Enbridge Stock Forecast 2025 – Enbridge (TSE: ENB) is making a significant investment in natural gas. Shares of Enbridge fell by 5.89% recently. Investors are concerned that the expected merger may result in short-term indigestion for the Canadian energy distribution and production company.
Yet Enbridge has a remarkable history of paying dividends. For more than 68 years, the huge Canadian energy infrastructure company has paid dividends. Each of the past 28 years has seen an increase in the payout. Experts predict that growth will persist.
Our readers can assess whether ENB is a decent portfolio addition in our article. These forecasts take many factors into account. This includes volume changes, price changes, market cycles, and stocks that are similar.
ENB stock is currently trading at $33.22 as of September 8, 2023. In the last month, it has moved -7.70%, and on the last day, ENB has increased by +0.03%.
Here, we’ll try to assess the long-term potential of the Enbridge stock. But first, let’s take a look at Enbridge Systems Company’s company structure and financial information before we examine the projected price of Enbridge stock in the future.
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About Enbridge (ENB) Stock
Enbridge Inc. is an energy infrastructure firm. Energy delivery via the world’s largest and most advanced crude and liquid pipeline network is one of its core operations.
The business transports barrels of crude oil through the Mainline and Express pipelines per day in the United States. The business is engaged in the gathering, transmission, processing, and storage of natural gas in North America.
Enbridge also uses solar and wind energy to produce energy. Enbridge is the largest diversified midstream energy player. It handles transporting crude in North America. Investors should be aware that Enbridge’s diverse network of midstream assets produces steady fee-based profits.
The company has given up non-core assets. They brought new midstream energy projects worth billions online over the years. The following five segments make up the company’s main business:
- pipeline for liquids,
- gas transmission and midstream,
- distribution and storage of gas,
- production of renewable energy, and
- energy services
The company was established on April 30, 1949. The headquarters of the company are located in Calgary, Canada.
Top dividend stock
The cash flow generated by the pipeline and utility firms is relatively steady. It is supported by long-term contracts and tariff structures. Also, they are governed by the government. It intends to provide dividends equal to 60% to 70% of its steady cash flow. That offers it a comfortable cushion and enables it to have a sizable amount of cash on hand to finance fresh investments.
Enbridge also has a solid balance sheet with investment-grade credit. Its leverage ratio is near the low end of its target range. That increases its ability to support its dividend and expansion objectives financially. The company’s low-risk business strategy and solid financial standing give its 7.5% dividend yield a solid base.
Enbridge has approximately 6 billion Canadian dollars ($4.4 billion) in yearly investment capacity. It’s due to its post-dividend-free cash and balance sheet flexibility. It can use that money to strategically repurchase shares, make bolt-on acquisitions, and engage in organic expansions.
With many more prospects in the works, the firm now has a backlog of CA$19 billion ($14 billion) in commercially secured expansion projects. It should go online through 2028. It now has excellent visibility into potential future cash flow increases.
Through 2025, Enbridge forecasts a 3% annual growth in cash flow per share. It is followed by a 5% annual growth rate from 2026 onward. Within that range, that ought to promote dividend growth.
Why Enbridge’s stock is falling
On September 6, 2023, after the company’s major announcement, shares of Enbridge dropped as much as 6.7%. Enbridge announced late Tuesday that it would buy three natural gas utilities from Dominion Energy (D 0.17%) for a total of $14 billion. It would include $9.4 billion in cash and around $4.6 billion in anticipated debt. The agreement will expand Enbridge’s current activities in Ontario.
This includes natural gas utility operations in Ohio, North Carolina, Utah, Idaho, and Wyoming. The transaction would increase Enbridge’s natural gas utility business by twofold, to around 22% of the company’s overall adjusted EBITDA.
It will give it a consistent and dependable source of free cash flow. After the transaction, Enbridge’s gas utility business would be the biggest in North America.
Greg Ebel, the company’s CEO, stated in a statement that “these acquisitions further broaden our business. It will enhance the stable cash flow profile of our assets. Also, it will strengthen our long-term dividend growth profile.”
Enbridge said it anticipates its investment to boost adjusted profits per share in the first full year of ownership. It is paying around 16.4 times earnings for the assets.
For Enbridge, this transaction makes strategic sense, and the assets seem to be priced fairly. However, it can temporarily put a burden on the company’s balance sheet.
For the $9.4 billion cash consideration, Enbridge has secured loan finance agreements from Royal Bank of Canada and Morgan Stanley. It still stated that it hopes to keep the debt-to-adjusted EBITDA ratio within the 4.5–5 goal range. Investors will be closely observing how the debt rating agencies assess the transaction.
Investor caution is reasonable given the risks associated with such purchases. However, following the sell-off on Wednesday morning, the stock is now down 14% for the year. It traded around lows last seen in the first half of 2021.
