Bowie Capital Management LLC Cuts Holdings in Canadian Pacific Kansas City Limited (NYSE:CP)

Key Points

• Bowie Capital Management LLC significantly reduced its stake in Canadian Pacific Kansas City Limited by 86.9%, now holding only 82,743 shares valued at approximately $5.8 million.
• The company recently announced an increase in its quarterly dividend to $0.1651 per share, representing a yield of 0.9% with a payout ratio of 20.56%.
• Analysts have set a consensus rating of "Moderate Buy" for Canadian Pacific Kansas City, with an average price target of $92.30.

Bowie Capital Management LLC lessened its stake in Canadian Pacific Kansas City Limited (NYSE:CP - Free Report) TSE: CP by 86.9% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 82,743 shares of the transportation company's stock after selling 547,679 shares during the period. Canadian Pacific Kansas City makes up about 0.3% of Bowie Capital Management LLC's holdings, making the stock its 24th biggest holding. Bowie Capital Management LLC's holdings in Canadian Pacific Kansas City were worth $5,809,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also bought and sold shares of the stock. Cornerstone Planning Group LLC boosted its stake in shares of Canadian Pacific Kansas City by 209.8% in the 1st quarter. Cornerstone Planning Group LLC now owns 378 shares of the transportation company's stock valued at $28,000 after purchasing an additional 256 shares in the last quarter. North Capital Inc. purchased a new stake in shares of Canadian Pacific Kansas City in the 1st quarter valued at $27,000. Cheviot Value Management LLC purchased a new stake in Canadian Pacific Kansas City during the 1st quarter valued at $30,000. Bernard Wealth Management Corp. purchased a new stake in Canadian Pacific Kansas City during the 4th quarter valued at $31,000. Finally, Hexagon Capital Partners LLC boosted its position in Canadian Pacific Kansas City by 49.5% during the 1st quarter. Hexagon Capital Partners LLC now owns 495 shares of the transportation company's stock valued at $35,000 after buying an additional 164 shares during the period. Hedge funds and other institutional investors own 72.20% of the company's stock.

Canadian Pacific Kansas City Stock Performance

Shares of Canadian Pacific Kansas City stock opened at $74.12 on Friday. The business has a 50-day moving average of $78.45 and a 200 day moving average of $76.75. The company has a debt-to-equity ratio of 0.45, a current ratio of 0.93 and a quick ratio of 0.81. The stock has a market capitalization of $67.72 billion, a price-to-earnings ratio of 23.09, a price-to-earnings-growth ratio of 2.07 and a beta of 1.06. Canadian Pacific Kansas City Limited has a 12 month low of $66.49 and a 12 month high of $87.72.

Canadian Pacific Kansas City (NYSE:CP - Get Free Report) TSE: CP last released its earnings results on Wednesday, July 30th. The transportation company reported $0.81 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.82 by ($0.01). Canadian Pacific Kansas City had a net margin of 28.05% and a return on equity of 8.69%. The company had revenue of $2.72 billion during the quarter, compared to analyst estimates of $2.76 billion. During the same period in the previous year, the firm posted $1.05 EPS. The company's revenue for the quarter was up 2.7% on a year-over-year basis. As a group, sell-side analysts forecast that Canadian Pacific Kansas City Limited will post 3.42 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, October 27th. Investors of record on Friday, September 26th will be given a $0.1651 dividend. The ex-dividend date is Friday, September 26th. This represents a $0.66 annualized dividend and a yield of 0.9%. This is an increase from Canadian Pacific Kansas City's previous quarterly dividend of $0.16. Canadian Pacific Kansas City's payout ratio is 20.56%.

Analysts Set New Price Targets

Several brokerages have weighed in on CP. Citigroup increased their price target on shares of Canadian Pacific Kansas City from $89.00 to $94.00 and gave the company a "buy" rating in a research report on Wednesday, July 9th. The Goldman Sachs Group reissued a "neutral" rating and set a $91.00 price target on shares of Canadian Pacific Kansas City in a research report on Monday, June 2nd. Scotiabank reissued an "outperform" rating on shares of Canadian Pacific Kansas City in a research report on Thursday, July 10th. Stephens increased their price target on shares of Canadian Pacific Kansas City from $95.00 to $97.00 and gave the company an "overweight" rating in a research report on Thursday, July 31st. Finally, Wall Street Zen cut shares of Canadian Pacific Kansas City from a "hold" rating to a "sell" rating in a research report on Saturday, June 14th. Two research analysts have rated the stock with a sell rating, four have assigned a hold rating, eleven have assigned a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $92.30.

Canadian Pacific Kansas City Company Profile

Canadian Pacific Kansas City Limited, together with its subsidiaries, owns and operates a transcontinental freight railway in Canada, the United States, and Mexico. The company transports bulk commodities, including grain, coal, potash, fertilizers, and sulphur; merchandise freight, such as forest products, energy, chemicals and plastics, metals, minerals, consumer products, and automotive; and intermodal traffic comprising retail goods in overseas containers.

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