Canadian Pacific Kansas City Limited $CP Shares Bought by Cantillon Capital Management LLC

Key Points

• Cantillon Capital Management increased its stake in Canadian Pacific Kansas City by 3.2% in the first quarter, ending with 4.34 million shares valued at about $341.7 million.
• The railroad operator reported Q1 earnings of $0.76 per share, missing analyst estimates, while revenue of $2.66 billion also came in below expectations and was down 2.5% from a year earlier.
• Canadian Pacific Kansas City raised its quarterly dividend to $0.268 per share from $0.23, and analysts currently rate the stock Moderate Buy with a consensus price target of $104.91.

Cantillon Capital Management LLC increased its position in Canadian Pacific Kansas City Limited (NYSE:CP - Free Report) TSE: CP by 3.2% during the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 4,344,435 shares of the transportation company's stock after acquiring an additional 136,577 shares during the period. Canadian Pacific Kansas City makes up 2.3% of Cantillon Capital Management LLC's portfolio, making the stock its 20th biggest position. Cantillon Capital Management LLC owned approximately 0.49% of Canadian Pacific Kansas City worth $341,733,000 at the end of the most recent quarter.

Other institutional investors have also recently added to or reduced their stakes in the company. Rothschild & Co Wealth Management UK Ltd grew its holdings in Canadian Pacific Kansas City by 0.9% during the fourth quarter. Rothschild & Co Wealth Management UK Ltd now owns 5,353,188 shares of the transportation company's stock valued at $394,156,000 after purchasing an additional 48,258 shares during the last quarter. Cardinal Capital Management Inc. boosted its stake in Canadian Pacific Kansas City by 3.7% during the 4th quarter. Cardinal Capital Management Inc. now owns 1,549,556 shares of the transportation company's stock valued at $114,094,000 after purchasing an additional 55,423 shares during the period. Rathbones Group PLC grew its holdings in Canadian Pacific Kansas City by 5.9% in the 4th quarter. Rathbones Group PLC now owns 1,729,339 shares of the transportation company's stock valued at $127,342,000 after buying an additional 95,727 shares during the last quarter. HighTower Advisors LLC increased its position in Canadian Pacific Kansas City by 6.2% in the 4th quarter. HighTower Advisors LLC now owns 630,624 shares of the transportation company's stock worth $46,434,000 after buying an additional 37,044 shares during the period. Finally, Jennison Associates LLC bought a new position in Canadian Pacific Kansas City in the 4th quarter worth approximately $1,983,000. 72.20% of the stock is currently owned by institutional investors and hedge funds.

Canadian Pacific Kansas City Price Performance

Shares of Canadian Pacific Kansas City stock opened at $93.70 on Monday. The firm's 50-day moving average price is $88.24 and its two-hundred day moving average price is $82.83. The company has a current ratio of 0.67, a quick ratio of 0.57 and a debt-to-equity ratio of 0.46. Canadian Pacific Kansas City Limited has a 1-year low of $68.42 and a 1-year high of $93.95. The stock has a market capitalization of $82.93 billion, a price-to-earnings ratio of 28.92, a P/E/G ratio of 1.87 and a beta of 1.10.

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 for the quarter, missing analysts' consensus estimates of $0.78 by ($0.02). The business 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 business's quarterly revenue was down 2.5% compared to the same quarter last year. During the same quarter last year, the business posted $1.06 earnings per share. On average, equities analysts predict that Canadian Pacific Kansas City Limited will post 3.68 earnings per share for the current fiscal year.

Canadian Pacific Kansas City Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, July 27th. Stockholders of record on Friday, June 26th will be paid a dividend of $0.268 per share. This represents a $1.07 annualized dividend and a dividend yield of 1.1%. This is a boost from Canadian Pacific Kansas City's previous quarterly dividend of $0.23. The ex-dividend date of this dividend is Friday, June 26th. Canadian Pacific Kansas City's payout ratio is currently 24.07%.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on CP shares. Scotiabank restated an "outperform" rating on shares of Canadian Pacific Kansas City in a research note on Thursday. Susquehanna upped their price target on Canadian Pacific Kansas City from $104.00 to $106.00 and gave the company a "positive" rating in a report on Tuesday, July 14th. Citizens Jmp assumed coverage on Canadian Pacific Kansas City in a research report on Wednesday, July 15th. They issued a "market perform" rating for the company. Barclays set a $102.00 target price on Canadian Pacific Kansas City and gave the company an "overweight" rating in a research note on Thursday, June 25th. Finally, Sanford C. Bernstein raised their target price on Canadian Pacific Kansas City from $85.41 to $90.00 and gave the stock a "market perform" rating in a research report on Tuesday, March 31st. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $104.91.

Canadian Pacific Kansas City Company 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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