Barometer Capital Management Inc. Buys New Stake in Canadian Pacific Kansas City Limited $CP

Key Points

• Barometer Capital Management opened a new position in Canadian Pacific Kansas City during the first quarter, buying 115,000 shares worth about $9.0 million. The stake makes CP its fifth-largest holding and represents 3.7% of its portfolio.
• Institutional ownership in Canadian Pacific Kansas City remains high at 72.20%, and several other hedge funds also recently initiated small positions in the stock. This suggests continued investor interest despite mixed analyst views.
• CP recently raised its quarterly dividend to $0.268 per share from $0.23, for an annualized yield of about 1.2%. The company also reported quarterly EPS and revenue that came in slightly below analyst expectations.

Barometer Capital Management Inc. bought 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 bought 115,000 shares of the transportation company's stock, valued at approximately $9,046,000. Canadian Pacific Kansas City comprises 3.7% of Barometer Capital Management Inc.'s holdings, making the stock its 5th biggest holding.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Prosperity Bancshares Inc purchased a new position in shares of Canadian Pacific Kansas City in the 4th quarter valued at about $26,000. Gilpin Wealth Management LLC purchased a new stake in Canadian Pacific Kansas City during the 4th quarter worth approximately $29,000. McMillan Office Inc. purchased a new stake in Canadian Pacific Kansas City during the 4th quarter worth approximately $31,000. Acadian Asset Management LLC acquired a new position in Canadian Pacific Kansas City in the 1st quarter valued at $35,000. Finally, Wealth Watch Advisors INC acquired a new stake in shares of Canadian Pacific Kansas City in the third quarter valued at about $36,000. Hedge funds and other institutional investors own 72.20% of the company's stock.

Analyst Upgrades and Downgrades

CP has been the topic of a number of recent research reports. National Bank Financial raised Canadian Pacific Kansas City from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, April 15th. Wall Street Zen downgraded Canadian Pacific Kansas City from a "hold" rating to a "sell" rating in a report on Saturday. Argus set a $105.00 target price on shares of Canadian Pacific Kansas City in a report on Tuesday, June 16th. ATB Cormark Capital Markets cut Canadian Pacific Kansas City from a "strong-buy" rating to a "moderate buy" rating in a research note on Friday, April 17th. Finally, Citizens Jmp started coverage on shares of Canadian Pacific Kansas City in a research note on Wednesday, July 15th. They set a "market perform" rating for the company. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $104.91.

Canadian Pacific Kansas City Stock Performance

NYSE CP opened at $91.25 on Wednesday. Canadian Pacific Kansas City Limited has a 1 year low of $68.42 and a 1 year high of $93.95. The company has a debt-to-equity ratio of 0.46, a current ratio of 0.67 and a quick ratio of 0.57. The company has a market capitalization of $80.76 billion, a PE ratio of 28.16, a P/E/G ratio of 1.83 and a beta of 1.10. The company has a fifty day moving average of $88.49 and a two-hundred day moving average of $83.07.

Canadian Pacific Kansas City (NYSE:CP - Get Free Report) TSE: CP last announced its earnings results on Wednesday, April 29th. The transportation company reported $0.76 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.78 by ($0.02). The firm had revenue of $2.66 billion during the quarter, compared to analyst estimates of $2.70 billion. Canadian Pacific Kansas City had a net margin of 27.20% and a return on equity of 8.86%. The firm's revenue for the quarter was down 2.5% compared to the same quarter last year. During the same period last year, the company earned $1.06 earnings per share. As a group, analysts expect that Canadian Pacific Kansas City Limited will post 3.69 earnings per share for the current year.

Canadian Pacific Kansas City Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, July 27th. Stockholders of record on Friday, June 26th will be given a dividend of $0.268 per share. This represents a $1.07 dividend on an annualized basis and a dividend yield of 1.2%. This is a boost from Canadian Pacific Kansas City's previous quarterly dividend of $0.23. The ex-dividend date is Friday, June 26th. Canadian Pacific Kansas City's payout ratio is 24.07%.

About Canadian Pacific Kansas City

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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