It might be a good time to look closely at Enbridge shares for investors who can handle the potential short-term volatility brought on by this acquisition and who have faith in management’s ability to manage the integration.
Enbridge’s stock price is up 0.0301%:
On Thursday, September 7, 2023, the price of Enbridge shares increased by 0.0301% from $33.21 to $33.22. The stock’s latest trading day saw 1.30% of its daily range between a low of $33.00 and a high of $33.43. Despite price increases in six of the previous ten days, the price is still down by -3.54% for this time frame.
On the last day, volume decreased by 26 million shares. Also, 9 million shares were bought and sold for a total of roughly $294.85 million. Investors should be aware that divergence is caused by declining volume at higher prices. It may serve as an alert to changes that could occur over the next several days.
The stock is currently in the lowest level of a downward trend. It frequently offers a fantastic buying opportunity. A breach of the lower trend floor at $33.16 will first signal a faster fall pace.
Given the short-term trend, the stock is predicted to decline by -8.01% over the following three months. Also, with a 90% likelihood, keep its price between $30.50 and $33.21 at the end of this time frame.
Please take note that our projection target will start to change favorably over the following few days if the stock price remains at current levels or higher. It’s because the conditions for the present predictions will be violated.
Signals and Forecast for ENB:
On Wednesday, September 6, 2023, a buy signal was sent from a pivot bottom point. It has increased by 0.0301%. Up until the discovery of a new top pivot, a further increase is predicted. Additionally, the 3-month moving average convergence divergence (MACD) has generated a
buy signal. Despite price increases during the most recent trading day, volume decreased. Volume and price start to diverge as a result, which could be an early signal.
The stock needs to be regularly monitored. Additionally, certain unfavorable signals were sent, and they may have had an impact on evolution in the near future.
Both the short-term and long-term moving averages on Enbridge stock have given sell signals. This indicates a more dire outlook for the company’s stock.
In addition, a general sell signal may be derived from the relationship between the two signals when the long-term average is higher than the short-term average.
Enbridge Inc. Stock Prediction (ENB) analysis:
Our article uses a unique deep learning-based algorithm to help viewers determine whether ENB would be a good addition to their portfolios. These forecasts take into account a number of factors.The price of ENB stock as of September 8, 2023, is $33.22. In the last month, it has moved -7.70%, and on the last day, ENB has increased by +0.03%.
The table below provides the price history of Enbridge Inc. (ENB) stock for a series of trading days. Each row in the table contains specific information for a particular trading day.
The closing price of the stock as compared to the closing price of the previous trading day is shown in the change column as a percentage change.
A rise in price from the previous day’s close is indicated by a positive percentage change (+0.03%). A drop in price is shown by a negative percentage change (-5.89%). For instance, the price of ENB stock increased slightly by 0.03% on September 7, 2023.
|Date||High||Low||High – Low||Volume||% Change|
|Sep 07, 2023||33.43||33.00||0.4300||8,915,686||+0.03%|
|Sep 06, 2023||33.72||32.90||0.8200||36,106,870||-5.89%|
|Sep 05, 2023||35.63||35.27||0.3600||4,341,021||-0.62%|
|Sep 01, 2023||35.68||35.30||0.3800||6,124,986||+1.23%|
|Aug 31, 2023||35.45||35.08||0.3750||4,710,666||-0.51%|
|Aug 30, 2023||35.45||35.21||0.2400||2,859,571||+0.57%|
|Aug 29, 2023||35.11||34.62||0.4860||2,586,014||+1.07%|
|Aug 28, 2023||34.83||34.49||0.3405||6,003,183||+0.84%|
|Aug 25, 2023||34.52||34.24||0.2750||3,587,731||+0.64%|
|Aug 24, 2023||34.52||34.17||0.3499||3,401,712||-0.75%|
|Aug 23, 2023||34.53||33.96||0.5700||2,670,605||+0.41%|
|Aug 22, 2023||34.88||34.27||0.6049||2,891,107||-1.24%|
|Aug 21, 2023||35.11||34.55||0.5607||4,603,469||-0.40%|
|Aug 18, 2023||34.96||34.60||0.3550||4,599,577||+0.03%|
|Aug 17, 2023||35.10||34.74||0.3600||4,529,140||+0.72%|
|Aug 16, 2023||34.91||34.52||0.3900||5,991,461||-0.32%|
|Aug 15, 2023||35.52||34.69||0.8300||5,017,318||-2.44%|
|Aug 14, 2023||36.22||35.44||0.7800||8,209,272||-3.08%|
|Aug 11, 2023||36.88||36.41||0.4700||11,632,002||+0.74%|
|Aug 10, 2023||36.90||36.33||0.5750||3,934,914||-0.11%|
In this in-depth research, we provide a thorough review of the price changes in Enbridge Inc. stock over the years. Investors can learn a lot about the historical performance and volatility of ENB shares by examining the year-by-year statistics.
