TC Energy Upgraded to Strong Buy by CIBC Capital Markets

Shares of TC Energy (NYSE: TRP) received a significant boost as CIBC Capital Markets upgraded its rating from “hold” to “strong buy.” This change was reported on November 6, 2023, indicating a positive outlook on the company’s performance. The upgrade aligns with a broader trend among financial institutions reassessing the stock, as several brokerages have recently shared their insights.

In addition to CIBC’s upgrade, Barclays reaffirmed an “overweight” rating on TC Energy shares on October 14. Conversely, Wall Street Zen downgraded the stock from “hold” to “sell” on October 3. Meanwhile, TD Securities maintained a “buy” rating, and Scotiabank reiterated an “outperform” rating on October 20. Notably, US Capital Advisors downgraded the stock from “moderate buy” to “hold” on August 21. Overall, the consensus rating for TC Energy is currently classified as “moderate buy,” with an average price target of $77.00.

Recent Performance and Dividend Increase

On the day of the upgrade, TC Energy’s stock opened at $52.18. The company has shown stability with a 50-day moving average of $52.17 and a 200-day moving average of $50.31. Over the past year, the stock has fluctuated between a low of $43.51 and a high of $55.37. TC Energy has a market capitalization of $54.29 billion and a P/E ratio of 17.81, reflecting a solid financial foundation.

TC Energy recently announced an increase in its quarterly dividend, which is set to be paid on January 30, 2024. Shareholders on record as of December 31, 2023, will receive a dividend of $0.85, up from the previous $0.61. This equates to an annualized dividend of $3.40 and a yield of 6.5%, demonstrating the company’s commitment to returning value to its shareholders.

Investment Activity and Market Position

Institutional investors have been actively buying and selling shares of TC Energy. For instance, Hilltop National Bank acquired a new position during the second quarter valued at approximately $32,000. Westside Investment Management Inc. doubled its stake in the third quarter, increasing its holdings to 594 shares, now worth $32,000. Moreover, Harbor Asset Planning Inc. and Smartleaf Asset Management LLC also made significant investments, reflecting strong institutional interest. Currently, institutional investors own approximately 83.13% of TC Energy’s stock.

TC Energy operates as an energy infrastructure company across North America, managing a network of 93,600 kilometers of natural gas pipelines. These pipelines transport gas from various supply basins to local distribution companies, power generation plants, and industrial facilities, among others. The company is structured into five segments, including Canadian Natural Gas Pipelines and U.S. Natural Gas Pipelines.

As TC Energy continues to adapt to market conditions and enhance its operational strategies, the recent upgrades and dividend increases suggest a positive trajectory for the company, positioning it favorably for future growth and investor confidence.