Sustainable Growth Advisers LP Sells 1,076,187 Shares of Canadian Pacific Kansas City Limited $CP

Key Points

• Sustainable Growth Advisers LP cut its Canadian Pacific Kansas City stake by 14.1% in the fourth quarter, selling 1,076,187 shares and leaving it with 6,564,219 shares valued at about $483.3 million.
• Canadian Pacific Kansas City recently raised its quarterly dividend to $0.268 per share from $0.23, implying an annualized dividend of $1.07 and a yield of about 1.2%.
• The company reported Q1 earnings below expectations, with EPS of $0.76 versus the $0.78 estimate and revenue of $2.66 billion versus $2.70 billion expected; analysts still rate the stock Moderate Buy with an average price target of $96.50.

Sustainable Growth Advisers LP decreased its stake in shares of Canadian Pacific Kansas City Limited (NYSE:CP - Free Report) TSE: CP by 14.1% in the 4th quarter, according to its most recent 13F filing with the SEC. The firm owned 6,564,219 shares of the transportation company's stock after selling 1,076,187 shares during the period. Canadian Pacific Kansas City accounts for about 3.4% of Sustainable Growth Advisers LP's portfolio, making the stock its 12th largest holding. Sustainable Growth Advisers LP owned 0.73% of Canadian Pacific Kansas City worth $483,323,000 as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors have also modified their holdings of CP. Norges Bank bought a new stake in shares of Canadian Pacific Kansas City during the 4th quarter worth about $978,558,000. Invesco Ltd. boosted its holdings in shares of Canadian Pacific Kansas City by 18.3% during the 3rd quarter. Invesco Ltd. now owns 23,128,485 shares of the transportation company's stock worth $1,722,841,000 after buying an additional 3,585,030 shares during the period. BNP Paribas Financial Markets boosted its holdings in shares of Canadian Pacific Kansas City by 206.0% during the 4th quarter. BNP Paribas Financial Markets now owns 2,830,409 shares of the transportation company's stock worth $208,403,000 after buying an additional 1,905,302 shares during the period. Lazard Asset Management LLC boosted its holdings in shares of Canadian Pacific Kansas City by 281.2% during the 3rd quarter. Lazard Asset Management LLC now owns 1,379,393 shares of the transportation company's stock worth $102,711,000 after buying an additional 1,017,576 shares during the period. Finally, Northwestern Mutual Wealth Management Co. boosted its holdings in shares of Canadian Pacific Kansas City by 1,840.0% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,072,760 shares of the transportation company's stock worth $78,987,000 after buying an additional 1,017,464 shares during the period. Institutional investors own 72.20% of the company's stock.

Canadian Pacific Kansas City Price Performance

CP stock opened at $88.69 on Tuesday. The company has a quick ratio of 0.57, a current ratio of 0.67 and a debt-to-equity ratio of 0.46. Canadian Pacific Kansas City Limited has a 12 month low of $68.42 and a 12 month high of $91.46. The firm has a market cap of $78.68 billion, a P/E ratio of 27.37, a P/E/G ratio of 1.91 and a beta of 1.09. The company's 50-day moving average price is $83.52 and its two-hundred day moving average price is $79.02.

Canadian Pacific Kansas City (NYSE:CP - Get Free Report) TSE: CP last released its earnings results on Wednesday, April 29th. The transportation company reported $0.76 EPS for the quarter, missing the consensus estimate 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 the consensus estimate of $2.70 billion. During the same period in the prior year, the business earned $1.06 earnings per share. Canadian Pacific Kansas City's quarterly revenue was down 2.5% compared to the same quarter last year. On average, analysts anticipate that Canadian Pacific Kansas City Limited will post 3.76 earnings per share for the current fiscal year.

Canadian Pacific Kansas City Increases Dividend

The company also recently announced 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. The ex-dividend date of this dividend is Friday, June 26th. This represents a $1.07 annualized dividend and a yield of 1.2%. This is an increase from Canadian Pacific Kansas City's previous quarterly dividend of $0.23. Canadian Pacific Kansas City's payout ratio is 20.68%.

Analyst Ratings Changes

A number of equities analysts recently commented on CP shares. 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. Wall Street Zen raised shares of Canadian Pacific Kansas City from a "sell" rating to a "hold" rating in a research report on Saturday. ATB Cormark Capital Markets lowered shares of Canadian Pacific Kansas City from a "strong-buy" rating to a "moderate buy" rating in a research report on Friday, April 17th. 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 on the stock in a research report on Thursday, April 30th. Finally, Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Canadian Pacific Kansas City in a research report on Friday. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Canadian Pacific Kansas City has a consensus rating of "Moderate Buy" and an average price target of $96.50.

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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