Bank of America Corp DE Makes New $276.90 Million Investment in Canadian Pacific Kansas City Limited $CP

Key Points

• Bank of America acquired 3.20 million shares of Canadian Pacific Kansas City in the second quarter, valued at approximately $276.9 million and representing about 0.36% of the company.
• Several other institutional investors also initiated positions, bringing institutional ownership of Canadian Pacific Kansas City to 72.2%.
• Canadian Pacific Kansas City exceeded quarterly earnings and revenue estimates, while analysts maintain a “Moderate Buy” consensus with an average price target of $108.60; the company also declared a quarterly dividend of $0.268 per share.

Bank of America Corp DE acquired a new position in Canadian Pacific Kansas City Limited (NYSE:CP - Free Report) TSE: CP during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 3,195,613 shares of the transportation company's stock, valued at approximately $276,900,000. Bank of America Corp DE owned about 0.36% of Canadian Pacific Kansas City as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors also recently bought and sold shares of CP. Port Capital LLC acquired a new stake in shares of Canadian Pacific Kansas City in the second quarter valued at about $47,906,000. Caisse de depot et placement du Quebec bought a new stake in Canadian Pacific Kansas City during the 2nd quarter valued at approximately $228,402,000. Man Group plc bought a new stake in Canadian Pacific Kansas City during the 2nd quarter valued at approximately $214,000. Jupiter Topco LLC acquired a new stake in Canadian Pacific Kansas City in the 2nd quarter valued at approximately $576,687,000. Finally, Bristol Gate Capital Partners Inc. acquired a new stake in Canadian Pacific Kansas City in the 2nd quarter valued at approximately $595,000. 72.20% of the stock is currently owned by institutional investors.

Canadian Pacific Kansas City Price Performance

Shares of Canadian Pacific Kansas City stock opened at $87.78 on Thursday. The firm has a market cap of $77.10 billion, a P/E ratio of 28.22, a price-to-earnings-growth ratio of 1.85 and a beta of 1.12. The firm's 50-day simple moving average is $91.72 and its 200-day simple moving average is $87.27. Canadian Pacific Kansas City Limited has a twelve month low of $68.42 and a twelve month high of $96.90. 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 posted its quarterly earnings results on Wednesday, July 29th. The transportation company reported $0.92 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.89 by $0.03. Canadian Pacific Kansas City had a net margin of 25.02% and a return on equity of 9.02%. The firm had revenue of $2.93 billion during the quarter, compared to analyst estimates of $2.89 billion. During the same quarter in the prior year, the business posted $1.12 earnings per share. The company's quarterly revenue was up 12.6% compared to the same quarter last year. As a group, research analysts expect that Canadian Pacific Kansas City Limited will post 3.72 EPS for the current fiscal year.

Canadian Pacific Kansas City Announces Dividend

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

Analysts Set New Price Targets

A number of brokerages recently issued reports on CP. Scotiabank reaffirmed an "outperform" rating on shares of Canadian Pacific Kansas City in a research report on Thursday, July 16th. Wall Street Zen raised shares of Canadian Pacific Kansas City from a "sell" rating to a "hold" rating in a report on Sunday, July 26th. Canadian Imperial Bank of Commerce raised their price target 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. Susquehanna boosted their price objective on shares of Canadian Pacific Kansas City from $104.00 to $106.00 and gave the stock a "positive" rating in a report on Tuesday, July 14th. Finally, Royal Bank Of Canada restated an "outperform" rating and set a $145.00 price objective (up from $139.00) on shares of Canadian Pacific Kansas City in a report on Thursday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $108.60.

About Canadian Pacific Kansas City

Canadian Pacific Kansas City Limited NYSE: CP is a North American transportation company that operates the Canadian Pacific Kansas City (CPKC) railway. Headquartered in Calgary, Alberta, the company provides rail transportation and logistics services for freight customers across Canada, the United States and Mexico.

CPKC transports a broad range of commodities and products, including grain and fertilizers, coal, energy and chemicals, forest products, metals and minerals, automotive goods, industrial and consumer products, and intermodal freight.

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