Invesco Ltd. Boosts Stock Holdings in Canadian Pacific Kansas City Limited (NYSE:CP)

Key Points

• Invesco Ltd. increased its ownership in Canadian Pacific Kansas City Limited by 59.5%, owning approximately 16.98 million shares, valued at $1.19 billion.
• Despite a small earnings miss, with reported EPS of $0.81 against estimates of $0.82, Canadian Pacific's revenue grew by 2.7% year-over-year to $2.72 billion.
• The company has declared a quarterly dividend of $0.1651 per share, representing an increase from the previous dividend and indicating a 0.9% yield.

Invesco Ltd. grew its holdings in Canadian Pacific Kansas City Limited (NYSE:CP - Free Report) TSE: CP by 59.5% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 16,984,351 shares of the transportation company's stock after acquiring an additional 6,337,312 shares during the period. Invesco Ltd. owned about 1.83% of Canadian Pacific Kansas City worth $1,192,471,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors have also modified their holdings of CP. Vanguard Group Inc. grew its stake in shares of Canadian Pacific Kansas City by 1.0% during the first quarter. Vanguard Group Inc. now owns 37,142,988 shares of the transportation company's stock worth $2,606,624,000 after purchasing an additional 364,515 shares in the last quarter. TD Asset Management Inc grew its stake in shares of Canadian Pacific Kansas City by 0.5% during the first quarter. TD Asset Management Inc now owns 20,865,404 shares of the transportation company's stock worth $1,464,094,000 after purchasing an additional 104,077 shares in the last quarter. Mackenzie Financial Corp grew its stake in shares of Canadian Pacific Kansas City by 6.5% during the first quarter. Mackenzie Financial Corp now owns 16,347,804 shares of the transportation company's stock worth $1,147,220,000 after purchasing an additional 999,522 shares in the last quarter. Causeway Capital Management LLC grew its stake in shares of Canadian Pacific Kansas City by 76.5% during the fourth quarter. Causeway Capital Management LLC now owns 15,429,804 shares of the transportation company's stock worth $1,116,632,000 after purchasing an additional 6,687,770 shares in the last quarter. Finally, DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main grew its stake in shares of Canadian Pacific Kansas City by 11.3% during the fourth quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main now owns 12,433,380 shares of the transportation company's stock worth $899,805,000 after purchasing an additional 1,262,913 shares in the last quarter. Institutional investors and hedge funds own 72.20% of the company's stock.

Canadian Pacific Kansas City Stock Performance

Shares of NYSE:CP traded down $1.74 on Thursday, reaching $73.89. The company's stock had a trading volume of 2,539,573 shares, compared to its average volume of 3,533,720. The stock's 50-day moving average is $78.61 and its two-hundred day moving average is $76.78. Canadian Pacific Kansas City Limited has a 52-week low of $66.49 and a 52-week high of $87.72. The company has a debt-to-equity ratio of 0.45, a current ratio of 0.93 and a quick ratio of 0.81. The stock has a market capitalization of $67.51 billion, a P/E ratio of 23.02, a PEG ratio of 2.12 and a beta of 1.06.

Canadian Pacific Kansas City (NYSE:CP - Get Free Report) TSE: CP last announced its earnings results on Wednesday, July 30th. The transportation company reported $0.81 EPS for the quarter, missing analysts' consensus estimates of $0.82 by ($0.01). Canadian Pacific Kansas City had a net margin of 28.05% and a return on equity of 8.69%. The business had revenue of $2.72 billion during the quarter, compared to analysts' expectations of $2.76 billion. During the same period in the previous year, the company posted $1.05 earnings per share. Canadian Pacific Kansas City's quarterly revenue was up 2.7% on a year-over-year basis. As a group, sell-side analysts forecast that Canadian Pacific Kansas City Limited will post 3.42 EPS for the current year.

Canadian Pacific Kansas City Increases Dividend

The firm also recently announced 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. The ex-dividend date of this dividend 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 dividend on an annualized basis and a dividend yield of 0.9%. Canadian Pacific Kansas City's dividend payout ratio is currently 20.56%.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on CP shares. The Goldman Sachs Group reiterated a "neutral" rating and set a $91.00 target price on shares of Canadian Pacific Kansas City in a research note on Monday, June 2nd. Bank of America boosted their target price on shares of Canadian Pacific Kansas City from $82.00 to $90.00 and gave the stock a "buy" rating in a research note on Friday, May 16th. Evercore ISI lowered their target price on shares of 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. National Bank Financial upgraded shares of Canadian Pacific Kansas City from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, July 30th. Finally, Citigroup upped their price objective on shares of Canadian Pacific Kansas City from $89.00 to $94.00 and gave the company a "buy" rating in a research note on Wednesday, July 9th. Two equities research analysts have rated the stock with a sell rating, four have assigned a hold rating, eleven have assigned a buy rating and one has assigned a strong buy rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target 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.