TC Energy Receives Upgrades as Analysts Adjust Ratings
TC Energy (NYSE: TRP) has been upgraded from a sell rating to a hold rating by Wall Street Zen, as detailed in a report released on Saturday. This shift reflects a broader trend among analysts adjusting their perspectives on the company’s stock, which is traded both on the New York Stock Exchange and the Toronto Stock Exchange (TSE: TRP).
Analysts’ Ratings Overview
In recent days, several financial institutions have made notable adjustments to their ratings for TC Energy. On October 14, Barclays reaffirmed an “overweight” rating for the company. Meanwhile, on December 22, Weiss Ratings reiterated a “buy (b-)” rating.
Additionally, the Royal Bank of Canada raised its price target for TC Energy from $74.00 to $84.00 on November 7, assigning an “outperform” rating. Conversely, CIBC World Markets downgraded the stock from a “strong-buy” to a “hold” rating on October 9. In the same week, BMO Capital Markets upgraded it from a “market perform” rating to “outperform.”
Currently, the consensus among analysts indicates two ratings of Strong Buy, seven Buy ratings, and three Hold ratings. According to MarketBeat.com, TC Energy holds a consensus rating of “Moderate Buy” with a price target of $84.00.
Recent Financial Performance and Dividend Increase
On November 6, TC Energy reported its earnings results, revealing earnings per share of $0.56, which met analysts’ expectations. The company recorded a net margin of 23.86% and a return on equity of 10.61%. Revenue for the quarter reached $1.86 billion, significantly lower than the anticipated $2.63 billion. In the same period last year, the firm had earnings of $1.03 per share.
Looking ahead, analysts forecast that TC Energy will achieve earnings of $2.63 per share for the current fiscal year. In addition to its financial results, the company has announced a quarterly dividend of $0.85 per share, payable on January 30, 2024. This marks an increase from the previous dividend of $0.61, resulting in an annualized figure of $3.40 and a yield of 6.1%. The ex-dividend date is set for December 31, 2023.
Institutional Investor Activity
Recent activity among institutional investors reflects growing confidence in TC Energy. Vanguard Group Inc. increased its holdings by 2.0% during the third quarter, now owning approximately 46.82 million shares valued at around $2.55 billion. Similarly, Capital Research Global Investors raised its stake by 2.5%, bringing its total ownership to nearly 41.98 million shares worth about $2.28 billion.
The Canada Pension Plan Investment Board boosted its shares by 5.9% during the second quarter, while TD Asset Management Inc. increased its stake by 2.9% in the third quarter. Notably, Goldman Sachs Group Inc. has significantly expanded its position by 2,565.1% in the first quarter, now holding over 16.31 million shares valued at approximately $769.82 million.
Overall, approximately 83.13% of TC Energy’s shares are currently held by institutional investors, highlighting the strong interest in the company’s stock.
About TC Energy
Based in Calgary, Alberta, TC Energy is a leading energy infrastructure company in North America. Formerly known as TransCanada, the company rebranded to reflect its extensive operations across Canada, the United States, and Mexico. TC Energy develops and manages a diverse portfolio of energy infrastructure, focusing on long-distance natural gas transmission, crude oil pipelines, natural gas storage, and power generation.
As TC Energy continues to navigate the energy landscape, its recent upgrades and strategic financial decisions position it for potential growth in the coming fiscal year.
