Canadian Pacific Kansas City (NYSE:CP) Sets New 12-Month High After Analyst Upgrade

Key Points

• Canadian Pacific Kansas City hit a new 52-week high after Susquehanna lifted its price target from $104 to $106 and kept a positive rating on the stock.
• Analyst sentiment remains broadly constructive, with multiple firms recently raising targets; MarketBeat shows a consensus rating of Moderate Buy and an average price target of $104.91.
• The company also announced a higher quarterly dividend of $0.268 per share, up from $0.23, which translates to a 1.2% annualized yield.

Canadian Pacific Kansas City Limited (NYSE:CP - Get Free Report) TSE: CP reached a new 52-week high during trading on Wednesday after Susquehanna raised their price target on the stock from $104.00 to $106.00. Susquehanna currently has a positive rating on the stock. Canadian Pacific Kansas City traded as high as $92.16 and last traded at $91.4730, with a volume of 2358538 shares traded. The stock had previously closed at $91.35.

CP has been the topic of a number of other research reports. Canadian Imperial Bank of Commerce upped their price target 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. ATB Cormark Capital Markets downgraded shares of Canadian Pacific Kansas City from a "strong-buy" rating to a "moderate buy" rating in a research note on Friday, April 17th. Wall Street Zen raised shares of Canadian Pacific Kansas City from a "sell" rating to a "hold" rating in a report on Saturday, May 30th. Citigroup upped their target price on Canadian Pacific Kansas City from $97.00 to $106.00 and gave the company a "buy" rating in a research report on Thursday, July 9th. Finally, Wells Fargo & Company raised their target price on Canadian Pacific Kansas City from $90.00 to $100.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 8th. One equities research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, Canadian Pacific Kansas City currently has an average rating of "Moderate Buy" and a consensus price target of $104.91.

Hedge Funds Weigh In On Canadian Pacific Kansas City

A number of institutional investors have recently bought and sold shares of CP. Prosperity Bancshares Inc acquired a new stake in shares of Canadian Pacific Kansas City in the fourth quarter worth $26,000. Gilpin Wealth Management LLC acquired a new position in Canadian Pacific Kansas City during the fourth quarter valued at $29,000. McMillan Office Inc. purchased a new stake in Canadian Pacific Kansas City in the fourth quarter valued at $31,000. Wealth Watch Advisors INC purchased a new stake in Canadian Pacific Kansas City in the third quarter valued at $36,000. Finally, Acadian Asset Management LLC acquired a new stake in Canadian Pacific Kansas City during the 1st quarter worth about $35,000. 72.20% of the stock is owned by hedge funds and other institutional investors.

Canadian Pacific Kansas City Price Performance

The firm has a 50-day simple moving average of $87.85 and a two-hundred day simple moving average of $82.45. The company has a market capitalization of $80.95 billion, a price-to-earnings ratio of 28.23, a P/E/G ratio of 1.81 and a beta of 1.10. The company has a current ratio of 0.67, a quick ratio of 0.57 and a debt-to-equity ratio of 0.46.

Canadian Pacific Kansas City (NYSE:CP - Get Free Report) TSE: CP last issued its quarterly earnings data on Wednesday, April 29th. The transportation company reported $0.76 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.78 by ($0.02). Canadian Pacific Kansas City had a net margin of 27.20% and a return on equity of 8.86%. The company had revenue of $2.66 billion during the quarter, compared to analyst estimates of $2.70 billion. During the same period last year, the firm earned $1.06 EPS. The business's quarterly revenue was down 2.5% compared to the same quarter last year. As a group, analysts predict that Canadian Pacific Kansas City Limited will post 3.71 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, July 27th. Shareholders of record on Friday, June 26th will be issued a $0.268 dividend. The ex-dividend date of this dividend is Friday, June 26th. This is a boost from Canadian Pacific Kansas City's previous quarterly dividend of $0.23. This represents a $1.07 dividend on an annualized basis and a yield of 1.2%. Canadian Pacific Kansas City's dividend payout ratio is presently 24.07%.

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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