Osterweis Capital Management Inc. Makes New $26.41 Million Investment in Canadian Pacific Kansas City Limited $CP

Key Points

• Osterweis Capital Management acquired 304,752 shares of Canadian Pacific Kansas City worth approximately $26.41 million during the second quarter. Institutional investors own 72.2% of the company, with several major funds also establishing or expanding positions.
• CPKC reported quarterly revenue of $2.93 billion, up 12.6% year over year, and earnings of $0.92 per share, beating analysts’ $0.89 estimate. The company declared a quarterly dividend of $0.268 per share, representing a 1.1% yield.
• Analysts maintain a “Moderate Buy” consensus rating, with 11 Buy, one Strong Buy and three Hold ratings. The average price target is $108.60, above the stock’s reported price of $94.69.

Osterweis Capital Management Inc. acquired a new position in shares of Canadian Pacific Kansas City Limited (NYSE:CP - Free Report) TSE: CP during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm acquired 304,752 shares of the transportation company's stock, valued at approximately $26,407,000.

A number of other institutional investors and hedge funds have also modified their holdings of CP. Norges Bank acquired a new position in shares of Canadian Pacific Kansas City in the fourth quarter valued at $978,558,000. Connor Clark & Lunn Investment Management Ltd. acquired a new stake in Canadian Pacific Kansas City during the second quarter worth $802,983,000. The Manufacturers Life Insurance Company acquired a new stake in Canadian Pacific Kansas City during the second quarter worth $657,672,000. Legal & General Group Plc bought a new stake in Canadian Pacific Kansas City in the 2nd quarter valued at $604,797,000. Finally, Janus Henderson Group PLC increased its holdings in Canadian Pacific Kansas City by 586.1% in the 4th quarter. Janus Henderson Group PLC now owns 6,147,835 shares of the transportation company's stock valued at $452,781,000 after buying an additional 5,251,755 shares during the period. 72.20% of the stock is currently owned by institutional investors.

Canadian Pacific Kansas City Stock Performance

NYSE CP opened at $94.69 on Tuesday. Canadian Pacific Kansas City Limited has a 1-year low of $68.42 and a 1-year high of $96.90. The company has a 50 day moving average of $90.32 and a 200-day moving average of $86.36. The company has a current ratio of 0.59, a quick ratio of 0.50 and a debt-to-equity ratio of 0.47. The firm has a market cap of $83.17 billion, a price-to-earnings ratio of 30.45, a PEG ratio of 1.89 and a beta of 1.10.

Canadian Pacific Kansas City (NYSE:CP - Get Free Report) TSE: CP last released its quarterly earnings results on Wednesday, July 29th. The transportation company reported $0.92 EPS for the quarter, topping analysts' consensus estimates of $0.89 by $0.03. Canadian Pacific Kansas City had a return on equity of 9.02% and a net margin of 25.02%.The business had revenue of $2.93 billion for the quarter, compared to analyst estimates of $2.89 billion. During the same period in the prior year, the company earned $1.12 EPS. Canadian Pacific Kansas City's revenue for the quarter was up 12.6% on a year-over-year basis. On average, equities analysts forecast that Canadian Pacific Kansas City Limited will post 3.7 earnings per share for the current fiscal year.

Canadian Pacific Kansas City Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, October 26th. Stockholders of record on Friday, September 25th will be issued a dividend of $0.268 per share. This represents a $1.07 annualized dividend and a dividend yield of 1.1%. The ex-dividend date is Friday, September 25th. Canadian Pacific Kansas City's dividend payout ratio is presently 25.08%.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on CP shares. Wells Fargo & Company raised their price objective on shares of Canadian Pacific Kansas City from $90.00 to $100.00 and gave the stock an "overweight" rating in a report on Wednesday, July 8th. Citigroup upped their target price on shares of Canadian Pacific Kansas City from $106.00 to $109.00 and gave the company a "buy" rating in a research note on Thursday, July 30th. Evercore set a $99.00 price target on shares of Canadian Pacific Kansas City in a research report on Thursday, July 30th. Argus set a $105.00 price target on shares of Canadian Pacific Kansas City in a research note on Tuesday, June 16th. Finally, Barclays set a $102.00 price objective on Canadian Pacific Kansas City and gave the company an "overweight" rating in a report on Thursday, June 25th. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $108.60.

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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