Marathon Asset Management Ltd Trims Holdings in Canadian Pacific Kansas City Limited $CP

Key Points

• Marathon Asset Management reduced its stake in Canadian Pacific Kansas City by 5.9% in the fourth quarter, selling 33,002 shares and leaving it with 528,966 shares valued at about $39.1 million.
• Canadian Pacific Kansas City’s latest quarterly results came in slightly below expectations, with EPS of $0.76 versus $0.78 expected and revenue of $2.66 billion versus $2.70 billion forecast.
• The company raised its quarterly dividend to $0.268 per share, up from $0.23, bringing the annualized payout to $1.07 and the dividend yield to about 1.2%.

Marathon Asset Management Ltd trimmed its stake in Canadian Pacific Kansas City Limited (NYSE:CP - Free Report) TSE: CP by 5.9% during the fourth quarter, according to its most recent 13F filing with the SEC. The firm owned 528,966 shares of the transportation company's stock after selling 33,002 shares during the period. Canadian Pacific Kansas City comprises 1.5% of Marathon Asset Management Ltd's investment portfolio, making the stock its 26th biggest holding. Marathon Asset Management Ltd owned approximately 0.06% of Canadian Pacific Kansas City worth $39,079,000 as of its most recent filing with the SEC.

A number of other institutional investors and hedge funds have also made changes to their positions in the stock. Vanguard Group Inc. raised its stake in shares of 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 acquiring an additional 510,633 shares during the period. Invesco Ltd. raised its stake in shares of Canadian Pacific Kansas City by 18.3% in the 3rd quarter. Invesco Ltd. now owns 23,128,485 shares of the transportation company's stock valued at $1,722,841,000 after acquiring an additional 3,585,030 shares during the period. CIBC Asset Management Inc raised its stake in shares of Canadian Pacific Kansas City by 9.1% in the 3rd quarter. CIBC Asset Management Inc now owns 8,352,370 shares of the transportation company's stock valued at $623,937,000 after acquiring an additional 698,705 shares during the period. Legal & General Group Plc grew its holdings in shares of Canadian Pacific Kansas City by 6.1% in the third quarter. Legal & General Group Plc now owns 7,193,408 shares of the transportation company's stock valued at $535,836,000 after purchasing an additional 413,042 shares in the last quarter. Finally, Fiera Capital Corp grew its holdings in shares of Canadian Pacific Kansas City by 3.1% in the third quarter. Fiera Capital Corp now owns 5,864,045 shares of the transportation company's stock valued at $436,581,000 after purchasing an additional 178,661 shares in the last quarter. 72.20% of the stock is owned by hedge funds and other institutional investors.

Canadian Pacific Kansas City Trading Down 0.1%

Shares of CP stock opened at $86.13 on Wednesday. The company has a debt-to-equity ratio of 0.46, a quick ratio of 0.57 and a current ratio of 0.67. Canadian Pacific Kansas City Limited has a fifty-two week low of $68.42 and a fifty-two week high of $89.42. The stock has a market capitalization of $76.46 billion, a P/E ratio of 26.58, a price-to-earnings-growth ratio of 1.85 and a beta of 1.09. The company has a 50 day moving average price of $82.33 and a 200 day moving average price of $77.92.

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 analysts' consensus estimates of $0.78 by ($0.02). Canadian Pacific Kansas City had a net margin of 27.20% and a return on equity of 8.86%. The firm had revenue of $2.66 billion during the quarter, compared to analysts' expectations of $2.70 billion. During the same period in the prior year, the company posted $1.06 earnings per share. The company's revenue for the quarter was down 2.5% on a year-over-year basis. 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 disclosed a quarterly dividend, which will be paid on Monday, July 27th. Shareholders of record on Friday, June 26th will be given a $0.268 dividend. The ex-dividend date of this dividend is Friday, June 26th. This represents a $1.07 dividend on an annualized basis 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 payout ratio is currently 20.68%.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on CP shares. ATB Cormark Capital Markets cut shares of Canadian Pacific Kansas City from a "strong-buy" rating to a "moderate buy" rating in a report on Friday, April 17th. Barclays set a $99.00 price objective on shares of Canadian Pacific Kansas City and gave the company an "overweight" rating in a report on Thursday, April 30th. Wall Street Zen cut shares of Canadian Pacific Kansas City from a "hold" rating to a "sell" rating in a report on Sunday. Citigroup lifted their price objective on shares of Canadian Pacific Kansas City from $93.00 to $97.00 and gave the company a "buy" rating in a report on Thursday, April 30th. Finally, Scotiabank cut shares of Canadian Pacific Kansas City from a "strong-buy" rating to a "hold" rating in a report on Thursday, April 9th. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $95.89.

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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