Canadian Pacific Kansas City (NYSE:CP) Reaches New 12-Month High – Should You Buy?

Canadian Pacific Kansas City Limited (NYSE:CP) (TSE:CP)’s stock price hit a new 52-week high on Monday . The stock traded as high as $91.52 and last traded at $89.4260, with a volume of 135598 shares traded. The stock had previously closed at $90.08.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on the stock. ATB Cormark Capital Markets cut shares of Canadian Pacific Kansas City from a “strong-buy” rating to a “moderate buy” rating in a research note on Friday, April 17th. National Bank Financial upgraded Canadian Pacific Kansas City from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, April 15th. Canadian Imperial Bank of Commerce set a $140.00 target price on Canadian Pacific Kansas City in a research report on Tuesday, June 9th. Wall Street Zen upgraded Canadian Pacific Kansas City from a “sell” rating to a “hold” rating in a research report on Saturday, May 30th. Finally, Weiss Ratings restated a “hold (c+)” rating on shares of Canadian Pacific Kansas City in a report on Friday, May 29th. One research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Canadian Pacific Kansas City has an average rating of “Moderate Buy” and a consensus target price of $103.22.

Canadian Pacific Kansas City Stock Performance

The stock has a market capitalization of $79.18 billion, a PE ratio of 27.55, a price-to-earnings-growth ratio of 1.93 and a beta of 1.09. The firm’s fifty day moving average is $85.52 and its 200-day moving average is $80.26. The company has a current ratio of 0.67, a quick ratio of 0.57 and a debt-to-equity ratio of 0.46.

Canadian Pacific Kansas City (NYSE:CP) (TSE:CP) last issued its quarterly earnings data on Wednesday, April 29th. The transportation company reported $0.76 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.78 by ($0.02). The company had revenue of $2.66 billion during the quarter, compared to analysts’ expectations of $2.70 billion. Canadian Pacific Kansas City had a net margin of 27.20% and a return on equity of 8.86%. The firm’s quarterly revenue was down 2.5% on a year-over-year basis. During the same quarter last year, the firm posted $1.06 earnings per share. As a group, research analysts anticipate that Canadian Pacific Kansas City Limited will post 3.76 earnings per share for the current year.

Canadian Pacific Kansas City Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, July 27th. Shareholders of record on Friday, June 26th will be given a $0.268 dividend. The ex-dividend date of this dividend is Friday, June 26th. This represents a $1.07 annualized dividend and a yield of 1.2%. This is an increase from Canadian Pacific Kansas City’s previous quarterly dividend of $0.23. Canadian Pacific Kansas City’s dividend payout ratio is presently 20.68%.

Hedge Funds Weigh In On Canadian Pacific Kansas City

Several institutional investors have recently bought and sold shares of the company. Prosperity Bancshares Inc acquired a new position in shares of Canadian Pacific Kansas City during the fourth quarter worth about $26,000. Gilpin Wealth Management LLC purchased a new stake in Canadian Pacific Kansas City during the fourth quarter worth approximately $29,000. McMillan Office Inc. purchased a new stake in Canadian Pacific Kansas City during the fourth quarter worth approximately $31,000. Wealth Watch Advisors INC purchased a new stake in Canadian Pacific Kansas City during the third quarter worth approximately $36,000. Finally, Acadian Asset Management LLC purchased a new stake in Canadian Pacific Kansas City in the first quarter valued at approximately $35,000. 72.20% of the stock is owned by institutional investors and hedge funds.

Canadian Pacific Kansas City Company Profile

Canadian Pacific Kansas City (CPKC) is a North American Class I freight railroad formed through the combination of Canadian Pacific Railway and Kansas City Southern. The merged company operates an integrated rail network that spans Canada, the United States and Mexico, providing a single-line rail connection across all three countries. This transborder footprint is intended to streamline cross-border freight flows and provide shippers with direct rail access from Canadian and U.S. production centers to Mexican markets and ports.

CPKC’s core business is freight transportation and related logistics services.