Canadian Pacific Kansas City Limited (NYSE:CP) Given Average Recommendation of "Moderate Buy" by Analysts

Key Points

• Analyst sentiment is positive overall: Canadian Pacific Kansas City has an average rating of “Moderate Buy” from 15 analysts, with 11 buy ratings and 1 strong buy. The average 12-month price target is about $104.91.
• Recent earnings were slightly below expectations: The company reported $0.76 EPS versus the $0.78 consensus, and revenue came in at $2.66 billion versus $2.70 billion expected. Revenue also declined 2.5% year over year.
• CPKC raised its dividend: The quarterly dividend was increased to $0.268 per share from $0.23, equal to an annualized yield of about 1.2%. The payout ratio is 24.07%.

Shares of Canadian Pacific Kansas City Limited (NYSE:CP - Get Free Report) TSE: CP have been given an average recommendation of "Moderate Buy" by the fifteen ratings firms that are covering the firm, Marketbeat Ratings reports. Three equities research analysts have rated the stock with a hold recommendation, eleven have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1 year price objective among brokerages that have updated their coverage on the stock in the last year is $104.9091.

A number of equities analysts recently weighed in on the company. Scotiabank reissued an "outperform" rating on shares of Canadian Pacific Kansas City in a report on Thursday, July 16th. Wall Street Zen cut shares of Canadian Pacific Kansas City from a "hold" rating to a "sell" rating in a research report on Saturday, July 18th. Stephens raised shares of Canadian Pacific Kansas City to a "hold" rating in a research note on Wednesday, July 8th. National Bank Financial upgraded shares of Canadian Pacific Kansas City from a "hold" rating to a "strong-buy" rating in a report on Wednesday, April 15th. Finally, Canadian Imperial Bank of Commerce boosted their price objective on shares of Canadian Pacific Kansas City from C$140.00 to C$143.00 and gave the stock an "outperformer" rating in a report on Thursday, June 25th.

Canadian Pacific Kansas City Stock Up 0.0%

CP opened at $91.20 on Thursday. The business's fifty day simple moving average is $88.60 and its 200 day simple moving average is $83.20. Canadian Pacific Kansas City has a 52 week low of $68.42 and a 52 week high of $93.95. The company has a quick ratio of 0.57, a current ratio of 0.67 and a debt-to-equity ratio of 0.46. The stock has a market cap of $80.71 billion, a PE ratio of 28.15, a P/E/G ratio of 1.82 and a beta of 1.10.

Canadian Pacific Kansas City (NYSE:CP - Get Free Report) 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 the consensus estimate of $0.78 by ($0.02). Canadian Pacific Kansas City had a return on equity of 8.86% and a net margin of 27.20%.The firm had revenue of $2.66 billion for the quarter, compared to the consensus estimate of $2.70 billion. During the same period last year, the firm earned $1.06 EPS. The company's revenue for the quarter was down 2.5% on a year-over-year basis. As a group, research analysts expect that Canadian Pacific Kansas City will post 3.69 earnings per share for the current fiscal year.

Canadian Pacific Kansas City Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, July 27th. Investors of record on Friday, June 26th will be given a $0.268 dividend. This represents a $1.07 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date is Friday, June 26th. This is a boost from Canadian Pacific Kansas City's previous quarterly dividend of $0.23. Canadian Pacific Kansas City's dividend payout ratio is 24.07%.

Institutional Trading of Canadian Pacific Kansas City

Several institutional investors have recently added to or reduced their stakes in CP. Prosperity Bancshares Inc purchased a new position in shares of Canadian Pacific Kansas City in the fourth quarter worth about $26,000. Gilpin Wealth Management LLC bought a new stake in shares of Canadian Pacific Kansas City in the 4th quarter valued at about $29,000. McMillan Office Inc. purchased a new stake in Canadian Pacific Kansas City during the 4th quarter valued at about $31,000. Wealth Watch Advisors INC purchased a new stake in Canadian Pacific Kansas City during the 3rd quarter valued at about $36,000. Finally, Acadian Asset Management LLC bought a new position in Canadian Pacific Kansas City during the 1st quarter worth approximately $35,000. 72.20% of the stock is currently owned by hedge funds and other institutional investors.

About Canadian Pacific Kansas City

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.

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