Goldman Sachs Group Inc. Acquires 3,842,866 Shares of Canadian Pacific Kansas City Limited (NYSE:CP)

Key Points

• Goldman Sachs Group Inc. increased its stake in Canadian Pacific Kansas City Limited by 70.4%, acquiring an additional 3,842,866 shares to reach a total of 9,299,753 shares, valued at approximately $652.9 million.
• Canadian Pacific Kansas City recently reported earnings per share (EPS) of $0.81, missing consensus estimates of $0.82, with revenues of $2.72 billion, reflecting a 2.7% year-over-year increase.
• The company announced a quarterly dividend increase to $0.1651, which will be paid on October 27th, marking an annualized dividend of $0.66 and a yield of 0.9%.

Goldman Sachs Group Inc. raised its position in Canadian Pacific Kansas City Limited (NYSE:CP - Free Report) TSE: CP by 70.4% during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 9,299,753 shares of the transportation company's stock after buying an additional 3,842,866 shares during the quarter. Goldman Sachs Group Inc. owned about 1.00% of Canadian Pacific Kansas City worth $652,936,000 at the end of the most recent quarter.

A number of other institutional investors have also added to or reduced their stakes in CP. Bank of New York Mellon Corp increased its holdings in shares of Canadian Pacific Kansas City by 3.0% during the first quarter. Bank of New York Mellon Corp now owns 1,065,476 shares of the transportation company's stock valued at $74,807,000 after acquiring an additional 31,508 shares in the last quarter. Concurrent Investment Advisors LLC raised its holdings in shares of Canadian Pacific Kansas City by 70.0% during the 1st quarter. Concurrent Investment Advisors LLC now owns 5,990 shares of the transportation company's stock valued at $421,000 after buying an additional 2,467 shares in the last quarter. CX Institutional purchased a new position in Canadian Pacific Kansas City in the 1st quarter worth approximately $61,000. Janney Montgomery Scott LLC increased its stake in shares of Canadian Pacific Kansas City by 28.8% during the first quarter. Janney Montgomery Scott LLC now owns 101,211 shares of the transportation company's stock valued at $7,106,000 after buying an additional 22,606 shares during the period. Finally, Assenagon Asset Management S.A. boosted its position in shares of Canadian Pacific Kansas City by 1.0% during the first quarter. Assenagon Asset Management S.A. now owns 28,676 shares of the transportation company's stock valued at $2,012,000 after purchasing an additional 290 shares in the last quarter. 72.20% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the company. The Goldman Sachs Group restated a "neutral" rating and issued a $91.00 price target on shares of Canadian Pacific Kansas City in a research note on Monday, June 2nd. Evercore ISI dropped their price target on Canadian Pacific Kansas City from $89.00 to $88.00 and set an "outperform" rating for the company in a research note on Thursday, May 1st. Bank of America raised their price objective on Canadian Pacific Kansas City from $82.00 to $90.00 and gave the company a "buy" rating in a research note on Friday, May 16th. Wall Street Zen downgraded Canadian Pacific Kansas City from a "hold" rating to a "sell" rating in a report on Saturday, June 14th. Finally, Scotiabank restated an "outperform" rating on shares of Canadian Pacific Kansas City in a report on Thursday, July 10th. Two analysts have rated the stock with a sell rating, four have assigned a hold rating, eleven have given a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $92.30.

Canadian Pacific Kansas City Price Performance

Shares of NYSE:CP traded down $0.81 during midday trading on Monday, reaching $74.21. 775,270 shares of the company's stock were exchanged, compared to its average volume of 3,234,104. The company's 50 day simple moving average is $79.18 and its two-hundred day simple moving average is $76.89. The firm has a market capitalization of $67.80 billion, a PE ratio of 23.13, a price-to-earnings-growth ratio of 2.11 and a beta of 1.06. Canadian Pacific Kansas City Limited has a 12 month low of $66.49 and a 12 month high of $87.72. The company has a debt-to-equity ratio of 0.45, a quick ratio of 0.81 and a current ratio of 0.93.

Canadian Pacific Kansas City (NYSE:CP - Get Free Report) TSE: CP last posted its quarterly earnings data on Wednesday, July 30th. The transportation company reported $0.81 earnings per share for the quarter, missing the consensus estimate of $0.82 by ($0.01). The company had revenue of $2.72 billion during the quarter, compared to analyst estimates of $2.76 billion. Canadian Pacific Kansas City had a net margin of 28.05% and a return on equity of 8.69%. The company's revenue was up 2.7% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.05 EPS. Equities research analysts expect that Canadian Pacific Kansas City Limited will post 3.42 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, October 27th. Stockholders of record on Friday, September 26th will be issued a $0.1651 dividend. This represents a $0.66 dividend on an annualized basis and a dividend yield of 0.9%. This is a boost from Canadian Pacific Kansas City's previous quarterly dividend of $0.16. The ex-dividend date is Friday, September 26th. Canadian Pacific Kansas City's dividend payout ratio is 20.25%.

Canadian Pacific Kansas City Company Profile

Canadian Pacific Kansas City Limited, together with its subsidiaries, owns and operates a transcontinental freight railway in Canada, the United States, and Mexico. The company transports bulk commodities, including grain, coal, potash, fertilizers, and sulphur; merchandise freight, such as forest products, energy, chemicals and plastics, metals, minerals, consumer products, and automotive; and intermodal traffic comprising retail goods in overseas containers.