South Bow Corp (NYSE: SOBO)’s stock price has soared by 0.19 in relation to previous closing price of 26.68. Nevertheless, the company has seen a loss of -0.22% in its stock price over the last five trading days. seekingalpha.com reported 2025-05-22 that SOBO offers an 8% secured dividend yield, backed by predictable cash flows from long-term ‘take-or-pay’ contracts and a strong business moat. The Keystone Pipeline’s duopoly position and high barriers to entry ensure stable margins and minimal price competition, making SOBO a resilient income play. Valuation is fair relative to peers, with SOBO trading at 10.5x EV/EBITDA, reflecting its single-asset risk and slightly higher leverage.
Is It Worth Investing in South Bow Corp (NYSE: SOBO) Right Now?
South Bow Corp (NYSE: SOBO) has a price-to-earnings ratio of 34.70x that is above its average ratio. There are mixed opinions on the stock, with 2 analysts rating it as a “buy,” 1 rating it as “overweight,” 10 rating it as “hold,” and 2 rating it as “sell.”
The public float for SOBO is 207.88M and currently, short sellers hold a 2.22% ratio of that float. The average trading volume of SOBO on June 12, 2025 was 905.28K shares.
SOBO’s Market Performance
SOBO’s stock has seen a -0.22% decrease for the week, with a 6.28% rise in the past month and a 4.09% gain in the past quarter. The volatility ratio for the week is 1.02%, and the volatility levels for the past 30 days are at 1.81% for South Bow Corp The simple moving average for the past 20 days is 2.40% for SOBO’s stock, with a 7.59% simple moving average for the past 200 days.
Analysts’ Opinion of SOBO
Many brokerage firms have already submitted their reports for SOBO stocks, with JP Morgan repeating the rating for SOBO by listing it as a “Neutral.” The predicted price for SOBO in the upcoming period, according to JP Morgan is $28 based on the research report published on March 28, 2025 of the current year 2025.
SOBO Trading at 6.02% from the 50-Day Moving Average
After a stumble in the market that brought SOBO to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -3.15% of loss for the given period.
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Insider Trading
Reports are indicating that there were more than several insider trading activities at SOBO starting from Bevin Wirzba, who proposed sale 140,836 shares at the price of $25.68 back on Mar 13 ’25. After this action, Bevin Wirzba now owns shares of South Bow Corp, valued at $3,616,668 using the latest closing price.
Richard Prior, the Senior Vice-President & COO of South Bow Corp, proposed sale 56,546 shares at $36.00 during a trade that took place back on Dec 02 ’24, which means that Richard Prior is holding shares at $2,035,658 based on the most recent closing price.
Stock Fundamentals for SOBO
Current profitability levels for the company are sitting at:
- 0.33 for the present operating margin
- 0.81 for the gross margin
The net margin for South Bow Corp stands at 0.11. The total capital return value is set at 0.04. Equity return is now at value 17.80, with 4.14 for asset returns.
Based on South Bow Corp (SOBO), the company’s capital structure generated 0.69 points at debt to capital in total, while cash flow to debt ratio is standing at 0.09. The debt to equity ratio resting at 2.19. The interest coverage ratio of the stock is 1.69.
Currently, EBITDA for the company is 991.0 million with net debt to EBITDA at 11.05. When we switch over and look at the enterprise to sales, we see a ratio of 12.72. The receivables turnover for the company is 0.81for trailing twelve months and the total asset turnover is 0.09. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.29.
Conclusion
In conclusion, South Bow Corp (SOBO) has seen better performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
