Pershing Square Capital Management L.P. Sells 77,855 Shares of Canadian Pacific Kansas City Limited $CP

Key Points

• Pershing Square Capital Management has reduced its holdings in Canadian Pacific Kansas City Limited by 0.5%, owning approximately 14.8 million shares valued at $1.04 billion.
• The transportation company reported earnings per share (EPS) of $0.81 for the last quarter, slightly missing analysts' expectations, with revenues of $2.72 billion, a 2.7% increase year-over-year.
• Canadian Pacific Kansas City has announced an increase in its quarterly dividend to $0.1651 per share, representing an annualized dividend yield of 0.9%.

Pershing Square Capital Management L.P. lessened its holdings in Canadian Pacific Kansas City Limited (NYSE:CP - Free Report) TSE: CP by 0.5% in the 1st quarter, according to its most recent filing with the SEC. The firm owned 14,799,796 shares of the transportation company's stock after selling 77,855 shares during the period. Canadian Pacific Kansas City comprises 8.7% of Pershing Square Capital Management L.P.'s holdings, making the stock its 6th biggest position. Pershing Square Capital Management L.P. owned 1.59% of Canadian Pacific Kansas City worth $1,039,094,000 as of its most recent SEC filing.

Other large investors have also recently made changes to their positions in the company. Invesco Ltd. increased 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 valued at $1,192,471,000 after acquiring an additional 6,337,312 shares in the last quarter. Goldman Sachs Group Inc. raised its position in Canadian Pacific Kansas City by 70.4% during the 1st quarter. Goldman Sachs Group Inc. now owns 9,299,753 shares of the transportation company's stock worth $652,936,000 after buying an additional 3,842,866 shares during the last quarter. Mitsubishi UFJ Trust & Banking Corp acquired a new position in Canadian Pacific Kansas City during the first quarter valued at $126,928,000. Causeway Capital Management LLC boosted its stake in shares of Canadian Pacific Kansas City by 11.5% in the first quarter. Causeway Capital Management LLC now owns 17,208,788 shares of the transportation company's stock worth $1,207,605,000 after buying an additional 1,778,984 shares during the last quarter. Finally, Allspring Global Investments Holdings LLC boosted its position in Canadian Pacific Kansas City by 44.2% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 4,950,353 shares of the transportation company's stock worth $351,723,000 after purchasing an additional 1,516,684 shares in the last quarter. 72.20% of the stock is owned by institutional investors.

Canadian Pacific Kansas City Stock Performance

Canadian Pacific Kansas City stock traded up $1.19 during midday trading on Thursday, hitting $75.69. 2,398,501 shares of the company's stock were exchanged, compared to its average volume of 3,186,074. The company has a debt-to-equity ratio of 0.45, a quick ratio of 0.81 and a current ratio of 0.93. The stock has a market cap of $68.64 billion, a price-to-earnings ratio of 23.58, a price-to-earnings-growth ratio of 2.09 and a beta of 1.06. Canadian Pacific Kansas City Limited has a 12-month low of $66.49 and a 12-month high of $87.72. The firm's 50 day simple moving average is $76.74 and its 200 day simple moving average is $76.43.

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

Canadian Pacific Kansas City Increases Dividend

The business 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 an increase 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 presently 20.56%.

Analysts Set New Price Targets

CP has been the topic of several research analyst reports. Susquehanna reissued a "positive" rating and issued a $94.00 price objective (up from $90.00) on shares of Canadian Pacific Kansas City in a report on Tuesday, June 24th. Wall Street Zen raised Canadian Pacific Kansas City from a "sell" rating to a "hold" rating in a research note on Saturday, August 23rd. Scotiabank restated an "outperform" rating on shares of Canadian Pacific Kansas City in a report on Thursday, July 10th. Bank of America raised their price target on Canadian Pacific Kansas City from $82.00 to $90.00 and gave the stock a "buy" rating in a research report on Friday, May 16th. Finally, National Bank Financial upgraded shares of Canadian Pacific Kansas City from a "hold" rating to a "strong-buy" rating in a report on Wednesday, July 30th. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, four have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, Canadian Pacific Kansas City currently has a consensus rating of "Moderate Buy" and an average target price of $92.30.

Canadian Pacific Kansas City 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.