Goldman Sachs Group Inc. Has $449.70 Million Stock Holdings in Canadian Pacific Kansas City Limited $CP

Key Points

• Goldman Sachs cut its stake in Canadian Pacific Kansas City by 49.1% in the fourth quarter, though it still held 6.1 million shares worth about $449.7 million.
• Institutional ownership remains high, with hedge funds and asset managers owning 72.20% of the stock; several firms, including Vanguard and Norges Bank, also reported significant positions.
• Canadian Pacific Kansas City raised its dividend to $0.268 per share quarterly, even as its latest earnings missed estimates slightly and revenue came in below expectations.

Goldman Sachs Group Inc. trimmed its stake in shares of Canadian Pacific Kansas City Limited (NYSE:CP - Free Report) TSE: CP by 49.1% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 6,107,605 shares of the transportation company's stock after selling 5,897,094 shares during the quarter. Goldman Sachs Group Inc. owned about 0.68% of Canadian Pacific Kansas City worth $449,703,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently modified their holdings of CP. Vanguard Group Inc. boosted its stake in Canadian Pacific Kansas City by 1.3% in the 3rd quarter. Vanguard Group Inc. now owns 38,734,456 shares of the transportation company's stock valued at $2,884,826,000 after purchasing an additional 510,633 shares during the period. Invesco Ltd. increased its position in Canadian Pacific Kansas City by 18.3% during the third 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. Norges Bank acquired a new stake in Canadian Pacific Kansas City in the 4th quarter worth about $978,558,000. Geode Capital Management LLC boosted its holdings in Canadian Pacific Kansas City by 5.5% in the 4th quarter. Geode Capital Management LLC now owns 8,821,358 shares of the transportation company's stock valued at $661,339,000 after purchasing an additional 461,724 shares during the period. Finally, Legal & General Group Plc boosted its holdings in Canadian Pacific Kansas City by 1.8% in the 4th quarter. Legal & General Group Plc now owns 7,324,191 shares of the transportation company's stock valued at $539,819,000 after purchasing an additional 130,783 shares during the period. 72.20% of the stock is currently owned by institutional investors and hedge funds.

Canadian Pacific Kansas City Stock Performance

NYSE CP opened at $89.44 on Friday. The firm's 50 day simple moving average is $84.16 and its 200 day simple moving average is $79.40. The firm has a market capitalization of $79.34 billion, a price-to-earnings ratio of 27.60, a P/E/G ratio of 1.91 and a beta of 1.09. The company has a current ratio of 0.67, a quick ratio of 0.57 and a debt-to-equity ratio of 0.46. Canadian Pacific Kansas City Limited has a 1 year low of $68.42 and a 1 year high of $91.50.

Canadian Pacific Kansas City (NYSE:CP - Get Free Report) TSE: CP last announced its quarterly earnings data 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 for 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 firm's revenue for the quarter was down 2.5% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.06 earnings per share. As a group, 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 firm also recently disclosed a quarterly dividend, which will be paid on Monday, July 27th. Investors of record on Friday, June 26th will be given a dividend of $0.268 per share. The ex-dividend date 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 dividend payout ratio is currently 20.68%.

Wall Street Analyst Weigh In

Several research analysts have recently commented on the stock. Barclays set a $99.00 target price on shares of Canadian Pacific Kansas City and gave the stock an "overweight" rating in a report on Thursday, April 30th. Sanford C. Bernstein increased their price target on 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. ATB Cormark Capital Markets lowered Canadian Pacific Kansas City from a "strong-buy" rating to a "moderate buy" rating in a research note on Friday, April 17th. Wall Street Zen raised Canadian Pacific Kansas City from a "sell" rating to a "hold" rating in a report on Saturday, May 30th. Finally, Citigroup upped their target price on Canadian Pacific Kansas City from $93.00 to $97.00 and gave the company a "buy" rating in a research report on Thursday, April 30th. One investment 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 company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $96.50.

Canadian Pacific Kansas City Company 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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