Alkeon Capital Management LLC Acquires Shares of 1,100,000 Canadian Pacific Kansas City Limited $CP

Key Points

• Alkeon Capital Management LLC has acquired a new stake in Canadian Pacific Kansas City Limited, purchasing 1,100,000 shares valued at approximately $77.23 million.
• The company recently announced an increase in its quarterly dividend to $0.1651 per share, translating to an annualized dividend of $0.66 with a yield of 0.9%.
• Canadian Pacific Kansas City reported a missed EPS estimate of $0.81 for the last quarter and a revenue of $2.72 billion, which was below analysts' expectations.

Alkeon Capital Management LLC acquired a new position in Canadian Pacific Kansas City Limited (NYSE:CP - Free Report) TSE: CP during the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor acquired 1,100,000 shares of the transportation company's stock, valued at approximately $77,231,000. Alkeon Capital Management LLC owned 0.12% of Canadian Pacific Kansas City as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Bank of New York Mellon Corp grew its holdings in Canadian Pacific Kansas City by 3.0% in the first quarter. Bank of New York Mellon Corp now owns 1,065,476 shares of the transportation company's stock worth $74,807,000 after purchasing an additional 31,508 shares during the period. Concurrent Investment Advisors LLC grew its holdings in Canadian Pacific Kansas City by 70.0% in the first quarter. Concurrent Investment Advisors LLC now owns 5,990 shares of the transportation company's stock worth $421,000 after purchasing an additional 2,467 shares during the period. CX Institutional purchased a new stake in Canadian Pacific Kansas City in the first quarter worth about $61,000. Janney Montgomery Scott LLC grew its holdings in Canadian Pacific Kansas City by 28.8% in the first quarter. Janney Montgomery Scott LLC now owns 101,211 shares of the transportation company's stock worth $7,106,000 after purchasing an additional 22,606 shares during the period. Finally, Assenagon Asset Management S.A. grew its holdings in Canadian Pacific Kansas City by 1.0% in the first quarter. Assenagon Asset Management S.A. now owns 28,676 shares of the transportation company's stock worth $2,012,000 after purchasing an additional 290 shares during the period. Hedge funds and other institutional investors own 72.20% of the company's stock.

Canadian Pacific Kansas City Stock Performance

Canadian Pacific Kansas City stock traded up $0.07 during midday trading on Thursday, reaching $76.75. 2,977,441 shares of the company traded hands, compared to its average volume of 2,784,225. The firm has a market capitalization of $70.12 billion, a price-to-earnings ratio of 23.91, a price-to-earnings-growth ratio of 2.15 and a beta of 1.06. The business has a 50 day moving average of $77.10 and a two-hundred day moving average of $76.51. Canadian Pacific Kansas City Limited has a 12 month low of $66.49 and a 12 month high of $87.72. The company has a debt-to-equity ratio of 0.45, a current ratio of 0.93 and a quick ratio of 0.81.

Canadian Pacific Kansas City (NYSE:CP - Get Free Report) TSE: CP last issued its quarterly earnings data 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). Canadian Pacific Kansas City had a net margin of 28.05% and a return on equity of 8.69%. The company had revenue of $2.72 billion for the quarter, compared to the consensus estimate of $2.76 billion. During the same quarter last year, the company earned $1.05 EPS. The firm's revenue for the quarter was up 2.7% on a year-over-year basis. As a group, research analysts predict that Canadian Pacific Kansas City Limited will post 3.42 earnings per share for the current year.

Canadian Pacific Kansas City Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, October 27th. Stockholders of record on Friday, September 26th will be paid a $0.1651 dividend. This represents a $0.66 dividend on an annualized basis and a dividend yield of 0.9%. This is a boost from Canadian Pacific Kansas City's previous quarterly dividend of $0.16. The ex-dividend date of this dividend is Friday, September 26th. Canadian Pacific Kansas City's dividend payout ratio is currently 20.56%.

Wall Street Analyst Weigh In

CP has been the topic of a number of recent analyst reports. Bank of America increased their price target on shares of Canadian Pacific Kansas City from $82.00 to $90.00 and gave the company a "buy" rating in a report on Friday, May 16th. National Bank Financial upgraded shares of Canadian Pacific Kansas City from a "hold" rating to a "strong-buy" rating in a report on Wednesday, July 30th. Stephens increased their price target on shares of Canadian Pacific Kansas City from $95.00 to $97.00 and gave the company an "overweight" rating in a report on Thursday, July 31st. The Goldman Sachs Group reiterated a "neutral" rating and set a $91.00 price target on shares of Canadian Pacific Kansas City in a report on Monday, June 2nd. Finally, Citigroup increased their price target on shares of Canadian Pacific Kansas City from $89.00 to $94.00 and gave the company a "buy" rating in a report on Wednesday, July 9th. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $92.30.

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.