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

Key Points

• Canadian Pacific Kansas City Limited has received a consensus rating of "Moderate Buy" from analysts, with one sell, four hold, eleven buy, and one strong buy recommendations.
• The company's stock price target was raised by Citigroup to $94.00, with other analysts also increasing their targets, indicating positive sentiment towards the stock.
• Canadian Pacific Kansas City recently announced a quarterly dividend increase to $0.1651 per share, reflecting a boost from the previous dividend rate and a payout ratio of 20.56%.

Canadian Pacific Kansas City Limited (NYSE:CP - Get Free Report) TSE: CP has been assigned an average rating of "Moderate Buy" from the seventeen research firms that are covering the company, Marketbeat reports. One analyst has rated the stock with a sell recommendation, four have assigned a hold recommendation, eleven have given a buy recommendation and one has given a strong buy recommendation to the company. The average twelve-month target price among brokerages that have updated their coverage on the stock in the last year is $92.3036.

A number of equities analysts have weighed in on CP shares. The Goldman Sachs Group reiterated a "neutral" rating and set a $91.00 target price on shares of Canadian Pacific Kansas City in a research report on Monday, June 2nd. Susquehanna reiterated a "positive" rating and set a $94.00 target price (up previously from $90.00) on shares of Canadian Pacific Kansas City in a research report on Tuesday, June 24th. Barclays increased their target price on shares of Canadian Pacific Kansas City from $87.00 to $91.00 and gave the stock an "overweight" rating in a research report on Thursday, July 10th. Citigroup increased their target price on shares of Canadian Pacific Kansas City from $89.00 to $94.00 and gave the stock a "buy" rating in a research report on Wednesday, July 9th. Finally, Wall Street Zen upgraded shares of Canadian Pacific Kansas City from a "sell" rating to a "hold" rating in a research report on Saturday, August 23rd.

Institutional Investors Weigh In On Canadian Pacific Kansas City

Several hedge funds and other institutional investors have recently modified their holdings of CP. Norges Bank bought a new stake in shares of Canadian Pacific Kansas City during the second quarter valued at about $1,012,065,000. JPMorgan Chase & Co. increased its position in shares of Canadian Pacific Kansas City by 87.2% during the second quarter. JPMorgan Chase & Co. now owns 16,000,064 shares of the transportation company's stock valued at $1,268,325,000 after buying an additional 7,454,810 shares during the period. Invesco Ltd. increased its position in shares of Canadian Pacific Kansas City by 59.5% during the first quarter. Invesco Ltd. now owns 16,984,351 shares of the transportation company's stock valued at $1,192,471,000 after buying an additional 6,337,312 shares during the period. Fisher Asset Management LLC increased its position in shares of Canadian Pacific Kansas City by 281.0% during the second quarter. Fisher Asset Management LLC now owns 5,431,316 shares of the transportation company's stock valued at $430,540,000 after buying an additional 4,005,942 shares during the period. Finally, Goldman Sachs Group Inc. increased its position in shares of Canadian Pacific Kansas City by 70.4% during the first quarter. Goldman Sachs Group Inc. now owns 9,299,753 shares of the transportation company's stock valued at $652,936,000 after buying an additional 3,842,866 shares during the period. 72.20% of the stock is currently owned by institutional investors.

Canadian Pacific Kansas City Stock Performance

CP stock traded down $0.61 during mid-day trading on Monday, hitting $76.07. The company had a trading volume of 1,184,265 shares, compared to its average volume of 3,204,212. The firm has a market cap of $69.50 billion, a PE ratio of 23.74, a price-to-earnings-growth ratio of 2.13 and a beta of 1.06. The company has a debt-to-equity ratio of 0.45, a quick ratio of 0.81 and a current ratio of 0.93. Canadian Pacific Kansas City has a 12 month low of $66.49 and a 12 month high of $87.72. The stock's fifty day moving average price is $77.15 and its two-hundred day moving average price is $76.51.

Canadian Pacific Kansas City (NYSE:CP - Get Free Report) TSE: CP last issued its earnings results on Wednesday, July 30th. The transportation company reported $0.81 earnings per share for the quarter, missing analysts' consensus estimates of $0.82 by ($0.01). The business had revenue of $2.72 billion for the quarter, compared to the consensus estimate of $2.76 billion. Canadian Pacific Kansas City had a return on equity of 8.69% and a net margin of 28.05%.Canadian Pacific Kansas City's revenue for the quarter was up 2.7% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.05 EPS. On average, analysts forecast that Canadian Pacific Kansas City will post 3.42 earnings per share for the current fiscal year.

Canadian Pacific Kansas City Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, October 27th. Stockholders of record on Friday, September 26th will be given a dividend of $0.1651 per share. This is a boost from Canadian Pacific Kansas City's previous quarterly dividend of $0.16. This represents a $0.66 annualized dividend and a dividend yield of 0.9%. The ex-dividend date is Friday, September 26th. Canadian Pacific Kansas City's dividend payout ratio (DPR) is currently 20.25%.

About Canadian Pacific Kansas City

Canadian Pacific Kansas City Limited, together with its subsidiaries, owns and operates a transcontinental freight railway in Canada, the United States, and Mexico. The company transports bulk commodities, including grain, coal, potash, fertilizers, and sulphur; merchandise freight, such as forest products, energy, chemicals and plastics, metals, minerals, consumer products, and automotive; and intermodal traffic comprising retail goods in overseas containers.