 percent when compared to the closing price of the stock of $35.67 on Tuesday, February 12. The lowest price target for the stock is $36 — slightly more than 0.93 percent from ENB’s current share price.

History has shown that shares in Enbridge Inc. have gone down on 9 different earnings reaction days and are predicted to add 0.02 percent when the company reports upcoming earnings. Investors will get their next glimpse of ENB’s Q4 earnings on February 15. Analysts are forecasting revenue to climb 14 percent to $8.68B in the fiscal fourth quarter, while earnings are seen soaring by nearly -4.35 percent to $0.44 per share. It earned $0.31 per share, worse than the $0.37, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $11.3B, worse than the $11.7B analysts expected. Earnings are estimated to increase by -83.7 percent this year, -6.43 percent next year and continue to increase by 11.32 percent annually for the next 5 years.

Let’s take a look at some insider activity at Enbridge Inc. (NYSE:ENB) and see the pattern. The earliest insider trade took place on 12/14/2018. Neiles Byron C parted with a total of 64 thousand shares of company at average share price of $43.1. The total for the sales was set at $2.76 million. After this transaction, the account balance stood at 64.93 thousand shares. The stock lost -17.24 percent since that insider sale. On 12/04/2018, Monaco Albert, purchased 7.57 thousand shares at a price per share of $43.82. This added 331.67 thousand shares to the insider’s fortune and the stock saw a -18.6 percent retreat in value since the news became public. This transaction left 625.66 thousand shares in the account.

On 12/04/2018, Rooney Robert R performed a purchase transaction worth $11.47 thousand. This purchase at $43.93 each has added 0.26 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -18.8 percent decrease since the transaction was reported. The insider now is left with 18.1 thousand shares remaining in the account. Hansen Cynthia L, sold 12 thousand shares for $529.2 thousand. The disposal occurred on 12/03/2018 was priced at $44.1 per share. The share price plunged -19.12 percent since the reporting date. Hansen Cynthia L now left with a stake of 55.36 thousand ENB stock worth $1.97 million after the insider selling.

The stock is currently hovering around the first support level of $35.31. Below this, the next support is placed in the zone of $34.96. Till the time, the ENB stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 50.65 on daily chart, which may remain a cause for concern. If the price breaks below $34.96 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $36.32 mark may result into a pull-back move towards $36.98 level.

Further, it is sporting a 2.07 on the Price-to-Sales ratio. Compare this with the industry average P/S of 2.4. 35.2 percent is the gross profit margin for Enbridge Inc. and operating margin sits at 0.7 percent. Along with this, the net profit margin is 3.4 percent.