Norges Bank Takes $978.56 Million Position in Canadian Pacific Kansas City Limited $CP

Key Points

• Norges Bank disclosed a new fourth-quarter position in Canadian Pacific Kansas City, buying 13.29 million shares valued at about $978.6 million and ending with roughly 1.48% ownership.
• Canadian Pacific Kansas City reported quarterly EPS of $0.76, missing estimates, while revenue of $2.66 billion also came in below expectations and declined 2.5% year over year.
• The company raised its quarterly dividend to $0.268 per share from $0.23, and analysts currently rate the stock a Moderate Buy with a consensus price target of $95.89.

Norges Bank purchased a new stake in shares of Canadian Pacific Kansas City Limited (NYSE:CP - Free Report) TSE: CP in the fourth quarter, according to its most recent 13F filing with the SEC. The fund purchased 13,290,852 shares of the transportation company's stock, valued at approximately $978,558,000. Norges Bank owned approximately 1.48% of Canadian Pacific Kansas City at the end of the most recent reporting period.

A number of other hedge funds have also recently made changes to their positions in CP. Intech Investment Management LLC grew its position in shares of Canadian Pacific Kansas City by 16.0% during the 1st quarter. Intech Investment Management LLC now owns 21,276 shares of the transportation company's stock valued at $1,493,000 after purchasing an additional 2,940 shares in the last quarter. Acadian Asset Management LLC purchased a new position in shares of Canadian Pacific Kansas City during the 1st quarter valued at $35,000. Sivia Capital Partners LLC purchased a new position in shares of Canadian Pacific Kansas City during the 2nd quarter valued at $206,000. Prudential Financial Inc. grew its position in shares of Canadian Pacific Kansas City by 8.7% during the 2nd quarter. Prudential Financial Inc. now owns 5,183 shares of the transportation company's stock valued at $411,000 after purchasing an additional 415 shares in the last quarter. Finally, EverSource Wealth Advisors LLC grew its position in shares of Canadian Pacific Kansas City by 39.3% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,307 shares of the transportation company's stock valued at $104,000 after purchasing an additional 369 shares in the last quarter. 72.20% of the stock is currently owned by hedge funds and other institutional investors.

Canadian Pacific Kansas City Price Performance

Shares of NYSE CP opened at $89.26 on Friday. Canadian Pacific Kansas City Limited has a 1 year low of $68.42 and a 1 year high of $91.46. The company has a debt-to-equity ratio of 0.46, a current ratio of 0.67 and a quick ratio of 0.57. The company's 50-day moving average is $83.32 and its 200 day moving average is $78.84. The stock has a market capitalization of $79.24 billion, a P/E ratio of 27.55, a P/E/G ratio of 1.91 and a beta of 1.09.

Canadian Pacific Kansas City (NYSE:CP - Get Free Report) TSE: CP last announced its quarterly earnings results on Wednesday, April 29th. The transportation company reported $0.76 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.78 by ($0.02). The company had revenue of $2.66 billion for the quarter, compared to analysts' expectations of $2.70 billion. Canadian Pacific Kansas City had a net margin of 27.20% and a return on equity of 8.86%. Canadian Pacific Kansas City's quarterly revenue was down 2.5% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.06 EPS. On average, sell-side analysts expect that Canadian Pacific Kansas City Limited will post 3.76 earnings per share for the current year.

Canadian Pacific Kansas City Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, July 27th. Shareholders of record on Friday, June 26th will be issued a $0.268 dividend. This represents a $1.07 dividend on an annualized basis and a yield of 1.2%. This is a boost from Canadian Pacific Kansas City's previous quarterly dividend of $0.23. The ex-dividend date is Friday, June 26th. Canadian Pacific Kansas City's dividend payout ratio is currently 20.68%.

Analyst Ratings Changes

A number of analysts have recently issued reports on the stock. Sanford C. Bernstein lifted their price objective on shares of Canadian Pacific Kansas City from $85.41 to $90.00 and gave the stock a "market perform" rating in a report on Tuesday, March 31st. Citigroup lifted their price objective on shares of Canadian Pacific Kansas City from $93.00 to $97.00 and gave the stock a "buy" rating in a report on Thursday, April 30th. Scotiabank downgraded shares of Canadian Pacific Kansas City from a "strong-buy" rating to a "hold" rating in a report on Thursday, April 9th. Wall Street Zen raised shares of Canadian Pacific Kansas City from a "sell" rating to a "hold" rating in a research note on Saturday. Finally, Royal Bank Of Canada lowered their price target on shares of Canadian Pacific Kansas City from $128.00 to $127.00 and set an "outperform" rating for the company in a research note on Thursday, April 30th. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $95.89.

Canadian Pacific Kansas City 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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