Burgundy Asset Management Ltd. Grows Stake in Canadian National Railway Company $CNI

Key Points

• Burgundy Asset Management increased its stake in Canadian National Railway by 19.3% in Q3 to 845,531 shares (about 0.14% of the company) worth $81.8M, while other institutions also added positions, leaving institutional ownership near 80.74%.
• CN raised its quarterly dividend to $0.915 (annualized $3.66), yielding roughly 3.3% with an ex‑dividend date of March 10 and a payout ratio around 46.6%.
• The company beat EPS estimates (reported $1.49 vs. $1.43 expected) with revenue of $3.24B (up 2.4% YoY); the stock trades near $110.76, has a market cap of $67.9B and a consensus analyst rating of "Moderate Buy" with an average target of $118.91.

Burgundy Asset Management Ltd. grew its holdings in shares of Canadian National Railway Company (NYSE:CNI - Free Report) TSE: CNR by 19.3% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 845,531 shares of the transportation company's stock after purchasing an additional 136,747 shares during the period. Burgundy Asset Management Ltd. owned approximately 0.14% of Canadian National Railway worth $81,803,000 at the end of the most recent quarter.

Other institutional investors have also recently made changes to their positions in the company. Norges Bank purchased a new stake in Canadian National Railway in the second quarter valued at about $591,904,000. Fisher Asset Management LLC acquired a new position in shares of Canadian National Railway during the second quarter valued at about $189,748,000. Troy Asset Management Ltd raised its position in shares of Canadian National Railway by 158.8% in the 3rd quarter. Troy Asset Management Ltd now owns 2,738,372 shares of the transportation company's stock valued at $258,220,000 after purchasing an additional 1,680,223 shares during the last quarter. The Manufacturers Life Insurance Company raised its position in shares of Canadian National Railway by 26.6% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 6,705,679 shares of the transportation company's stock valued at $695,048,000 after purchasing an additional 1,408,978 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership boosted its stake in Canadian National Railway by 20.1% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 6,296,828 shares of the transportation company's stock worth $655,768,000 after purchasing an additional 1,051,977 shares in the last quarter. Institutional investors and hedge funds own 80.74% of the company's stock.

Canadian National Railway Stock Down 0.4%

Shares of CNI opened at $110.76 on Thursday. The company has a market capitalization of $67.91 billion, a price-to-earnings ratio of 20.40, a PEG ratio of 2.34 and a beta of 0.90. Canadian National Railway Company has a 52 week low of $90.74 and a 52 week high of $113.08. The stock's 50-day moving average price is $102.60 and its 200-day moving average price is $97.96. The company has a quick ratio of 0.47, a current ratio of 0.67 and a debt-to-equity ratio of 0.94.

Canadian National Railway (NYSE:CNI - Get Free Report) TSE: CNR last announced its quarterly earnings results on Friday, January 30th. The transportation company reported $1.49 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.43 by $0.06. Canadian National Railway had a return on equity of 22.14% and a net margin of 27.28%.The company had revenue of $3.24 billion during the quarter, compared to the consensus estimate of $4.43 billion. During the same period in the previous year, the company posted $1.82 earnings per share. Canadian National Railway's revenue for the quarter was up 2.4% on a year-over-year basis. On average, sell-side analysts predict that Canadian National Railway Company will post 5.52 EPS for the current year.

Canadian National Railway Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Tuesday, March 10th will be issued a dividend of $0.915 per share. This represents a $3.66 dividend on an annualized basis and a yield of 3.3%. This is a boost from Canadian National Railway's previous quarterly dividend of $0.89. The ex-dividend date of this dividend is Tuesday, March 10th. Canadian National Railway's payout ratio is currently 46.59%.

Analyst Ratings Changes

A number of research analysts have issued reports on the stock. BMO Capital Markets reaffirmed an "outperform" rating on shares of Canadian National Railway in a report on Monday, February 2nd. Citigroup reduced their target price on Canadian National Railway from $119.00 to $115.00 and set a "buy" rating for the company in a research note on Monday, February 2nd. UBS Group cut Canadian National Railway from a "strong-buy" rating to a "hold" rating in a research report on Monday, February 2nd. Royal Bank Of Canada cut their price objective on Canadian National Railway from $153.00 to $151.00 and set an "outperform" rating on the stock in a report on Monday, February 2nd. Finally, Zacks Research upgraded Canadian National Railway from a "strong sell" rating to a "hold" rating in a research note on Friday, November 28th. Ten investment analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $118.91.

About Canadian National Railway

Canadian National Railway Company NYSE: CNI is a Class I freight railway that operates an integrated rail network across Canada and the United States. Headquartered in Montreal, Quebec, CN provides long-haul freight transportation and related logistics services that connect major ports, industrial centers and inland markets throughout North America. Its transcontinental system enables cross-border movement of goods and supports supply chains that span coast-to-coast in Canada and into the central and eastern United States.

CN's core business is the railborne transportation of a broad mix of commodities, including intermodal container traffic, forest and paper products, grain and other agricultural products, metallurgical and industrial products, petroleum and chemical products, coal and automotive shipments.

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