Kansas City Southern (KSU) Stock Price Down 1.6% on Disappointing Earnings
Kansas City Southern (NYSE:KSU) fell 1.6% on Tuesday following a dissappointing earnings announcement. The stock traded as low as $92.74 and last traded at $93.18, with a volume of 1,423,459 shares traded. The stock had previously closed at $94.71.
The company reported $1.12 earnings per share for the quarter, missing the Zacks’ consensus estimate of $1.22 by $0.10. Kansas City Southern had a net margin of 21.13% and a return on equity of 12.00%. The firm earned $605 million during the quarter, compared to analyst estimates of $411.30 million. During the same period in the previous year, the firm posted $1.21 earnings per share. The company’s quarterly revenue was down 4.3% compared to the same quarter last year.
The company also recently disclosed a quarterly dividend, which was paid on Wednesday, October 5th. Stockholders of record on Monday, September 12th were paid a $0.33 dividend. The ex-dividend date of this dividend was Thursday, September 8th. This represents a $1.32 dividend on an annualized basis and a dividend yield of 1.43%. Kansas City Southern’s payout ratio is presently 28.82%.
A number of brokerages have recently weighed in on KSU. RBC Capital Markets reaffirmed an “outperform” rating and issued a $114.00 price objective (up from $109.00) on shares of Kansas City Southern in a research note on Wednesday, July 20th. Barclays PLC lifted their price objective on Kansas City Southern from $73.00 to $79.00 and gave the company an “underweight” rating in a research note on Wednesday, July 20th. Credit Suisse Group AG reissued a “neutral” rating and set a $101.00 target price (up from $99.00) on shares of Kansas City Southern in a research note on Friday, July 22nd. Citigroup Inc. boosted their target price on Kansas City Southern from $109.00 to $110.00 and gave the stock a “buy” rating in a research note on Tuesday, September 13th. Finally, Atlantic Securities began coverage on Kansas City Southern in a research note on Thursday, August 11th. They set a “neutral” rating and a $113.00 target price for the company. One equities research analyst has rated the stock with a sell rating, eleven have given a hold rating, ten have issued a buy rating and one has issued a strong buy rating to the company’s stock. The company currently has a consensus rating of “Hold” and a consensus price target of $100.92.
In other Kansas City Southern news, CEO Patrick J. Ottensmeyer sold 5,000 shares of the stock in a transaction on Thursday, August 4th. The shares were sold at an average price of $95.62, for a total value of $478,100.00. Following the sale, the chief executive officer now directly owns 90,228 shares in the company, valued at $8,627,601.36. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CFO Michael W. Upchurch sold 5,367 shares of the stock in a transaction on Friday, July 29th. The stock was sold at an average price of $95.18, for a total transaction of $510,831.06. Following the completion of the sale, the chief financial officer now owns 16,808 shares in the company, valued at $1,599,785.44. The disclosure for this sale can be found here. 0.86% of the stock is currently owned by company insiders.
Large investors have recently bought and sold shares of the company. Geode Capital Management LLC raised its stake in Kansas City Southern by 1.9% in the first quarter. Geode Capital Management LLC now owns 889,091 shares of the company’s stock valued at $75,820,000 after buying an additional 16,716 shares during the period. National Investment Services Inc. WI purchased a new stake in Kansas City Southern during the second quarter valued at $1,940,000. Investment House LLC raised its stake in Kansas City Southern by 0.9% in the second quarter. Investment House LLC now owns 2,572 shares of the company’s stock valued at $232,000 after buying an additional 22 shares during the period. Cleararc Capital Inc. purchased a new stake in Kansas City Southern during the first quarter valued at $226,000. Finally, Gulf International Bank UK Ltd raised its stake in Kansas City Southern by 0.5% in the second quarter. Gulf International Bank UK Ltd now owns 33,141 shares of the company’s stock valued at $2,985,000 after buying an additional 150 shares during the period. Institutional investors own 91.30% of the company’s stock.
The stock has a market cap of $10.00 billion, a P/E ratio of 20.15 and a beta of 1.14. The firm has a 50 day moving average of $93.17 and a 200-day moving average of $92.96.
Kansas City Southern Company Profile
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.
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