Bank of America Corp DE Lowers Holdings in Canadian Pacific Kansas City Limited $CP

Key Points

• Bank of America reduced its Canadian Pacific Kansas City stake by 12.8% in the first quarter, selling 429,078 shares and retaining 2.93 million shares worth approximately $230.5 million. Institutional investors collectively own 72.2% of the company.
• Analysts remain broadly positive, with one Strong Buy, 11 Buy and three Hold ratings. The stock has a consensus rating of “Moderate Buy” and an average price target of $108.60.
• Canadian Pacific Kansas City exceeded quarterly earnings and revenue expectations, reporting EPS of $0.92 and revenue of $2.93 billion, while revenue increased 12.6% year over year. The company also announced a quarterly dividend of $0.268 per share, yielding about 1.2% annually.

Bank of America Corp DE trimmed its stake in shares of Canadian Pacific Kansas City Limited (NYSE:CP - Free Report) TSE: CP by 12.8% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 2,929,993 shares of the transportation company's stock after selling 429,078 shares during the period. Bank of America Corp DE owned about 0.33% of Canadian Pacific Kansas City worth $230,473,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors also recently bought and sold shares of the company. Prosperity Bancshares Inc purchased a new stake in Canadian Pacific Kansas City in the 4th quarter worth approximately $26,000. Gilpin Wealth Management LLC purchased a new position in shares of Canadian Pacific Kansas City during the 4th quarter valued at approximately $29,000. McMillan Office Inc. acquired a new position in shares of Canadian Pacific Kansas City in the 4th quarter valued at $31,000. Wealth Watch Advisors INC acquired a new position in shares of Canadian Pacific Kansas City in the 3rd quarter valued at $36,000. Finally, Acadian Asset Management LLC purchased a new stake in Canadian Pacific Kansas City during the first quarter worth $35,000. 72.20% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several research firms recently commented on CP. Citizens Jmp initiated coverage on shares of Canadian Pacific Kansas City in a research report on Wednesday, July 15th. They set a "market perform" rating on the stock. Canadian Imperial Bank of Commerce upped their price objective on shares of Canadian Pacific Kansas City from C$140.00 to C$143.00 and gave the stock an "outperformer" rating in a research report on Thursday, June 25th. Scotiabank restated an "outperform" rating on shares of Canadian Pacific Kansas City in a research report on Thursday, July 16th. Citigroup raised their target price on Canadian Pacific Kansas City from $106.00 to $109.00 and gave the company a "buy" rating in a research report on Thursday, July 30th. Finally, Barclays set a $102.00 price target on Canadian Pacific Kansas City and gave the company an "overweight" rating in a research note on Thursday, June 25th. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $108.60.

Canadian Pacific Kansas City Price Performance

Shares of Canadian Pacific Kansas City stock opened at $90.73 on Tuesday. The business has a 50 day simple moving average of $89.34 and a two-hundred day simple moving average of $84.25. Canadian Pacific Kansas City Limited has a 12 month low of $68.42 and a 12 month high of $93.95. The stock has a market capitalization of $80.00 billion, a P/E ratio of 29.17, a PEG ratio of 1.74 and a beta of 1.10. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.59 and a quick ratio of 0.50.

Canadian Pacific Kansas City (NYSE:CP - Get Free Report) TSE: CP last posted its quarterly earnings data on Wednesday, July 29th. The transportation company reported $0.92 EPS for the quarter, beating the consensus estimate of $0.89 by $0.03. Canadian Pacific Kansas City had a return on equity of 9.02% and a net margin of 25.02%.The firm had revenue of $2.93 billion during the quarter, compared to the consensus estimate of $2.89 billion. During the same period in the prior year, the company earned $1.12 EPS. The firm's revenue was up 12.6% compared to the same quarter last year. As a group, analysts predict that Canadian Pacific Kansas City Limited will post 3.69 EPS for the current fiscal year.

Canadian Pacific Kansas City Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, October 26th. Investors of record on Friday, September 25th will be paid a dividend of $0.268 per share. This represents a $1.07 annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend is Friday, September 25th. Canadian Pacific Kansas City's dividend payout ratio is currently 25.08%.

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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