Canadian Pacific Kansas City (TSE:CP) Stock Price Crosses Below Fifty Day Moving Average After Analyst Downgrade

Canadian Pacific Kansas City Limited (TSE:CP) (NYSE:CP) crossed below its 50-day moving average during trading on Thursday after Desjardins lowered their price target on the stock from C$143.00 to C$141.00. The stock has a 50-day moving average of C$124.56 and traded as low as C$120.82. Desjardins currently has a buy rating on the stock. Canadian Pacific Kansas City shares last traded at C$123.70, with a volume of 1,496,336 shares trading hands.

A number of other equities analysts have also issued reports on the stock. Stifel Nicolaus set a C$150.00 target price on shares of Canadian Pacific Kansas City and gave the stock a “buy” rating in a research report on Tuesday. Raymond James Financial set a C$144.00 price target on shares of Canadian Pacific Kansas City and gave the company an “outperform” rating in a research report on Monday, October 19th. Stephens upgraded shares of Canadian Pacific Kansas City to a “hold” rating in a research note on Wednesday, July 8th. ATB Cormark Capital Markets decreased their price target on shares of Canadian Pacific Kansas City from C$146.00 to C$144.00 and set an “outperform” rating for the company in a research note on Thursday. Finally, Royal Bank Of Canada raised their price objective on shares of Canadian Pacific Kansas City from C$145.00 to C$146.00 and gave the stock an “outperform” rating in a research report on Thursday, September 24th. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of C$139.41.

Insider Activity

In other news, insider Laird Joseph Pitz sold 24,630 shares of the company’s stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of C$135.08, for a total transaction of C$3,327,020.40. Also, insider Pamela Lynne Arpin sold 1,385 shares of the stock in a transaction on Friday, August 21st. The stock was sold at an average price of C$132.92, for a total value of C$184,094.20. Following the sale, the insider directly owned 4,578 shares of the company’s stock, valued at approximately C$608,507.76. This represents a 23.23% decrease in their ownership of the stock. Over the last 90 days, insiders have sold 78,015 shares of company stock valued at $10,505,115. Company insiders own 0.03% of the company’s stock.

Canadian Pacific Kansas City News Summary

Here are the key news stories impacting Canadian Pacific Kansas City this week:

• Positive Sentiment: Revenue and volumes increased: Third-quarter revenue reached C$4.22 billion, supported by higher freight volumes. The company reported earnings of C$1.28 per share, while its net margin remained a strong 25.04%. Canadian Pacific Kansas City Limited Q3 Sales Increase
• Positive Sentiment: Analysts remain broadly bullish: CIBC raised its price target to C$150, while Scotia increased its target to C$144 and National Bank Financial to C$142; all maintained or assigned positive “outperform” or “buy” ratings. Desjardins and ATB Cormark also retained bullish ratings, with targets of C$141 and C$144, respectively. Analyst target revisions
• Positive Sentiment: Coal-related business provides additional support: CPKC renewed its rail-service agreement with Elk Valley Resources, and coverage characterized a new coal deal as contributing to third-quarter growth. CPKC Renews Rail Service Deal
• Neutral Sentiment: Mixed target signals: Citigroup raised its target to C$106 and kept a “buy” rating, but its target remains below the current trading level. This contrasts with the higher targets from most other firms and highlights disagreement over near-term valuation. Citigroup analyst rating
• Negative Sentiment: Fuel costs pressured earnings: Reports described profits as flat or earnings as dented by higher fuel expenses, tempering the benefit from stronger sales and freight volumes. Canadian Pacific Kansas City reports flat profits amid higher fuel costs

Canadian Pacific Kansas City Stock Down 1.6%

The company has a debt-to-equity ratio of 56.46, a quick ratio of 0.42 and a current ratio of 0.52. The firm has a fifty day moving average price of C$124.56 and a 200 day moving average price of C$119.18. The firm has a market capitalization of C$108.74 billion, a price-to-earnings ratio of 28.77, a PEG ratio of 2.32 and a beta of 1.33.

Canadian Pacific Kansas City (TSE:CP) (NYSE:CP) last posted its quarterly earnings results on Wednesday, October 28th. The company reported C$1.28 earnings per share for the quarter. Canadian Pacific Kansas City had a return on equity of 8.37% and a net margin of 24.14%. The firm had revenue of C$4.22 billion for the quarter. As a group, sell-side analysts expect that Canadian Pacific Kansas City Limited will post 4.34 EPS for the current fiscal year.

Canadian Pacific Kansas City Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, October 26th. Shareholders of record on Monday, October 26th were issued a $0.2680 dividend. The ex-dividend date of this dividend was Friday, September 25th. This represents a $1.07 dividend on an annualized basis and a yield of 0.9%. Canadian Pacific Kansas City’s dividend payout ratio (DPR) is 22.14%.

Canadian Pacific Kansas City Company Profile

With its global headquarters in Calgary, Alta., Canada, CPKC is the first and only single-line transnational railway linking Canada, the United States and México, with unrivaled access to major ports from Vancouver to Atlantic Canada to the Gulf Coast to Lázaro Cárdenas, México. Stretching approximately 20,000 route miles and employing 20,000 railroaders, CPKC provides North American customers unparalleled rail service and network reach to key markets across the continent. CPKC is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise.