Goldman Sachs Group Inc. Raises Holdings in Canadian Pacific Kansas City Limited $CP

Key Points

• Goldman Sachs Group Inc. increased its stake in Canadian Pacific Kansas City Limited by 70.4%, now owning nearly 9.3 million shares valued at approximately $652.9 million.
• Several hedge funds, including Vanguard and Invesco, have also raised their investments in the company, contributing to 72.20% of its stock being owned by institutional investors.
• The company announced an increase in its quarterly dividend, now paying $0.1651 per share, resulting in an annualized yield of 0.9%.

Goldman Sachs Group Inc. increased its position in shares of Canadian Pacific Kansas City Limited (NYSE:CP - Free Report) TSE: CP by 70.4% in the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 9,299,753 shares of the transportation company's stock after purchasing an additional 3,842,866 shares during the quarter. Goldman Sachs Group Inc. owned 1.01% of Canadian Pacific Kansas City worth $652,936,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently modified their holdings of CP. Invesco Ltd. lifted its holdings in shares of Canadian Pacific Kansas City by 59.5% during the first quarter. Invesco Ltd. now owns 16,984,351 shares of the transportation company's stock worth $1,192,471,000 after purchasing an additional 6,337,312 shares during the period. Mitsubishi UFJ Trust & Banking Corp purchased a new position in Canadian Pacific Kansas City during the first quarter valued at approximately $126,928,000. Causeway Capital Management LLC raised its position in Canadian Pacific Kansas City by 11.5% during the first quarter. Causeway Capital Management LLC now owns 17,208,788 shares of the transportation company's stock valued at $1,207,605,000 after acquiring an additional 1,778,984 shares in the last quarter. Allspring Global Investments Holdings LLC raised its position in Canadian Pacific Kansas City by 44.2% during the first quarter. Allspring Global Investments Holdings LLC now owns 4,950,353 shares of the transportation company's stock valued at $351,723,000 after acquiring an additional 1,516,684 shares in the last quarter. Finally, Canada Pension Plan Investment Board raised its position in Canadian Pacific Kansas City by 47.7% during the first quarter. Canada Pension Plan Investment Board now owns 4,541,610 shares of the transportation company's stock valued at $318,775,000 after acquiring an additional 1,465,689 shares in the last quarter. Institutional investors and hedge funds own 72.20% of the company's stock.

Canadian Pacific Kansas City Price Performance

Shares of Canadian Pacific Kansas City stock traded down $0.57 on Friday, reaching $75.14. The company's stock had a trading volume of 1,571,004 shares, compared to its average volume of 2,658,295. The company has a market capitalization of $68.14 billion, a P/E ratio of 23.41, a PEG ratio of 2.12 and a beta of 1.06. Canadian Pacific Kansas City Limited has a 52-week low of $66.49 and a 52-week high of $87.72. The stock has a 50-day moving average price of $76.51 and a 200-day moving average price of $76.40. The company has a quick ratio of 0.81, a current ratio of 0.93 and a debt-to-equity ratio of 0.45.

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 EPS for the quarter, missing analysts' consensus estimates of $0.82 by ($0.01). The business had revenue of $2.72 billion during the quarter, compared to analysts' expectations of $2.76 billion. Canadian Pacific Kansas City had a net margin of 28.05% and a return on equity of 8.69%. The firm's quarterly revenue was up 2.7% compared to the same quarter last year. During the same quarter last year, the firm earned $1.05 earnings per share. Analysts expect that Canadian Pacific Kansas City Limited will post 3.42 EPS for the current year.

Canadian Pacific Kansas City Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, October 27th. Investors of record on Friday, September 26th will be given a dividend of $0.1651 per share. The ex-dividend date is Friday, September 26th. This is a positive change from Canadian Pacific Kansas City's previous quarterly dividend of $0.16. This represents a $0.66 annualized dividend and a dividend yield of 0.9%. Canadian Pacific Kansas City's dividend payout ratio (DPR) is presently 20.25%.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on CP. National Bank Financial upgraded Canadian Pacific Kansas City from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, July 30th. Scotiabank reiterated an "outperform" rating on shares of Canadian Pacific Kansas City in a research report on Thursday, July 10th. Susquehanna reiterated a "positive" rating and set a $94.00 price target (up from $90.00) on shares of Canadian Pacific Kansas City in a research report on Tuesday, June 24th. The Goldman Sachs Group reiterated a "neutral" rating and set a $91.00 price target on shares of Canadian Pacific Kansas City in a research report on Monday, June 2nd. Finally, Barclays lifted their price target on Canadian Pacific Kansas City from $87.00 to $91.00 and gave the company an "overweight" rating in a research report on Thursday, July 10th. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, four have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, Canadian Pacific Kansas City has a consensus rating of "Moderate Buy" and an average target price of $92.30.

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.