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

Key Points

• Canadian Pacific Kansas City has a consensus analyst rating of “Moderate Buy”, with 14 analysts covering the stock and an average 1-year price target of $95.30.
• The company missed first-quarter estimates, reporting EPS of $0.76 versus $0.78 expected and revenue of $2.66 billion versus $2.70 billion expected, while revenue fell 2.5% year over year.
• CPKC also raised its quarterly dividend to $0.268 per share from $0.23, implying an annualized payout of $1.07 and a dividend yield of about 1.2%.

Canadian Pacific Kansas City Limited (NYSE:CP - Get Free Report) TSE: CP has received an average rating of "Moderate Buy" from the fourteen analysts that are currently covering the firm, MarketBeat.com reports. Four equities research analysts have rated the stock with a hold rating, nine have given a buy rating and one has assigned a strong buy rating to the company. The average 1-year price target among brokers that have updated their coverage on the stock in the last year is $95.30.

CP has been the topic of a number of analyst reports. Evercore cut their price objective on shares of Canadian Pacific Kansas City from $87.00 to $85.00 and set an "outperform" rating on the stock in a report on Thursday, January 29th. Royal Bank Of Canada cut their price objective on shares of Canadian Pacific Kansas City from $128.00 to $127.00 and set an "outperform" rating on the stock in a report on Thursday, April 30th. Sanford C. Bernstein lifted their price objective 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. ATB Cormark Capital Markets downgraded shares of Canadian Pacific Kansas City from a "strong-buy" rating to a "moderate buy" rating in a report on Friday, April 17th. Finally, Scotiabank downgraded shares of Canadian Pacific Kansas City from a "strong-buy" rating to a "hold" rating in a report on Thursday, April 9th.

Institutional Investors Weigh In On Canadian Pacific Kansas City

A number of hedge funds have recently made changes to their positions in CP. Norges Bank bought a new stake in shares of Canadian Pacific Kansas City during the 4th quarter worth $978,558,000. Janus Henderson Group PLC raised its stake in shares of Canadian Pacific Kansas City by 586.1% during the 4th quarter. Janus Henderson Group PLC now owns 6,147,835 shares of the transportation company's stock worth $452,781,000 after purchasing an additional 5,251,755 shares during the period. Invesco Ltd. raised its stake in shares of Canadian Pacific Kansas City by 18.3% during the 3rd quarter. Invesco Ltd. now owns 23,128,485 shares of the transportation company's stock worth $1,722,841,000 after purchasing an additional 3,585,030 shares during the period. FIL Ltd raised its stake in shares of Canadian Pacific Kansas City by 20.2% during the 4th quarter. FIL Ltd now owns 16,666,777 shares of the transportation company's stock worth $1,227,045,000 after purchasing an additional 2,804,686 shares during the period. Finally, Bessemer Group Inc. raised its stake in shares of Canadian Pacific Kansas City by 5,826.3% during the 1st quarter. Bessemer Group Inc. now owns 2,545,049 shares of the transportation company's stock worth $199,605,000 after purchasing an additional 2,502,104 shares during the period. 72.20% of the stock is currently owned by institutional investors.

Canadian Pacific Kansas City Price Performance

CP opened at $86.02 on Friday. The company has a debt-to-equity ratio of 0.46, a current ratio of 0.67 and a quick ratio of 0.41. The company has a market capitalization of $76.36 billion, a price-to-earnings ratio of 26.55, a P/E/G ratio of 1.83 and a beta of 1.09. The firm's fifty day moving average price is $82.44 and its two-hundred day moving average price is $77.32. Canadian Pacific Kansas City has a 1 year low of $68.42 and a 1 year high of $89.42.

Canadian Pacific Kansas City (NYSE:CP - Get Free Report) TSE: CP last posted its quarterly earnings data 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 firm had revenue of $2.66 billion for the quarter, compared to analysts' expectations of $2.70 billion. Canadian Pacific Kansas City had a return on equity of 8.86% and a net margin of 27.20%.Canadian Pacific Kansas City's revenue was down 2.5% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.06 earnings per share. As a group, analysts anticipate that Canadian Pacific Kansas City will post 3.75 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. Stockholders of record on Friday, June 26th will be paid a dividend of $0.268 per share. This represents a $1.07 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date is Friday, June 26th. This is a positive change from Canadian Pacific Kansas City's previous quarterly dividend of $0.23. Canadian Pacific Kansas City's dividend payout ratio (DPR) is presently 20.68%.

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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