Canadian Pacific Kansas City Limited $CP Stock Position Lowered by WCM Investment Management LLC

Key Points

• WCM Investment Management trimmed its stake in Canadian Pacific Kansas City by 1.4% in the first quarter, though it still held 16.1 million shares valued at about $1.25 billion.
• Canadian Pacific Kansas City reported slightly weaker-than-expected first-quarter results, with EPS of $0.76 versus $0.78 expected and revenue of $2.66 billion versus $2.70 billion forecast.
• The company raised its quarterly dividend to $0.268 per share from $0.23, and analysts currently rate the stock a Moderate Buy with an average target price of $104.91.

WCM Investment Management LLC decreased its position in Canadian Pacific Kansas City Limited (NYSE:CP - Free Report) TSE: CP by 1.4% during the 1st quarter, according to its most recent disclosure with the SEC. The fund owned 16,084,320 shares of the transportation company's stock after selling 222,618 shares during the period. Canadian Pacific Kansas City comprises approximately 2.8% of WCM Investment Management LLC's portfolio, making the stock its 10th biggest holding. WCM Investment Management LLC owned about 1.81% of Canadian Pacific Kansas City worth $1,246,856,000 at the end of the most recent reporting period.

Several other hedge funds also recently made changes to their positions in the company. Prosperity Bancshares Inc purchased a new position in shares of Canadian Pacific Kansas City during the fourth quarter valued at approximately $26,000. Gilpin Wealth Management LLC bought a new stake in shares of Canadian Pacific Kansas City in the 4th quarter worth $29,000. McMillan Office Inc. purchased a new position in shares of Canadian Pacific Kansas City in the fourth quarter worth $31,000. Acadian Asset Management LLC purchased a new position in shares of Canadian Pacific Kansas City in the first quarter worth $35,000. Finally, Wealth Watch Advisors INC bought a new position in shares of Canadian Pacific Kansas City during the third quarter valued at $36,000. 72.20% of the stock is owned by hedge funds and other institutional investors.

Canadian Pacific Kansas City Trading Down 0.0%

NYSE:CP opened at $93.70 on Monday. Canadian Pacific Kansas City Limited has a 52 week low of $68.42 and a 52 week high of $93.95. The firm has a 50 day moving average of $88.24 and a 200 day moving average of $82.83. The company has a quick ratio of 0.57, a current ratio of 0.67 and a debt-to-equity ratio of 0.46. The stock has a market capitalization of $82.93 billion, a price-to-earnings ratio of 28.92, a PEG ratio of 1.87 and a beta of 1.10.

Canadian Pacific Kansas City (NYSE:CP - Get Free Report) TSE: CP last released its quarterly earnings results on Wednesday, April 29th. The transportation company reported $0.76 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.78 by ($0.02). The firm had revenue of $2.66 billion during the quarter, compared to analysts' expectations of $2.70 billion. Canadian Pacific Kansas City had a return on equity of 8.86% and a net margin of 27.20%.Canadian Pacific Kansas City's revenue for the quarter was down 2.5% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.06 earnings per share. As a group, sell-side analysts anticipate 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 business also recently declared a quarterly dividend, which will be paid on Monday, July 27th. Shareholders of record on Friday, June 26th will be issued a $0.268 dividend. The ex-dividend date of this dividend is Friday, June 26th. This is a boost from Canadian Pacific Kansas City's previous quarterly dividend of $0.23. This represents a $1.07 dividend on an annualized basis and a yield of 1.1%. Canadian Pacific Kansas City's dividend payout ratio is presently 24.07%.

Wall Street Analyst Weigh In

CP has been the subject of a number of recent analyst reports. Citigroup boosted their target price on Canadian Pacific Kansas City from $97.00 to $106.00 and gave the stock a "buy" rating in a research report on Thursday, July 9th. Scotiabank reissued an "outperform" rating on shares of Canadian Pacific Kansas City in a report on Thursday. 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 downgraded shares of Canadian Pacific Kansas City from a "strong-buy" rating to a "moderate buy" rating in a research report on Friday, April 17th. Finally, Barclays set a $102.00 price objective on Canadian Pacific Kansas City and gave the stock an "overweight" rating in a report on Thursday, June 25th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price 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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