Canadian National Railway's (CNI) "Hold" Rating Reaffirmed at Argus

Key Points

• Argus reaffirmed its “hold” rating on Canadian National Railway, while the broader analyst consensus remains “Moderate Buy” with nine Buy and nine Hold ratings and an average target price of $137.40.
• Canadian National Railway reported quarterly EPS of $1.50, exceeding estimates of $1.39, while revenue rose 11.3% year over year to $3.35 billion and also topped expectations.
• Institutional ownership remains substantial at 80.74%, with several major investors—including Lazard, Norges Bank, FIL and AQR—recently increasing their positions.

Canadian National Railway (NYSE:CNI - Get Free Report) TSE: CNR's stock had its "hold" rating reaffirmed by stock analysts at Argus in a note issued to investors on Monday,Benzinga reports.

A number of other research analysts also recently weighed in on CNI. National Bank Financial set a $124.00 target price on shares of Canadian National Railway in a research report on Thursday, June 25th. Canadian Imperial Bank of Commerce increased their price objective on Canadian National Railway from C$182.00 to C$185.00 and gave the company an "outperformer" rating in a report on Thursday, June 25th. Royal Bank Of Canada raised their target price on Canadian National Railway from $195.00 to $205.00 and gave the stock an "outperform" rating in a research report on Monday, July 27th. Evercore upgraded Canadian National Railway from an "in-line" rating to an "outperform" rating and set a $124.00 target price on the stock in a research note on Thursday, June 25th. Finally, Benchmark reaffirmed a "hold" rating on shares of Canadian National Railway in a research report on Monday, July 27th. Nine investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $137.40.

Canadian National Railway Stock Down 0.1%

Shares of NYSE:CNI opened at $125.89 on Monday. Canadian National Railway has a 1 year low of $90.74 and a 1 year high of $131.55. The company has a market capitalization of $76.18 billion, a PE ratio of 22.32, a price-to-earnings-growth ratio of 2.35 and a beta of 0.95. The business has a fifty day moving average price of $125.18 and a two-hundred day moving average price of $115.68. The company has a debt-to-equity ratio of 0.99, a current ratio of 0.87 and a quick ratio of 0.61.

Canadian National Railway (NYSE:CNI - Get Free Report) TSE: CNR last released its earnings results on Friday, July 24th. The transportation company reported $1.50 EPS for the quarter, topping analysts' consensus estimates of $1.39 by $0.11. Canadian National Railway had a return on equity of 22.22% and a net margin of 26.92%.The company had revenue of $3.35 billion for the quarter, compared to analysts' expectations of $3.26 billion. During the same period in the previous year, the business posted $1.87 EPS. The business's revenue for the quarter was up 11.3% compared to the same quarter last year. Analysts forecast that Canadian National Railway will post 5.81 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. Lazard Asset Management LLC grew its position in Canadian National Railway by 639,137.0% during the third quarter. Lazard Asset Management LLC now owns 8,955,711 shares of the transportation company's stock worth $844,353,000 after buying an additional 8,954,310 shares in the last quarter. Norges Bank bought a new position in shares of Canadian National Railway in the fourth quarter worth approximately $570,161,000. FIL Ltd raised its stake in Canadian National Railway by 49.5% in the fourth quarter. FIL Ltd now owns 15,745,744 shares of the transportation company's stock valued at $1,557,309,000 after purchasing an additional 5,210,403 shares in the last quarter. AQR Capital Management LLC lifted its position in Canadian National Railway by 6,329.2% during the fourth quarter. AQR Capital Management LLC now owns 1,234,030 shares of the transportation company's stock valued at $122,050,000 after purchasing an additional 1,214,836 shares during the last quarter. Finally, Deutsche Bank AG grew its stake in Canadian National Railway by 15.1% in the 4th quarter. Deutsche Bank AG now owns 8,998,101 shares of the transportation company's stock worth $889,462,000 after buying an additional 1,182,106 shares in the last quarter. 80.74% of the stock is currently owned by hedge funds and other institutional investors.

Canadian National Railway Company Profile

Canadian National Railway Company NYSE: CNI is a Class I freight railway that operates an integrated rail network across Canada and the United States. Headquartered in Montreal, Quebec, CN provides long-haul freight transportation and related logistics services that connect major ports, industrial centers and inland markets throughout North America. Its transcontinental system enables cross-border movement of goods and supports supply chains that span coast-to-coast in Canada and into the central and eastern United States.

CN's core business is the railborne transportation of a broad mix of commodities, including intermodal container traffic, forest and paper products, grain and other agricultural products, metallurgical and industrial products, petroleum and chemical products, coal and automotive shipments.

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