Canadian Pacific Kansas City (NYSE:CP) Reaches New 52-Week High - Should You Buy?

Key Points

• Canadian Pacific Kansas City reached a new 52-week high, trading as high as $93.95. Analysts maintain a consensus “Moderate Buy” rating, with an average price target of $108.60.
• The company exceeded quarterly expectations, reporting $0.92 in earnings per share versus the $0.89 consensus estimate and $2.93 billion in revenue, up 12.6% year over year.
• CPKC announced a quarterly dividend of $0.268 per share, equivalent to $1.07 annually and a 1.1% yield. Institutional investors own approximately 72.2% of the company’s stock.

Canadian Pacific Kansas City Limited (NYSE:CP - Get Free Report) TSE: CP's share price reached a new 52-week high during trading on Thursday . The stock traded as high as $93.95 and last traded at $93.7150, with a volume of 270630 shares traded. The stock had previously closed at $92.69.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on the stock. ATB Cormark Capital Markets cut shares of Canadian Pacific Kansas City from a "strong-buy" rating to a "moderate buy" rating in a research note on Friday, April 17th. Wells Fargo & Company upped their price target on shares of Canadian Pacific Kansas City from $90.00 to $100.00 and gave the company an "overweight" rating in a report 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 research report on Wednesday, April 15th. Argus set a $105.00 price objective on shares of Canadian Pacific Kansas City in a research note on Tuesday, June 16th. Finally, Barclays set a $102.00 price objective on Canadian Pacific Kansas City and gave the stock an "overweight" rating in a research report on Thursday, June 25th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $108.60.

Canadian Pacific Kansas City Stock Performance

The company has a market capitalization of $82.34 billion, a PE ratio of 30.14, a price-to-earnings-growth ratio of 1.80 and a beta of 1.10. The stock's fifty day simple moving average is $89.56 and its 200-day simple moving average is $85.21. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.50 and a current ratio of 0.59.

Canadian Pacific Kansas City (NYSE:CP - Get Free Report) TSE: CP last issued its quarterly earnings results on Wednesday, July 29th. The transportation company reported $0.92 EPS for the quarter, topping analysts' consensus estimates of $0.89 by $0.03. The business had revenue of $2.93 billion during the quarter, compared to the consensus estimate 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 quarterly revenue was up 12.6% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.12 earnings per share. 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 paid 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 payout ratio is presently 25.08%.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Prosperity Bancshares Inc purchased a new position in Canadian Pacific Kansas City during the fourth quarter worth about $26,000. Gilpin Wealth Management LLC purchased a new stake in Canadian Pacific Kansas City in the 4th quarter valued at about $29,000. McMillan Office Inc. acquired a new position in shares of Canadian Pacific Kansas City during the 4th quarter valued at about $31,000. Acadian Asset Management LLC acquired a new position in shares of Canadian Pacific Kansas City during the 1st quarter valued at about $35,000. Finally, Wealth Watch Advisors INC purchased a new position in shares of Canadian Pacific Kansas City during the 3rd quarter worth about $36,000. Hedge funds and other institutional investors 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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