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

Key Points

• Analysts maintain a positive outlook: Fifteen firms give Canadian Pacific Kansas City an average “Moderate Buy” rating, with 11 buys, three holds, and one strong buy. The average 12-month price target is $108.60.
• Quarterly results exceeded expectations: The company reported $0.92 in earnings per share versus the $0.89 consensus estimate, while revenue rose 12.6% year over year to $2.93 billion.
• Shareholders will receive a quarterly dividend: CPKC declared a $0.268-per-share dividend, equivalent to $1.07 annually and a 1.1% yield. Institutional investors own 72.2% of the company’s stock.

Shares of Canadian Pacific Kansas City Limited (NYSE:CP - Get Free Report) TSE: CP have received an average rating of "Moderate Buy" from the fifteen ratings firms that are covering the stock, MarketBeat.com reports. Three equities research analysts have rated the stock with a hold rating, eleven have issued a buy rating and one has issued a strong buy rating on the company. The average 1-year target price among brokers that have issued ratings on the stock in the last year is $108.60.

CP has been the subject of a number of recent analyst reports. Argus set a $105.00 price target on Canadian Pacific Kansas City in a report on Tuesday, June 16th. Canadian Imperial Bank of Commerce increased their price objective on Canadian Pacific Kansas City from C$140.00 to C$143.00 and gave the company an "outperformer" rating in a report on Thursday, June 25th. Scotiabank reissued an "outperform" rating on shares of Canadian Pacific Kansas City in a research report on Thursday, July 16th. Citizens Jmp assumed coverage on Canadian Pacific Kansas City in a research note on Wednesday, July 15th. They set a "market perform" rating for the company. Finally, Evercore set a $99.00 price target on Canadian Pacific Kansas City in a report on Thursday, July 30th.

Canadian Pacific Kansas City Price Performance

Canadian Pacific Kansas City stock opened at $93.53 on Monday. The company has a current ratio of 0.59, a quick ratio of 0.50 and a debt-to-equity ratio of 0.47. The company has a fifty day simple moving average of $89.72 and a 200-day simple moving average of $85.50. The stock has a market cap of $82.16 billion, a P/E ratio of 30.08, a price-to-earnings-growth ratio of 1.83 and a beta of 1.10. Canadian Pacific Kansas City has a 12-month low of $68.42 and a 12-month high of $94.66.

Canadian Pacific Kansas City (NYSE:CP - Get Free Report) TSE: CP last posted its earnings results on Wednesday, July 29th. The transportation company reported $0.92 EPS for the quarter, beating the consensus estimate of $0.89 by $0.03. Canadian Pacific Kansas City had a return on equity of 9.02% and a net margin of 25.02%.The firm had revenue of $2.93 billion for the quarter, compared to analyst estimates of $2.89 billion. During the same quarter in the prior year, the company posted $1.12 earnings per share. Canadian Pacific Kansas City's revenue for the quarter was up 12.6% compared to the same quarter last year. Equities analysts expect that Canadian Pacific Kansas City will post 3.7 EPS for the current fiscal year.

Canadian Pacific Kansas City Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, October 26th. Stockholders of record on Friday, September 25th will be given a dividend of $0.268 per share. This represents a $1.07 annualized dividend and a dividend yield of 1.1%. The ex-dividend date is Friday, September 25th. Canadian Pacific Kansas City's payout ratio is currently 25.08%.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of CP. Port Capital LLC purchased a new position in shares of Canadian Pacific Kansas City in the 2nd quarter valued at $47,906,000. Caisse de depot et placement du Quebec purchased a new stake in Canadian Pacific Kansas City in the second quarter valued at $228,402,000. Man Group plc purchased a new stake in Canadian Pacific Kansas City in the second quarter valued at $214,000. Jupiter Topco LLC acquired a new position in Canadian Pacific Kansas City in the second quarter valued at $576,687,000. Finally, Bristol Gate Capital Partners Inc. acquired a new position in Canadian Pacific Kansas City in the second quarter valued at $595,000. Institutional investors and hedge funds own 72.20% of the company's stock.

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.

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