This thorough analysis of Enbridge Inc.’s stock price history offers a basis for understanding how the company’s stock has changed over time, from key milestones and volatility to prominent trends.
Here’s a new table for Enbridge Inc (ENB) stock price history for the year 2023:
|Date||High||Low||High – Low||Volume||% Change|
This table shows the high and low prices, as well as the high-low price range, trading volume, and the percentage change in the stock’s closing price for each month in 2023. It enables you to observe how the stock’s performance changed over the course of the year, taking into account monthly price variations and changes in trading volume.
Is this the time to purchase Enbridge Inc. shares (ENB)?
Our prediction method expects the stock’s future price to be $36.38 (+9.52%) after a year. As a result, if you invest $100 today, it might be worth $109.5 on September 8, 2024. Considering
that trading in bullish markets is always much simpler, this suggests that this stock is an excellent addition to your portfolio.
Price Prediction for Enbridge Inc. Stock (ENB) in 2024:
A forecast is provided for each month of 2024 for the price of Enbridge Inc. stock (ENB), with an average price prognosis of $39.60. It will have a high price forecast of $40.80 and a low price forecast of $31.56. The average ENB price forecast for 2024 reflects an increase of +19.21% over the previous price of $33.22 (current price).
Here’s a new table summarizing the monthly performance of Enbridge Inc. (ENB) stock for the year 2024:
|Month||Average||Low||High||Change from Today’s Price|
Price Prediction for Enbridge Inc. Stock (ENB) in 2025:
A forecast is provided for each month of 2025 for the price of Enbridge Inc. stock (ENB), with an average price forecast of $32.81. It will have a high price forecast of $45.94 and a low price forecast of $25.36. According to the average ENB price forecast for 2025, the previous price of $33.22 will decrease by -1.22%.
Here’s a new table summarizing the monthly performance of Enbridge Inc. (ENB) stock for the year 2025:
|Month||Average||Low||High||Change from Today’s Price|
Major Holders of Enbridge Inc. (ENB) Stock:
A minimum of 0.16% of Enbridge Inc. (ENB) shares are held by insiders, according to the company’s significant shareholders. This suggests that only a small portion of the ownership is held by the business.
Institutional investors hold a huge majority of the shares, approximately 53.70 percent of the total. This shows the significant interest and funding from powerful financial entities.
Institutions also hold 53.79% of the float, which reflects the shares that are accessible for public trade.
Enbridge Inc.’s appeal among institutional investors is seen in the fact that 1,554 institutions own shares of the company. Thus solidifying its position as a major participant in the financial markets.
Enbridge stock’s price performance:
The share’s market capitalization is C$91.85 billion, its PE ratio is 24.19, its P/E/G is 1.16, and its beta is 0.90. The debt-to-equity ratio for the company is 124.11, the current ratio is 0.64, and the quick ratio is 0.44. The company’s 50-day and 200-day moving average prices are C$48.08 and C$50.17, respectively.
The most recent earnings report from Enbridge (ENB) was released on Friday, August 4. Earnings per share for the quarter were C$0.68. It is exceeding the consensus estimate of C$0.67 by C$0.01. In contrast to the average forecast of C$10.08 billion, the company’s revenue for the quarter was C$10.43 billion.
Enbridge achieved an equity return of 6.44% and a net margin of 8.70%. Enbridge Inc. is projected by research experts to report 2.9373385 earnings per share for the current year.
Dividend cut by Enbridge:
Additionally, the business just announced a quarterly dividend that was distributed on Friday, September 1. A $0.8875 dividend was paid to shareholders of record on Tuesday, August 15.
This dividend’s ex-dividend date fell on Monday, August 14. With an annualized dividend yield of 7.81%, this amounts to a $3.55 dividend. The current dividend payout ratio (DPR) for Enbridge is 188.83%.
Wall Street experts predict Enbridge stock to be a strong investment in 2023:
The three Wall Street analysts that follow ENB stock concur that ENB stock should be purchased. One analyst out of three recommends ENB as a strong buy; one analyst
recommends ENB as a buy; one analyst recommends ENB as a hold; zero analysts suggest ENB as a sell; and zero analysts recommend ENB as a strong sell.
In the energy industry, Enbridge already has one of the least risky business models. A very reliable and expanding cash flow is produced by its diverse array of regulated and heavily contracted energy infrastructure operations. They gave it the boost that it needed to pay a dividend that is both appealing and increasing.
By purchasing three natural gas utilities from Dominion, the company will further improve the quality of its cash flow. It is taking advantage of what it sees as a once-in-a-generation chance to purchase premium utility businesses at a competitive price by using its strong balance sheet.
They will raise the standard of Enbridge’s cash flow even further, giving its dividend an even more solid foundation. For investors looking for a steady source of income with little risk, this makes its massive payout even more alluring.