Canadian Pacific Kansas City (NYSE:CP) Reaches New 12-Month High – Should You Buy?

Canadian Pacific Kansas City Limited (NYSE:CP) (TSE:CP)’s stock price hit a new 52-week high on Monday . The company traded as high as $91.52 and last traded at $89.4260, with a volume of 135598 shares traded. The stock had previously closed at $90.08.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on the stock. Royal Bank Of Canada reduced their price target on shares of Canadian Pacific Kansas City from $128.00 to $127.00 and set an “outperform” rating for the company in a research report on Thursday, April 30th. Barclays set a $99.00 target price on shares of Canadian Pacific Kansas City and gave the stock an “overweight” rating in a report on Thursday, April 30th. Wall Street Zen raised shares of Canadian Pacific Kansas City from a “sell” rating to a “hold” rating in a report on Saturday, May 30th. Sanford C. Bernstein increased their target price on shares of Canadian Pacific Kansas City from $85.41 to $90.00 and gave the stock a “market perform” rating in a report on Tuesday, March 31st. Finally, National Bank Financial raised shares of Canadian Pacific Kansas City from a “hold” rating to a “strong-buy” rating in a report on Wednesday, April 15th. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $103.22.

Canadian Pacific Kansas City Stock Performance

The company has a market capitalization of $79.18 billion, a P/E ratio of 27.55, a P/E/G ratio of 1.93 and a beta of 1.09. The business has a 50-day moving average of $85.52 and a 200-day moving average of $80.26. The company has a debt-to-equity ratio of 0.46, a current ratio of 0.67 and a quick ratio of 0.57.

Canadian Pacific Kansas City (NYSE:CP) (TSE:CP) last issued its quarterly earnings results on Wednesday, April 29th. The transportation company reported $0.76 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.78 by ($0.02). The company had revenue of $2.66 billion during the quarter, compared to the consensus estimate of $2.70 billion. Canadian Pacific Kansas City had a return on equity of 8.86% and a net margin of 27.20%.The firm’s quarterly revenue was down 2.5% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.06 earnings per share. On average, sell-side analysts anticipate that Canadian Pacific Kansas City Limited will post 3.76 EPS for the current year.

Canadian Pacific Kansas City Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, July 27th. Investors of record on Friday, June 26th will be paid a $0.268 dividend. This represents a $1.07 dividend on an annualized basis and a yield of 1.2%. This is a boost from Canadian Pacific Kansas City’s previous quarterly dividend of $0.23. The ex-dividend date of this dividend is Friday, June 26th. Canadian Pacific Kansas City’s payout ratio is currently 20.68%.

Institutional Trading of Canadian Pacific Kansas City

A number of hedge funds have recently added to or reduced their stakes in CP. Intech Investment Management LLC lifted its stake in Canadian Pacific Kansas City by 16.0% in the first quarter. Intech Investment Management LLC now owns 21,276 shares of the transportation company’s stock worth $1,493,000 after acquiring an additional 2,940 shares during the period. Acadian Asset Management LLC acquired a new position in shares of Canadian Pacific Kansas City during the first quarter valued at about $35,000. Sivia Capital Partners LLC acquired a new position in shares of Canadian Pacific Kansas City during the second quarter valued at about $206,000. Prudential Financial Inc. increased its holdings in shares of Canadian Pacific Kansas City by 8.7% during the second quarter. Prudential Financial Inc. now owns 5,183 shares of the transportation company’s stock valued at $411,000 after acquiring an additional 415 shares in the last quarter. Finally, EverSource Wealth Advisors LLC increased its holdings in shares of Canadian Pacific Kansas City by 39.3% during the second quarter. EverSource Wealth Advisors LLC now owns 1,307 shares of the transportation company’s stock valued at $104,000 after acquiring an additional 369 shares in the last quarter. 72.20% of the stock is owned by hedge funds and other institutional investors.

Canadian Pacific Kansas City Company Profile

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.