Franklin Resources Inc. Has $612.48 Million Stake in Canadian Pacific Kansas City Limited $CP

Key Points

• Franklin Resources trimmed its stake in Canadian Pacific Kansas City by 8.9% in the fourth quarter, selling 810,784 shares and leaving it with 8.32 million shares worth about $612.5 million.
• Wall Street remains generally constructive on CP, with a consensus “Moderate Buy” rating and an average price target of $98.63; analysts recently set targets ranging from $90 to $104.
• Canadian Pacific Kansas City reported quarterly earnings of $0.76 per share, missing estimates, but it also raised its quarterly dividend to $0.268 per share, implying a 1.2% yield.

Franklin Resources Inc. reduced its stake in shares of Canadian Pacific Kansas City Limited (NYSE:CP - Free Report) TSE: CP by 8.9% in the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 8,318,781 shares of the transportation company's stock after selling 810,784 shares during the quarter. Franklin Resources Inc. owned approximately 0.93% of Canadian Pacific Kansas City worth $612,484,000 as of its most recent filing with the SEC.

Other institutional investors have also made changes to their positions in the company. Cromwell Holdings LLC boosted its stake in shares of Canadian Pacific Kansas City by 8.1% during the 4th quarter. Cromwell Holdings LLC now owns 1,936 shares of the transportation company's stock valued at $143,000 after buying an additional 145 shares during the period. Fortune Financial Advisors LLC raised its holdings in shares of Canadian Pacific Kansas City by 1.2% during the fourth quarter. Fortune Financial Advisors LLC now owns 13,623 shares of the transportation company's stock worth $1,003,000 after acquiring an additional 158 shares in the last quarter. Brookstone Capital Management boosted its position in Canadian Pacific Kansas City by 1.2% during the fourth quarter. Brookstone Capital Management now owns 14,355 shares of the transportation company's stock valued at $1,057,000 after purchasing an additional 176 shares during the last quarter. EverSource Wealth Advisors LLC grew its stake in Canadian Pacific Kansas City by 15.3% in the fourth quarter. EverSource Wealth Advisors LLC now owns 1,518 shares of the transportation company's stock valued at $112,000 after purchasing an additional 202 shares in the last quarter. Finally, Advisory Services Network LLC increased its position in Canadian Pacific Kansas City by 3.1% in the 3rd quarter. Advisory Services Network LLC now owns 6,764 shares of the transportation company's stock worth $504,000 after purchasing an additional 204 shares during the last quarter. 72.20% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on CP. ATB Cormark Capital Markets lowered Canadian Pacific Kansas City from a "strong-buy" rating to a "moderate buy" rating in a report on Friday, April 17th. Barclays set a $99.00 price objective on shares of Canadian Pacific Kansas City and gave the company an "overweight" rating in a research report on Thursday, April 30th. Susquehanna reiterated a "positive" rating and issued a $104.00 target price on shares of Canadian Pacific Kansas City in a research note on Friday. Citigroup increased their price target 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. Finally, Sanford C. Bernstein raised their price target on shares of Canadian Pacific Kansas City from $85.41 to $90.00 and gave the company a "market perform" rating in a report on Tuesday, March 31st. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat, Canadian Pacific Kansas City presently has a consensus rating of "Moderate Buy" and an average target price of $98.63.

Canadian Pacific Kansas City Stock Performance

Shares of NYSE CP opened at $90.16 on Tuesday. The business's 50-day simple moving average is $84.58 and its 200-day simple moving average is $79.68. 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 52 week low of $68.42 and a 52 week high of $91.50. The firm has a market cap of $79.98 billion, a price-to-earnings ratio of 27.83, a P/E/G ratio of 1.92 and a beta of 1.09.

Canadian Pacific Kansas City (NYSE:CP - Get Free Report) TSE: CP last posted its earnings results on Wednesday, April 29th. The transportation company reported $0.76 earnings per share for the quarter, missing the consensus estimate 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 during the quarter, compared to analyst estimates of $2.70 billion. During the same quarter last year, the firm posted $1.06 earnings per share. The firm's revenue for the quarter was down 2.5% compared to the same quarter last year. As a group, equities research analysts expect 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 disclosed a quarterly dividend, which will be paid on Monday, July 27th. Investors of record on Friday, June 26th will be issued a dividend of $0.268 per share. The ex-dividend date of this dividend is Friday, June 26th. This represents a $1.07 annualized dividend and a dividend yield of 1.2%. This is an increase from Canadian Pacific Kansas City's previous quarterly dividend of $0.23. Canadian Pacific Kansas City's payout ratio is currently 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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