Canada Pension Plan Investment Board Buys 1,465,689 Shares of Canadian Pacific Kansas City Limited $CP

Key Points

• Canada Pension Plan Investment Board increased its ownership in Canadian Pacific Kansas City Limited shares by 47.7%, totaling approximately $318.8 million after acquiring 1,465,689 additional shares.
• Several institutional investors, including Dimensional Fund Advisors LP and Schonfeld Strategic Advisors LLC, have significantly raised their stakes in the company, indicating strong institutional interest.
• Canadian Pacific Kansas City announced a quarterly dividend increase to $0.1651 per share, reflecting a commitment to returning value to shareholders with a 0.9% annual yield.

Canada Pension Plan Investment Board lifted its stake in shares of Canadian Pacific Kansas City Limited (NYSE:CP - Free Report) TSE: CP by 47.7% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 4,541,610 shares of the transportation company's stock after purchasing an additional 1,465,689 shares during the period. Canada Pension Plan Investment Board owned 0.49% of Canadian Pacific Kansas City worth $318,775,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also made changes to their positions in the company. Invesco Ltd. raised its position in shares of Canadian Pacific Kansas City by 59.5% during the 1st quarter. Invesco Ltd. now owns 16,984,351 shares of the transportation company's stock valued at $1,192,471,000 after buying an additional 6,337,312 shares during the period. Goldman Sachs Group Inc. increased its position in shares of Canadian Pacific Kansas City by 70.4% during the first quarter. Goldman Sachs Group Inc. now owns 9,299,753 shares of the transportation company's stock worth $652,936,000 after acquiring an additional 3,842,866 shares during the period. Mitsubishi UFJ Trust & Banking Corp acquired a new position in shares of Canadian Pacific Kansas City during the first quarter worth $126,928,000. Causeway Capital Management LLC grew its stake in shares of Canadian Pacific Kansas City by 11.5% during the first quarter. Causeway Capital Management LLC now owns 17,208,788 shares of the transportation company's stock worth $1,207,605,000 after purchasing an additional 1,778,984 shares in the last quarter. Finally, Allspring Global Investments Holdings LLC boosted its stake in Canadian Pacific Kansas City by 44.2% in the first quarter. Allspring Global Investments Holdings LLC now owns 4,950,353 shares of the transportation company's stock valued at $351,723,000 after acquiring an additional 1,516,684 shares in the last quarter. 72.20% of the stock is currently owned by institutional investors and hedge funds.

Canadian Pacific Kansas City Stock Up 0.3%

Canadian Pacific Kansas City stock traded up $0.22 during trading hours on Tuesday, hitting $76.41. The company had a trading volume of 2,111,716 shares, compared to its average volume of 3,219,997. The firm has a market capitalization of $69.81 billion, a P/E ratio of 23.80, a price-to-earnings-growth ratio of 2.13 and a beta of 1.06. 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 firm's fifty day moving average is $77.23 and its 200-day moving average is $76.51. Canadian Pacific Kansas City Limited has a fifty-two week low of $66.49 and a fifty-two week high of $87.72.

Canadian Pacific Kansas City (NYSE:CP - Get Free Report) TSE: CP last posted 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 firm had revenue of $2.72 billion during the quarter, compared to analyst estimates of $2.76 billion. During the same quarter in the previous year, the business posted $1.05 earnings per share. The business's quarterly revenue was up 2.7% compared to the same quarter last year. On average, research 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 company also recently announced a quarterly dividend, which will be paid on Monday, October 27th. Shareholders of record on Friday, September 26th will be paid a $0.1651 dividend. The ex-dividend date of this dividend is Friday, September 26th. This is a boost from Canadian Pacific Kansas City's previous quarterly dividend of $0.16. This represents a $0.66 annualized dividend and a yield of 0.9%. Canadian Pacific Kansas City's payout ratio is currently 20.56%.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on the stock. Bank of America upped their target price on shares of Canadian Pacific Kansas City from $82.00 to $90.00 and gave the company a "buy" rating in a report on Friday, May 16th. Wall Street Zen raised shares of Canadian Pacific Kansas City from a "sell" rating to a "hold" rating in a research note on Saturday, August 23rd. Citigroup raised their target price on shares of Canadian Pacific Kansas City from $89.00 to $94.00 and gave the company a "buy" rating in a research note on Wednesday, July 9th. Susquehanna reaffirmed a "positive" rating and set a $94.00 price target (up previously from $90.00) on shares of Canadian Pacific Kansas City in a research note on Tuesday, June 24th. Finally, National Bank Financial raised shares of Canadian Pacific Kansas City from a "hold" rating to a "strong-buy" rating in a report on Wednesday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $92.30.

Canadian Pacific Kansas City 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.