Bank of Nova Scotia Acquires Shares of 2,229,111 Canadian Pacific Kansas City Limited $CP

Key Points

• Bank of Nova Scotia acquired 2.23 million shares of Canadian Pacific Kansas City in the second quarter, valued at approximately $193.2 million and representing a 0.25% stake. Institutional investors and hedge funds collectively own 72.2% of the company.
• CPKC reported quarterly revenue of $2.93 billion, up 12.6% year over year, and earnings of $0.92 per share, beating analyst expectations of $0.89. The stock opened at $96.81, near its 52-week high of $96.90.
• The company declared a quarterly dividend of $0.268 per share, equivalent to an annualized $1.07 payout and a 1.1% yield. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $108.60.

Bank of Nova Scotia bought a new position in Canadian Pacific Kansas City Limited (NYSE:CP - Free Report) TSE: CP in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm bought 2,229,111 shares of the transportation company's stock, valued at approximately $193,247,000. Bank of Nova Scotia owned 0.25% of Canadian Pacific Kansas City as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds and other institutional investors have also recently bought and sold shares of CP. Norges Bank purchased a new position in shares of Canadian Pacific Kansas City during the fourth quarter valued at approximately $978,558,000. Janus Henderson Group PLC increased its stake in Canadian Pacific Kansas City by 586.1% during the 4th quarter. Janus Henderson Group PLC now owns 6,147,835 shares of the transportation company's stock worth $452,781,000 after buying an additional 5,251,755 shares during the period. FIL Ltd boosted its holdings in Canadian Pacific Kansas City by 20.2% in the fourth quarter. FIL Ltd now owns 16,666,777 shares of the transportation company's stock valued at $1,227,045,000 after purchasing an additional 2,804,686 shares during the last quarter. Bessemer Group Inc. increased its holdings in Canadian Pacific Kansas City by 5,826.3% during the 1st quarter. Bessemer Group Inc. now owns 2,545,049 shares of the transportation company's stock worth $199,605,000 after purchasing an additional 2,502,104 shares during the last quarter. Finally, Findlay Park Partners LLP acquired a new position in shares of Canadian Pacific Kansas City in the 2nd quarter valued at approximately $193,515,000. 72.20% of the stock is owned by institutional investors and hedge funds.

Canadian Pacific Kansas City Price Performance

Shares of NYSE CP opened at $96.81 on Friday. 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 current ratio of 0.59, a quick ratio of 0.50 and a debt-to-equity ratio of 0.47. The company has a market capitalization of $85.04 billion, a price-to-earnings ratio of 31.13, a price-to-earnings-growth ratio of 1.89 and a beta of 1.10. The business has a 50 day simple moving average of $90.21 and a 200-day simple moving average of $86.16.

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, 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 business had revenue of $2.93 billion for the quarter, compared to analyst estimates of $2.89 billion. During the same period in the prior year, the company posted $1.12 EPS. The business's revenue was up 12.6% compared to the same quarter last year. As a group, equities research analysts expect that Canadian Pacific Kansas City Limited will post 3.7 earnings per share for the current year.

Canadian Pacific Kansas City Announces Dividend

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. The ex-dividend date is Friday, September 25th. This represents a $1.07 annualized dividend and a yield of 1.1%. Canadian Pacific Kansas City's dividend payout ratio is 25.08%.

Wall Street Analyst Weigh In

Several research firms have recently commented on CP. Argus set a $105.00 target price on Canadian Pacific Kansas City in a research note on Tuesday, June 16th. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $145.00 price target (up from $139.00) on shares of Canadian Pacific Kansas City in a report on Thursday, July 30th. Wells Fargo & Company upped their price target on shares of Canadian Pacific Kansas City from $90.00 to $100.00 and gave the company an "overweight" rating in a report on Wednesday, July 8th. Weiss Ratings upgraded shares of Canadian Pacific Kansas City from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, July 2nd. Finally, Scotiabank reissued an "outperform" rating on shares of Canadian Pacific Kansas City in a research report on Thursday, July 16th. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $108.60.

Canadian Pacific Kansas City 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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