Encompass Capital Advisors LLC Acquires New Stake in Canadian National Railway Company $CNI

Key Points

• Encompass Capital Advisors LLC has acquired 500,000 shares of Canadian National Railway Company (CNI), representing about $48.7 million and making it the 20th largest position in their portfolio.
• Various institutional investors have increased their holdings in Canadian National Railway, with 80.74% of the stock currently owned by such entities.
• The company has announced a quarterly dividend increase from $0.62 to $0.6507, scheduled for payment on September 29th, reflecting a 2.7% annual yield.

Encompass Capital Advisors LLC purchased a new stake in Canadian National Railway Company (NYSE:CNI - Free Report) TSE: CNR in the 1st quarter, according to its most recent filing with the SEC. The fund purchased 500,000 shares of the transportation company's stock, valued at approximately $48,710,000. Canadian National Railway comprises about 1.9% of Encompass Capital Advisors LLC's portfolio, making the stock its 20th largest position. Encompass Capital Advisors LLC owned 0.08% of Canadian National Railway at the end of the most recent reporting period.

Several other institutional investors also recently bought and sold shares of CNI. Dagco Inc. acquired a new stake in shares of Canadian National Railway during the 1st quarter worth $32,000. Bruce G. Allen Investments LLC increased its holdings in shares of Canadian National Railway by 44.2% during the 1st quarter. Bruce G. Allen Investments LLC now owns 346 shares of the transportation company's stock worth $34,000 after buying an additional 106 shares during the last quarter. CX Institutional acquired a new stake in shares of Canadian National Railway during the 1st quarter worth $39,000. Brooklyn Investment Group increased its holdings in shares of Canadian National Railway by 354.3% during the 1st quarter. Brooklyn Investment Group now owns 427 shares of the transportation company's stock worth $42,000 after buying an additional 333 shares during the last quarter. Finally, Dunhill Financial LLC increased its holdings in shares of Canadian National Railway by 1,020.0% during the 4th quarter. Dunhill Financial LLC now owns 560 shares of the transportation company's stock worth $57,000 after buying an additional 510 shares during the last quarter. 80.74% of the stock is currently owned by institutional investors and hedge funds.

Canadian National Railway Stock Performance

Shares of NYSE:CNI traded down $1.06 during trading hours on Monday, hitting $95.49. The stock had a trading volume of 2,631,048 shares, compared to its average volume of 1,529,399. The stock's fifty day simple moving average is $97.88 and its 200 day simple moving average is $99.77. Canadian National Railway Company has a 1-year low of $91.65 and a 1-year high of $121.12. The firm has a market capitalization of $59.61 billion, a price-to-earnings ratio of 18.36, a PEG ratio of 2.22 and a beta of 0.94. The company has a debt-to-equity ratio of 0.90, a quick ratio of 0.58 and a current ratio of 0.82.

Canadian National Railway (NYSE:CNI - Get Free Report) TSE: CNR last posted its quarterly earnings data on Tuesday, July 22nd. The transportation company reported $1.35 EPS for the quarter, missing analysts' consensus estimates of $1.37 by ($0.02). Canadian National Railway had a net margin of 26.63% and a return on equity of 21.71%. The company had revenue of $3.14 billion for the quarter, compared to analyst estimates of $4.34 billion. During the same quarter in the prior year, the business earned $1.84 EPS. Canadian National Railway's revenue was down 1.3% compared to the same quarter last year. Sell-side analysts anticipate that Canadian National Railway Company will post 5.52 earnings per share for the current fiscal year.

Canadian National Railway Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 29th. Investors of record on Monday, September 8th will be paid a dividend of $0.6507 per share. This is a boost from Canadian National Railway's previous quarterly dividend of $0.62. This represents a $2.60 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date is Monday, September 8th. Canadian National Railway's dividend payout ratio (DPR) is 49.81%.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on CNI shares. Royal Bank Of Canada dropped their price objective on Canadian National Railway from $161.00 to $157.00 and set an "outperform" rating for the company in a report on Wednesday, July 23rd. Barclays lowered their price target on Canadian National Railway from $106.00 to $99.00 and set an "equal weight" rating for the company in a report on Wednesday, July 23rd. Raymond James Financial upgraded Canadian National Railway from a "market perform" rating to an "outperform" rating in a report on Thursday, July 17th. JPMorgan Chase & Co. reiterated a "neutral" rating on shares of Canadian National Railway in a report on Wednesday, July 23rd. Finally, Susquehanna lowered their price target on Canadian National Railway from $122.00 to $120.00 and set a "positive" rating for the company in a report on Wednesday, July 23rd. Two analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, nine have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $118.36.

Canadian National Railway Company Profile

Canadian National Railway Company, together with its subsidiaries, engages in the rail, intermodal, trucking, and marine transportation and logistics business in Canada and the United States. The company provides rail services, which include equipment, custom brokerage services, transloading and distribution, business development and real estate, and private car storage services; and intermodal services, such as temperature controlled cargo, port partnerships, and logistics parks.