Capital Innovations LLC Buys New Position in Canadian Pacific Kansas City Limited $CP

Key Points

• Capital Innovations LLC initiated a new position in Canadian Pacific Kansas City, buying 142,128 shares worth about $10.5 million in the fourth quarter. The stake now represents roughly 3.0% of the firm’s portfolio.
• Wall Street sentiment on CP is broadly positive, with an average rating of “Moderate Buy” and a consensus price target of $96.50. Recent analyst moves included Barclays reiterating an overweight view and Citigroup raising its target to $97.
• Canadian Pacific Kansas City reported Q1 earnings and revenue below expectations, posting $0.76 EPS versus the $0.78 estimate and $2.66 billion in revenue versus $2.70 billion expected. The company also raised its quarterly dividend to $0.268 per share, up from $0.23.

Capital Innovations LLC bought a new stake in Canadian Pacific Kansas City Limited (NYSE:CP - Free Report) TSE: CP in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund bought 142,128 shares of the transportation company's stock, valued at approximately $10,465,000. Canadian Pacific Kansas City comprises approximately 3.0% of Capital Innovations LLC's investment portfolio, making the stock its 12th biggest position.

Several other institutional investors have also recently added to or reduced their stakes in CP. Meixler Investment Management Ltd. acquired a new position in shares of Canadian Pacific Kansas City during the 3rd quarter valued at about $1,644,000. Rothschild & Co Wealth Management UK Ltd increased its stake in shares of Canadian Pacific Kansas City by 0.9% during the 4th 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 acquiring an additional 48,258 shares during the last quarter. Envestnet Asset Management Inc. increased its stake in shares of Canadian Pacific Kansas City by 1.3% during the 3rd 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 during the last quarter. Oppenheimer Asset Management Inc. increased its stake in shares of Canadian Pacific Kansas City by 7.5% during the 3rd 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 last quarter. Finally, Templeton & Phillips Capital Management LLC increased its stake in shares of Canadian Pacific Kansas City by 100.0% during the 3rd 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 last quarter. Institutional investors and hedge funds own 72.20% of the company's stock.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on CP shares. Barclays set a $99.00 price objective on shares of Canadian Pacific Kansas City and gave the company an "overweight" rating in a research note on Thursday, April 30th. Scotiabank downgraded shares of Canadian Pacific Kansas City from a "strong-buy" rating to a "hold" rating in a research note on Thursday, April 9th. Wall Street Zen raised shares of Canadian Pacific Kansas City from a "sell" rating to a "hold" rating in a research note on Saturday. Sanford C. Bernstein upped their price objective on shares of Canadian Pacific Kansas City from $85.41 to $90.00 and gave the company a "market perform" rating in a research note on Tuesday, March 31st. Finally, Citigroup upped their price objective on shares of Canadian Pacific Kansas City from $93.00 to $97.00 and gave the company a "buy" rating in a research note on Thursday, April 30th. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Canadian Pacific Kansas City currently has an average rating of "Moderate Buy" and an average target price of $96.50.

Canadian Pacific Kansas City Stock Up 1.7%

Shares of NYSE:CP opened at $90.20 on Wednesday. The company has a debt-to-equity ratio of 0.46, a quick ratio of 0.57 and a current ratio of 0.67. Canadian Pacific Kansas City Limited has a 1 year low of $68.42 and a 1 year high of $91.46. The stock has a market capitalization of $80.02 billion, a P/E ratio of 27.84, a PEG ratio of 1.90 and a beta of 1.09. The stock has a 50-day simple moving average of $83.52 and a 200-day simple moving average of $79.02.

Canadian Pacific Kansas City (NYSE:CP - Get Free Report) TSE: CP last issued its earnings results on Wednesday, April 29th. The transportation company reported $0.76 earnings per share (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 firm had revenue of $2.66 billion for the quarter, compared to analysts' expectations of $2.70 billion. During the same quarter in the previous year, the firm posted $1.06 EPS. The firm's revenue for the quarter was down 2.5% compared to the same quarter last year. Equities analysts forecast that Canadian Pacific Kansas City Limited will post 3.76 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, July 27th. Stockholders of record on Friday, June 26th will be issued a dividend of $0.268 per share. This represents a $1.07 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date is Friday, June 26th. This is an increase from Canadian Pacific Kansas City's previous quarterly dividend of $0.23. Canadian Pacific Kansas City's dividend payout ratio (DPR) is presently 20.68%.

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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