Kansas City Southern (KSU) Lowered to “Hold” at Zacks Investment Research
Kansas City Southern (NYSE:KSU) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Wednesday.
According to Zacks, “Kansas City Southern, with its wide cross-country network, remains focused on growing opportunities in cross-border intermodal businesses between the U.S. and Mexico. The company has a dominant position on the U.S.-Mexico routes. Moreover, the company’s consistent efforts to expand its business, its ability to hike prices and efforts to reduce costs continue to impress. We are also impressed by the company's efforts to reward its shareholders. However, like most railroads, the company has been adversely affected by weakness in the energy segment. The Mexican peso depreciation is another headwind. However, the company's top line is expected to improve in the second half of the year.”
Several other research analysts have also recently commented on the company. Loop Capital reaffirmed a “buy” rating and issued a $113.00 target price (down from $115.00) on shares of Kansas City Southern in a research report on Wednesday. BMO Capital Markets reaffirmed a “market perform” rating and issued a $98.00 target price on shares of Kansas City Southern in a research report on Tuesday. Credit Suisse Group AG reaffirmed a “hold” rating and issued a $101.00 target price on shares of Kansas City Southern in a research report on Tuesday, September 13th. Citigroup Inc. lifted their price objective on Kansas City Southern from $109.00 to $110.00 and gave the company a “buy” rating in a report on Tuesday, September 13th. Finally, Barclays PLC raised Kansas City Southern from an “underweight” rating to an “equal weight” rating and lifted their price objective for the company from $94.00 to $99.00 in a report on Monday, September 12th. One investment analyst has rated the stock with a sell rating, eleven have assigned a hold rating, ten have assigned a buy rating and one has given a strong buy rating to the company’s stock. Kansas City Southern presently has a consensus rating of “Hold” and a consensus price target of $100.92.
Shares of Kansas City Southern (NYSE:KSU) traded up 1.37% on Wednesday, hitting $93.36. 262,940 shares of the stock traded hands. The stock has a market cap of $10.08 billion, a price-to-earnings ratio of 20.32 and a beta of 1.14. The stock has a 50-day moving average price of $94.57 and a 200 day moving average price of $92.42. Kansas City Southern has a 12-month low of $62.20 and a 12-month high of $100.69.
Kansas City Southern (NYSE:KSU) last announced its quarterly earnings data on Tuesday, July 19th. The company reported $1.22 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.08 by $0.14. The business had revenue of $569 million for the quarter, compared to the consensus estimate of $572.20 million. Kansas City Southern had a net margin of 21.13% and a return on equity of 12.00%. On average, analysts anticipate that Kansas City Southern will post $4.75 earnings per share for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 5th. Stockholders of record on Monday, September 12th will be given a dividend of $0.33 per share. The ex-dividend date is Thursday, September 8th. This represents a $1.32 annualized dividend and a dividend yield of 1.43%. Kansas City Southern’s payout ratio is currently 28.82%.
In related news, CEO Patrick J. Ottensmeyer sold 5,000 shares of the business’s stock in a transaction that occurred on Thursday, August 4th. The stock was sold at an average price of $95.62, for a total value of $478,100.00. Following the completion of the transaction, the chief executive officer now directly owns 90,228 shares in the company, valued at approximately $8,627,601.36. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider David L. Starling sold 5,100 shares of the business’s stock in a transaction that occurred on Wednesday, July 20th. The shares were sold at an average price of $98.88, for a total value of $504,288.00. The disclosure for this sale can be found here. 0.86% of the stock is owned by corporate insiders.
Several institutional investors have recently modified their holdings of the stock. Seven Bridges Advisors LLC raised its position in shares of Kansas City Southern by 30.0% in the second quarter. Seven Bridges Advisors LLC now owns 1,200 shares of the company’s stock valued at $108,000 after buying an additional 277 shares in the last quarter. Mizuho Asset Management Co. Ltd. raised its position in shares of Kansas City Southern by 57.8% in the second quarter. Mizuho Asset Management Co. Ltd. now owns 1,425 shares of the company’s stock valued at $128,000 after buying an additional 522 shares in the last quarter. Meeder Asset Management Inc. raised its position in shares of Kansas City Southern by 1,065.2% in the second quarter. Meeder Asset Management Inc. now owns 1,538 shares of the company’s stock valued at $138,000 after buying an additional 1,406 shares in the last quarter. Washington Trust Bank raised its position in shares of Kansas City Southern by 3.2% in the third quarter. Washington Trust Bank now owns 1,651 shares of the company’s stock valued at $154,000 after buying an additional 51 shares in the last quarter. Finally, Pacer Advisors Inc. raised its position in shares of Kansas City Southern by 8.6% in the second quarter. Pacer Advisors Inc. now owns 2,160 shares of the company’s stock valued at $195,000 after buying an additional 171 shares in the last quarter. Institutional investors and hedge funds own 91.33% of the company’s stock.
About Kansas City Southern
Kansas City Southern (KCS) is a transportation holding company with domestic and international rail operations in North America that are focused on the north/south freight corridor connecting commercial and industrial markets in the central United States with industrial cities in Mexico. The Company controls and owns The Kansas City Southern Railway Company (KCSR), a United States Class I railroad that serves a 10-state region in the midwest and southeast regions of the United States and has the shortest north/south rail route between Kansas City, Missouri and several key ports along the Gulf of Mexico in Alabama, Louisiana, Mississippi and Texas.
Receive News & Stock Ratings for Kansas City Southern Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Kansas City Southern and related stocks with our FREE daily email newsletter.