ARGA Investment Management LP Makes New $2 Million Investment in Canadian National Railway Company $CNI

Key Points

• ARGA Investment Management bought a new position of 20,243 shares in Canadian National Railway (CNI) during Q4, valued at approximately $2.00 million.
• Dividend increased: CN raised its quarterly payout to $0.915 ($3.66 annual), yielding about 3.2% with a dividend payout ratio near 49.4%.
• Recent quarter: CN beat EPS estimates ($1.49 vs. $1.43) but missed revenue expectations ($3.24B vs. $4.43B); the stock carries a consensus "Hold" rating with a $119.14 target and a market cap of roughly $70 billion.

ARGA Investment Management LP purchased a new position in Canadian National Railway Company (NYSE:CNI - Free Report) TSE: CNR during the 4th quarter, according to its most recent filing with the Securities & Exchange Commission. The fund purchased 20,243 shares of the transportation company's stock, valued at approximately $2,002,000.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Cardinal Point Capital Management ULC raised its position in Canadian National Railway by 28.8% in the third quarter. Cardinal Point Capital Management ULC now owns 124,426 shares of the transportation company's stock worth $11,730,000 after acquiring an additional 27,857 shares in the last quarter. Lincluden Management Ltd. increased its holdings in shares of Canadian National Railway by 4.1% in the third quarter. Lincluden Management Ltd. now owns 434,344 shares of the transportation company's stock valued at $40,717,000 after buying an additional 17,257 shares in the last quarter. Kensington Investment Counsel LLC bought a new position in shares of Canadian National Railway in the third quarter valued at $3,079,000. Lorne Steinberg Wealth Management Inc. increased its holdings in shares of Canadian National Railway by 23.3% in the third quarter. Lorne Steinberg Wealth Management Inc. now owns 83,095 shares of the transportation company's stock valued at $7,834,000 after buying an additional 15,715 shares in the last quarter. Finally, Nicola Wealth Management LTD. increased its holdings in shares of Canadian National Railway by 13.9% in the third quarter. Nicola Wealth Management LTD. now owns 198,800 shares of the transportation company's stock valued at $18,749,000 after buying an additional 24,200 shares in the last quarter. 80.74% of the stock is currently owned by institutional investors.

Canadian National Railway Price Performance

Shares of CNI opened at $114.96 on Tuesday. The company has a market capitalization of $69.98 billion, a price-to-earnings ratio of 21.17, a P/E/G ratio of 2.16 and a beta of 0.91. Canadian National Railway Company has a fifty-two week low of $90.74 and a fifty-two week high of $115.80. The company has a debt-to-equity ratio of 0.94, a current ratio of 0.67 and a quick ratio of 0.47. The business's 50-day moving average is $107.28 and its 200-day moving average is $101.05.

Canadian National Railway (NYSE:CNI - Get Free Report) TSE: CNR last issued its earnings results on Friday, January 30th. The transportation company reported $1.49 earnings per share for the quarter, beating analysts' consensus estimates of $1.43 by $0.06. The company had revenue of $3.24 billion for the quarter, compared to the consensus estimate of $4.43 billion. Canadian National Railway had a return on equity of 22.14% and a net margin of 27.28%.The firm's quarterly revenue was up 2.4% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.82 EPS. Equities research analysts expect that Canadian National Railway Company will post 5.74 EPS for the current fiscal year.

Canadian National Railway Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Tuesday, March 10th were paid a $0.915 dividend. This represents a $3.66 dividend on an annualized basis and a dividend yield of 3.2%. This is a boost from Canadian National Railway's previous quarterly dividend of $0.89. The ex-dividend date of this dividend was Tuesday, March 10th. Canadian National Railway's dividend payout ratio (DPR) is currently 49.36%.

Analyst Upgrades and Downgrades

CNI has been the topic of several research reports. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Canadian National Railway in a report on Monday, April 20th. Bank of America raised Canadian National Railway from a "neutral" rating to a "buy" rating and upped their price target for the company from $117.00 to $122.00 in a report on Thursday, April 9th. UBS Group cut Canadian National Railway from a "strong-buy" rating to a "hold" rating in a report on Monday, February 2nd. Vertical Research upgraded Canadian National Railway from a "hold" rating to a "buy" rating in a report on Monday, January 5th. Finally, Stephens cut their price objective on Canadian National Railway from $105.00 to $100.00 and set an "equal weight" rating on the stock in a report on Monday, February 2nd. Nine investment analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the stock. According to MarketBeat.com, Canadian National Railway presently has a consensus rating of "Hold" and a consensus target price of $119.14.

Canadian National Railway Company Profile

Canadian National Railway Company NYSE: CNI is a Class I freight railway that operates an integrated rail network across Canada and the United States. Headquartered in Montreal, Quebec, CN provides long-haul freight transportation and related logistics services that connect major ports, industrial centers and inland markets throughout North America. Its transcontinental system enables cross-border movement of goods and supports supply chains that span coast-to-coast in Canada and into the central and eastern United States.

CN's core business is the railborne transportation of a broad mix of commodities, including intermodal container traffic, forest and paper products, grain and other agricultural products, metallurgical and industrial products, petroleum and chemical products, coal and automotive shipments.

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