Cantillon Capital Management LLC Grows Stake in Canadian Pacific Kansas City Limited $CP

Key Points

• Cantillon Capital Management increased its stake in Canadian Pacific Kansas City by 0.8% in the fourth quarter, ending with 4.21 million shares worth about $309.8 million. Institutional investors remain heavily involved, owning roughly 72.2% of the company.
• Canadian Pacific Kansas City reported mixed first-quarter results, with EPS of $0.76 missing estimates of $0.78 and revenue of $2.66 billion falling slightly short of expectations. Revenue also declined 2.5% year over year.
• The railroad company raised its quarterly dividend to $0.268 per share from $0.23, implying an annualized yield of about 1.2%. Analysts currently rate the stock a “Moderate Buy,” with an average target price of $98.63.

Cantillon Capital Management LLC increased its position in Canadian Pacific Kansas City Limited (NYSE:CP - Free Report) TSE: CP by 0.8% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 4,207,858 shares of the transportation company's stock after acquiring an additional 33,849 shares during the period. Cantillon Capital Management LLC owned about 0.47% of Canadian Pacific Kansas City worth $309,825,000 at the end of the most recent reporting period.

A number of other hedge funds also recently bought and sold shares of CP. Meixler Investment Management Ltd. purchased a new stake in shares of Canadian Pacific Kansas City in the third quarter worth about $1,644,000. 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 worth $394,156,000 after acquiring an additional 48,258 shares during the period. Envestnet Asset Management Inc. raised its position in Canadian Pacific Kansas City by 1.3% during the third quarter. Envestnet Asset Management Inc. now owns 1,127,435 shares of the transportation company's stock valued at $83,985,000 after acquiring an additional 14,916 shares in the last quarter. Oppenheimer Asset Management Inc. lifted its holdings in Canadian Pacific Kansas City by 7.5% in the third quarter. Oppenheimer Asset Management Inc. now owns 153,448 shares of the transportation company's stock valued at $11,430,000 after acquiring an additional 10,726 shares during the period. Finally, Templeton & Phillips Capital Management LLC lifted its holdings in Canadian Pacific Kansas City by 100.0% in the third quarter. Templeton & Phillips Capital Management LLC now owns 28,660 shares of the transportation company's stock valued at $2,135,000 after acquiring an additional 14,330 shares during the period. Hedge funds and other institutional investors own 72.20% of the company's stock.

Canadian Pacific Kansas City Stock Performance

CP opened at $90.07 on Monday. The firm's fifty day simple moving average is $84.36 and its two-hundred day simple moving average is $79.54. Canadian Pacific Kansas City Limited has a 52-week low of $68.42 and a 52-week high of $91.50. The company has a market cap of $79.91 billion, a price-to-earnings ratio of 27.80, a PEG ratio of 1.92 and a beta of 1.09. The company has a quick ratio of 0.57, a current ratio of 0.67 and a debt-to-equity ratio of 0.46.

Canadian Pacific Kansas City (NYSE:CP - Get Free Report) TSE: CP last released its earnings results on Wednesday, April 29th. The transportation company reported $0.76 EPS for the quarter, missing analysts' consensus estimates of $0.78 by ($0.02). Canadian Pacific Kansas City had a return on equity of 8.86% and a net margin of 27.20%.The company had revenue of $2.66 billion for the quarter, compared to analysts' expectations of $2.70 billion. During the same period in the prior year, the firm earned $1.06 EPS. The firm's revenue for the quarter was down 2.5% on a year-over-year basis. Equities analysts anticipate that Canadian Pacific Kansas City Limited will post 3.76 earnings per share for the current fiscal year.

Canadian Pacific Kansas City Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, July 27th. Stockholders of record on Friday, June 26th will be given a $0.268 dividend. This represents a $1.07 annualized dividend and a dividend yield of 1.2%. This is a boost from Canadian Pacific Kansas City's previous quarterly dividend of $0.23. The ex-dividend date is Friday, June 26th. Canadian Pacific Kansas City's dividend payout ratio (DPR) is 20.68%.

Wall Street Analyst Weigh In

CP has been the subject of several recent research reports. Royal Bank Of Canada cut their target price on shares of Canadian Pacific Kansas City from $128.00 to $127.00 and set an "outperform" rating for the company in a report on Thursday, April 30th. Barclays set a $99.00 price target on shares of Canadian Pacific Kansas City and gave the stock an "overweight" rating in a report on Thursday, April 30th. Scotiabank cut shares of Canadian Pacific Kansas City from a "strong-buy" rating to a "hold" rating in a report on Thursday, April 9th. Sanford C. Bernstein upped their price objective on shares of 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. Finally, Citigroup increased their target price on shares of Canadian Pacific Kansas City from $93.00 to $97.00 and gave the stock a "buy" rating in a research note on Thursday, April 30th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $98.63.

About Canadian Pacific Kansas City

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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