Geode Capital Management LLC Buys 461,724 Shares of Canadian Pacific Kansas City Limited $CP

Key Points

• Geode Capital Management increased its stake in Canadian Pacific Kansas City by 5.5% in the fourth quarter, buying 461,724 additional shares and bringing its total holding to 8,821,358 shares worth about $661.3 million.
• The company’s latest earnings missed analyst expectations, with quarterly EPS of $0.76 versus $0.78 expected and revenue of $2.66 billion versus $2.70 billion expected; revenue also fell 2.5% year over year.
• Canadian Pacific Kansas City raised its quarterly dividend to $0.268 per share from $0.23, and analysts currently view the stock as a Moderate Buy with a consensus price target of $95.89.

Geode Capital Management LLC raised its stake in shares of Canadian Pacific Kansas City Limited (NYSE:CP - Free Report) TSE: CP by 5.5% in the 4th quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 8,821,358 shares of the transportation company's stock after purchasing an additional 461,724 shares during the period. Geode Capital Management LLC owned 0.98% of Canadian Pacific Kansas City worth $661,339,000 at the end of the most recent quarter.

A number of other large investors have also recently bought and sold shares of CP. Invesco Ltd. grew its holdings in Canadian Pacific Kansas City by 18.3% during the 3rd quarter. Invesco Ltd. now owns 23,128,485 shares of the transportation company's stock worth $1,722,841,000 after acquiring an additional 3,585,030 shares during the period. Lazard Asset Management LLC grew its holdings in Canadian Pacific Kansas City by 281.2% during the 3rd quarter. Lazard Asset Management LLC now owns 1,379,393 shares of the transportation company's stock worth $102,711,000 after acquiring an additional 1,017,576 shares during the period. Northwestern Mutual Wealth Management Co. grew its holdings in Canadian Pacific Kansas City by 1,840.0% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,072,760 shares of the transportation company's stock worth $78,987,000 after acquiring an additional 1,017,464 shares during the period. BNP Paribas Financial Markets grew its holdings in Canadian Pacific Kansas City by 818,578.8% during the 3rd quarter. BNP Paribas Financial Markets now owns 925,107 shares of the transportation company's stock worth $68,911,000 after acquiring an additional 924,994 shares during the period. Finally, QV Investors Inc. acquired a new stake in Canadian Pacific Kansas City during the 4th quarter worth about $53,667,000. 72.20% of the stock is currently owned by institutional investors and hedge funds.

Canadian Pacific Kansas City Stock Performance

Shares of CP opened at $89.26 on Friday. The company has a debt-to-equity ratio of 0.46, a current ratio of 0.67 and a quick ratio of 0.57. The stock has a 50-day moving average of $83.32 and a 200-day moving average of $78.84. The company has a market cap of $79.24 billion, a PE ratio of 27.55, a P/E/G ratio of 1.91 and a beta of 1.09. Canadian Pacific Kansas City Limited has a one year low of $68.42 and a one year high of $91.46.

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 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 analyst estimates of $2.70 billion. Canadian Pacific Kansas City had a net margin of 27.20% and a return on equity of 8.86%. The business's quarterly revenue was down 2.5% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.06 earnings per share. On average, equities research analysts predict that Canadian Pacific Kansas City Limited will post 3.76 EPS 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 paid a $0.268 dividend. The ex-dividend date is Friday, June 26th. 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. Canadian Pacific Kansas City's dividend payout ratio (DPR) is 20.68%.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on CP. Royal Bank Of Canada decreased their price target on 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. Wall Street Zen upgraded Canadian Pacific Kansas City from a "sell" rating to a "hold" rating in a report on Saturday. National Bank Financial upgraded Canadian Pacific Kansas City from a "hold" rating to a "strong-buy" rating in a report on Wednesday, April 15th. Barclays set a $99.00 price target on Canadian Pacific Kansas City and gave the stock an "overweight" rating in a report on Thursday, April 30th. Finally, Citigroup increased their price target on Canadian Pacific Kansas City from $93.00 to $97.00 and gave the stock a "buy" rating in a report on Thursday, April 30th. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $95.89.

Canadian Pacific Kansas City 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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