Canadian Pacific Kansas City (NYSE:CP) Hits New 12-Month High - Should You Buy?

Key Points

• Canadian Pacific Kansas City reached a new 52-week high of $95.13, with the stock last trading near $95.21 and above its 50- and 200-day moving averages.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $108.60; Susquehanna recently raised its target to $106.
• The company beat quarterly earnings and revenue estimates, reporting $0.92 in EPS and $2.93 billion in revenue, while announcing a quarterly dividend of $0.268, yielding approximately 1.1% annually.

Canadian Pacific Kansas City Limited (NYSE:CP - Get Free Report) TSE: CP hit a new 52-week high during trading on Wednesday . The stock traded as high as $95.13 and last traded at $95.2110, with a volume of 187136 shares trading hands. The stock had previously closed at $93.68.

Analysts Set New Price Targets

CP has been the subject of several recent analyst reports. Wall Street Zen upgraded shares of Canadian Pacific Kansas City from a "sell" rating to a "hold" rating in a report on Sunday, July 26th. Stephens upgraded shares of Canadian Pacific Kansas City to a "hold" rating in a research report on Wednesday, July 8th. Scotiabank reaffirmed an "outperform" rating on shares of Canadian Pacific Kansas City in a research note on Thursday, July 16th. Susquehanna lifted their price objective on shares of Canadian Pacific Kansas City from $104.00 to $106.00 and gave the stock a "positive" rating in a research report on Tuesday, July 14th. Finally, Canadian Imperial Bank of Commerce boosted their target price on shares of Canadian Pacific Kansas City from C$140.00 to C$143.00 and gave the company an "outperformer" rating in a research note on Thursday, June 25th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $108.60.

Canadian Pacific Kansas City Price Performance

The stock's 50-day moving average is $89.86 and its 200 day moving average is $85.81. The stock has a market capitalization of $83.74 billion, a PE ratio of 30.57, a P/E/G ratio of 1.83 and a beta of 1.10. The company has a quick ratio of 0.50, a current ratio of 0.59 and a debt-to-equity ratio of 0.47.

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

Canadian Pacific Kansas City Dividend Announcement

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

Institutional Trading of Canadian Pacific Kansas City

A number of institutional investors have recently added to or reduced their stakes in the business. Fiduciary Financial Advisors bought a new stake in shares of Canadian Pacific Kansas City during the 2nd quarter worth about $25,000. Prosperity Bancshares Inc bought a new position in shares of Canadian Pacific Kansas City in the 4th quarter valued at approximately $26,000. Gilpin Wealth Management LLC acquired a new stake in Canadian Pacific Kansas City in the 4th quarter worth approximately $29,000. McMillan Office Inc. acquired a new stake in Canadian Pacific Kansas City in the 4th quarter worth approximately $31,000. Finally, Acadian Asset Management LLC bought a new stake in Canadian Pacific Kansas City during the first quarter worth approximately $35,000. 72.20% of the stock is currently owned by institutional investors and hedge funds.

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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