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 Saturday morning.

A number of other brokerages have also recently commented on CP. The Goldman Sachs Group reissued a “neutral” rating and issued a $91.00 price target on shares of Canadian Pacific Kansas City in a research report on Monday, June 2nd. Barclays boosted their price target on Canadian Pacific Kansas City from $87.00 to $91.00 and gave the stock an “overweight” rating in a research report on Thursday, July 10th. Bank of America boosted their price target on Canadian Pacific Kansas City from $82.00 to $90.00 and gave the stock a “buy” rating in a research report on Friday, May 16th. Stephens boosted their price target on Canadian Pacific Kansas City from $95.00 to $97.00 and gave the stock an “overweight” rating in a research report on Thursday, July 31st. Finally, Scotiabank reissued an “outperform” rating on shares of Canadian Pacific Kansas City in a research report on Thursday, July 10th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $92.30.

Canadian Pacific Kansas City Stock Performance

Canadian Pacific Kansas City stock opened at $75.88 on Friday. The company has a debt-to-equity ratio of 0.45, a quick ratio of 0.81 and a current ratio of 0.93. The stock’s 50 day simple moving average is $76.44 and its two-hundred day simple moving average is $76.39. Canadian Pacific Kansas City has a fifty-two week low of $66.49 and a fifty-two week high of $87.72. The stock has a market cap of $68.81 billion, a price-to-earnings ratio of 23.64, a PEG ratio of 2.10 and a beta of 1.06.

Canadian Pacific Kansas City (NYSE:CP) (TSE:CP) last issued its quarterly earnings results on Wednesday, July 30th. The transportation company reported $0.81 EPS for the quarter, missing analysts’ consensus estimates of $0.82 by ($0.01). Canadian Pacific Kansas City had a return on equity of 8.69% and a net margin of 28.05%.The company had revenue of $2.72 billion during the quarter, compared to the consensus estimate of $2.76 billion. During the same period in the prior year, the firm earned $1.05 earnings per share. The business’s revenue for the quarter was up 2.7% compared to the same quarter last year. As a group, analysts expect that Canadian Pacific Kansas City will post 3.42 earnings per share for the current fiscal year.

Canadian Pacific Kansas City Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, October 27th. Stockholders of record on Friday, September 26th will be paid a $0.1651 dividend. This is a positive change from Canadian Pacific Kansas City’s previous quarterly dividend of $0.16. The ex-dividend date is Friday, September 26th. This represents a $0.66 annualized dividend and a dividend yield of 0.9%. Canadian Pacific Kansas City’s dividend payout ratio (DPR) is currently 20.56%.

Institutional Investors Weigh In On Canadian Pacific Kansas City

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. increased its stake in shares of Canadian Pacific Kansas City by 2.9% in the 2nd quarter. Vanguard Group Inc. now owns 38,223,823 shares of the transportation company’s stock worth $3,036,558,000 after purchasing an additional 1,080,835 shares in the last quarter. TD Asset Management Inc increased its stake in shares of Canadian Pacific Kansas City by 0.7% in the 2nd quarter. TD Asset Management Inc now owns 21,002,374 shares of the transportation company’s stock worth $1,665,106,000 after purchasing an additional 136,970 shares in the last quarter. Invesco Ltd. increased its stake in shares of Canadian Pacific Kansas City by 15.1% in the 2nd quarter. Invesco Ltd. now owns 19,543,455 shares of the transportation company’s stock worth $1,549,210,000 after purchasing an additional 2,559,104 shares in the last quarter. Causeway Capital Management LLC increased its stake in shares of Canadian Pacific Kansas City by 11.5% in the 1st quarter. Causeway Capital Management LLC now owns 17,208,788 shares of the transportation company’s stock worth $1,207,605,000 after purchasing an additional 1,778,984 shares in the last quarter. Finally, Mackenzie Financial Corp increased its stake in shares of Canadian Pacific Kansas City by 0.9% in the 2nd quarter. Mackenzie Financial Corp now owns 16,498,767 shares of the transportation company’s stock worth $1,311,512,000 after purchasing an additional 150,963 shares in the last quarter. 72.20% of the stock is currently owned by hedge funds and other institutional investors.

Canadian Pacific Kansas City Company Profile

Canadian Pacific Kansas City Limited, together with its subsidiaries, owns and operates a transcontinental freight railway in Canada, the United States, and Mexico. The company transports bulk commodities, including grain, coal, potash, fertilizers, and sulphur; merchandise freight, such as forest products, energy, chemicals and plastics, metals, minerals, consumer products, and automotive; and intermodal traffic comprising retail goods in overseas containers.