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

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

A number of other brokerages have also issued reports on CP. Royal Bank Of Canada reaffirmed an “outperform” rating and set a $124.00 price target (down from $127.00) on shares of Canadian Pacific Kansas City in a research note on Thursday, January 29th. Barclays set a $93.00 price objective on Canadian Pacific Kansas City in a report on Thursday, January 29th. Evercore lowered their target price on Canadian Pacific Kansas City from $87.00 to $85.00 and set an “outperform” rating on the stock in a report on Thursday, January 29th. Citigroup cut their price target on shares of Canadian Pacific Kansas City from $88.00 to $86.00 and set a “buy” rating for the company in a report on Friday, January 30th. Finally, National Bank Financial lowered shares of Canadian Pacific Kansas City from a “strong-buy” rating to a “hold” rating in a research report on Thursday, January 8th. Ten investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, Canadian Pacific Kansas City presently has a consensus rating of “Moderate Buy” and a consensus target price of $92.00.

Canadian Pacific Kansas City Stock Down 1.9%

Canadian Pacific Kansas City stock opened at $85.19 on Tuesday. Canadian Pacific Kansas City has a 52 week low of $66.49 and a 52 week high of $89.42. The stock has a market cap of $76.50 billion, a price-to-earnings ratio of 26.37, a PEG ratio of 1.86 and a beta of 1.06. The company’s 50-day moving average price is $78.00 and its two-hundred day moving average price is $75.45. The company has a current ratio of 0.49, a quick ratio of 0.41 and a debt-to-equity ratio of 0.43.

Canadian Pacific Kansas City (NYSE:CP) (TSE:CP) last issued its quarterly earnings results on Wednesday, January 28th. The transportation company reported $0.95 earnings per share for the quarter, missing analysts’ consensus estimates of $0.99 by ($0.04). Canadian Pacific Kansas City had a return on equity of 8.91% and a net margin of 27.49%.The company had revenue of $2.85 billion during the quarter, compared to analyst estimates of $2.85 billion. During the same period in the prior year, the company posted $1.29 earnings per share. The company’s revenue was up 1.3% on a year-over-year basis. On average, analysts expect that Canadian Pacific Kansas City will post 3.42 EPS for the current fiscal year.

Canadian Pacific Kansas City Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, April 27th. Investors of record on Friday, March 27th will be paid a $0.228 dividend. The ex-dividend date of this dividend is Friday, March 27th. This represents a $0.91 dividend on an annualized basis and a yield of 1.1%. Canadian Pacific Kansas City’s dividend payout ratio (DPR) is currently 20.43%.

Institutional Trading of Canadian Pacific Kansas City

A number of hedge funds have recently bought and sold shares of the company. Dilation Capital Management LP lifted its stake in Canadian Pacific Kansas City by 4.4% during the third quarter. Dilation Capital Management LP now owns 170,269 shares of the transportation company’s stock worth $12,683,000 after purchasing an additional 7,105 shares during the period. Meixler Investment Management Ltd. bought a new position in shares of Canadian Pacific Kansas City during the 3rd quarter worth approximately $1,644,000. AGF Management Ltd. boosted its stake in Canadian Pacific Kansas City by 9.9% in the 3rd quarter. AGF Management Ltd. now owns 2,001,292 shares of the transportation company’s stock valued at $149,215,000 after buying an additional 180,419 shares in the last quarter. Nicola Wealth Management LTD. boosted its stake in Canadian Pacific Kansas City by 46.8% in the 3rd quarter. Nicola Wealth Management LTD. now owns 141,500 shares of the transportation company’s stock valued at $10,539,000 after buying an additional 45,100 shares in the last quarter. Finally, Envestnet Asset Management Inc. grew its position in Canadian Pacific Kansas City by 1.3% in the third quarter. Envestnet Asset Management Inc. now owns 1,127,435 shares of the transportation company’s stock valued at $83,985,000 after acquiring an additional 14,916 shares during the period. 72.20% of the stock is owned by hedge funds and other institutional investors.

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.