Canadian Pacific Kansas City (NYSE:CP) Cut to Sell at Wall Street Zen

Wall Street Zen lowered shares of Canadian Pacific Kansas City (NYSE:CP) (TSE:CP) from a hold rating to a sell rating in a research report released on Saturday morning.

CP has been the subject of several other reports. Royal Bank Of Canada reaffirmed an “outperform” rating on shares of Canadian Pacific Kansas City in a report on Wednesday, June 24th. ATB Cormark Capital Markets cut shares of Canadian Pacific Kansas City from a “strong-buy” rating to a “moderate buy” rating in a research report on Friday, April 17th. Argus set a $105.00 price objective on shares of Canadian Pacific Kansas City in a research note on Tuesday, June 16th. Weiss Ratings upgraded shares of Canadian Pacific Kansas City from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, July 2nd. Finally, National Bank Financial raised shares of Canadian Pacific Kansas City from a “hold” rating to a “strong-buy” rating in a report on Wednesday, April 15th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $104.91.

Canadian Pacific Kansas City Stock Down 2.2%

CP opened at $91.64 on Friday. The stock has a fifty day moving average of $88.38 and a 200-day moving average of $82.95. The company has a market capitalization of $81.10 billion, a P/E ratio of 28.28, a P/E/G ratio of 1.87 and a beta of 1.10. Canadian Pacific Kansas City has a fifty-two week low of $68.42 and a fifty-two week high of $93.95. The company has a debt-to-equity ratio of 0.46, a quick ratio of 0.57 and a current ratio of 0.67.

Canadian Pacific Kansas City (NYSE:CP) (TSE:CP) last released its quarterly earnings results on Wednesday, April 29th. The transportation company reported $0.76 EPS for the quarter, missing the consensus estimate of $0.78 by ($0.02). Canadian Pacific Kansas City had a net margin of 27.20% and a return on equity of 8.86%. The business had revenue of $2.66 billion during the quarter, compared to analyst estimates of $2.70 billion. During the same quarter last year, the company posted $1.06 earnings per share. The company’s revenue was down 2.5% on a year-over-year basis. On average, equities analysts expect that Canadian Pacific Kansas City will post 3.68 EPS for the current year.

Canadian Pacific Kansas City Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, July 27th. Investors of record on Friday, June 26th will be given a dividend of $0.268 per share. The ex-dividend date is Friday, June 26th. This represents a $1.07 dividend on an annualized basis and a yield of 1.2%. This is a positive change from Canadian Pacific Kansas City’s previous quarterly dividend of $0.23. Canadian Pacific Kansas City’s dividend payout ratio is currently 24.07%.

Institutional Investors Weigh In On Canadian Pacific Kansas City

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Norges Bank purchased a new stake in shares of Canadian Pacific Kansas City during the fourth quarter worth about $978,558,000. Janus Henderson Group PLC increased its holdings in Canadian Pacific Kansas City by 586.1% during the 4th quarter. Janus Henderson Group PLC now owns 6,147,835 shares of the transportation company’s stock valued at $452,781,000 after purchasing an additional 5,251,755 shares during the period. FIL Ltd raised its position in Canadian Pacific Kansas City by 20.2% during the 4th quarter. FIL Ltd now owns 16,666,777 shares of the transportation company’s stock valued at $1,227,045,000 after purchasing an additional 2,804,686 shares during the last quarter. Bessemer Group Inc. raised its position in Canadian Pacific Kansas City by 5,826.3% during the 1st quarter. Bessemer Group Inc. now owns 2,545,049 shares of the transportation company’s stock valued at $199,605,000 after purchasing an additional 2,502,104 shares during the last quarter. Finally, Canoe Financial LP lifted its holdings in Canadian Pacific Kansas City by 45,389.7% in the 1st quarter. Canoe Financial LP now owns 2,032,478 shares of the transportation company’s stock worth $159,885,000 after buying an additional 2,028,010 shares during the period. Institutional investors own 72.20% of the company’s stock.

About Canadian Pacific Kansas City

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.