QV Investors Inc. Invests $53.67 Million in Canadian Pacific Kansas City Limited $CP

Key Points

• QV Investors bought a new position of 727,991 shares of Canadian Pacific Kansas City (NYSE:CP) in Q4, valued at about $53.67 million, which makes CP its 5th-largest holding and represents roughly 4.4% of QV's portfolio (QV owns ~0.08% of CP).
• Analysts hold a Moderate Buy consensus on CP with an average target price of $91.82 (10 Buy vs. 5 Hold), though recent notes show mixed moves—Citi and Barclays trimmed targets while Sanford Bernstein raised its target and Wall Street Zen downgraded to sell.
• CPKC missed EPS estimates last quarter (reported $0.95 vs. $0.99 expected) with revenue in line at $2.85B, and it announced a quarterly dividend of $0.228 ($0.91 annualized, ~1.2% yield); the stock trades near $78.93 with a market cap of about $70.8B and a P/E of 24.44.

QV Investors Inc. bought a new position in shares of Canadian Pacific Kansas City Limited (NYSE:CP - Free Report) TSE: CP in the 4th quarter, according to the company in its most recent disclosure with the SEC. The fund bought 727,991 shares of the transportation company's stock, valued at approximately $53,667,000. Canadian Pacific Kansas City accounts for about 4.4% of QV Investors Inc.'s holdings, making the stock its 5th largest holding. QV Investors Inc. owned 0.08% of Canadian Pacific Kansas City as of its most recent filing with the SEC.

Other institutional investors and hedge funds have also bought and sold shares of the company. Twin Peaks Wealth Advisors LLC bought a new stake in shares of Canadian Pacific Kansas City during the second quarter worth approximately $27,000. Caldwell Trust Co bought a new position in shares of Canadian Pacific Kansas City during the third quarter worth approximately $30,000. Acadian Asset Management LLC bought a new position in shares of Canadian Pacific Kansas City during the first quarter worth approximately $35,000. Cornerstone Planning Group LLC lifted its holdings in Canadian Pacific Kansas City by 205.5% during the 3rd quarter. Cornerstone Planning Group LLC now owns 498 shares of the transportation company's stock worth $36,000 after purchasing an additional 335 shares during the last quarter. Finally, Wealth Watch Advisors INC bought a new stake in Canadian Pacific Kansas City in the 3rd quarter valued at $36,000. Institutional investors and hedge funds own 72.20% of the company's stock.

Analyst Ratings Changes

A number of research analysts have commented on CP shares. Citigroup decreased their price objective on Canadian Pacific Kansas City from $88.00 to $86.00 and set a "buy" rating on the stock in a report on Friday, January 30th. Wall Street Zen downgraded Canadian Pacific Kansas City from a "hold" rating to a "sell" rating in a report on Tuesday, March 3rd. Barclays reduced their target price on shares of Canadian Pacific Kansas City from $93.00 to $91.00 and set an "overweight" rating for the company in a research report on Friday, March 27th. Sanford C. Bernstein raised their price target on shares of Canadian Pacific Kansas City from $85.41 to $90.00 and gave the stock a "market perform" rating in a research report on Tuesday, March 31st. Finally, Scotiabank reiterated an "outperform" rating on shares of Canadian Pacific Kansas City in a research note on Wednesday, January 21st. Ten investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $91.82.

Canadian Pacific Kansas City Trading Down 0.0%

Shares of NYSE:CP opened at $78.93 on Friday. The business's 50 day simple moving average is $81.18 and its 200 day simple moving average is $76.14. Canadian Pacific Kansas City Limited has a 1 year low of $66.49 and a 1 year high of $89.42. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.49 and a quick ratio of 0.41. The company has a market capitalization of $70.82 billion, a P/E ratio of 24.44, a P/E/G ratio of 1.68 and a beta of 1.07.

Canadian Pacific Kansas City (NYSE:CP - Get Free Report) TSE: CP last announced its quarterly earnings data on Wednesday, January 28th. The transportation company reported $0.95 earnings per share for the quarter, missing the consensus estimate of $0.99 by ($0.04). The company had revenue of $2.85 billion during the quarter, compared to analyst estimates of $2.85 billion. Canadian Pacific Kansas City had a net margin of 27.49% and a return on equity of 8.91%. Canadian Pacific Kansas City's revenue was up 1.3% on a year-over-year basis. During the same period in the prior year, the firm earned $1.29 earnings per share. On average, research analysts anticipate that Canadian Pacific Kansas City Limited will post 3.42 EPS for the current fiscal year.

Canadian Pacific Kansas City Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, April 27th. Investors of record on Friday, March 27th will be given a dividend of $0.228 per share. The ex-dividend date of this dividend is Friday, March 27th. This represents a $0.91 annualized dividend and a yield of 1.2%. Canadian Pacific Kansas City's dividend payout ratio is currently 20.74%.

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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