Varma Mutual Pension Insurance Co Reduces Stock Position in Canadian Pacific Kansas City Limited $CP

Key Points

• Varma Mutual Pension Insurance Co cut its stake in Canadian Pacific Kansas City by 32.3% in Q4, selling 68,800 shares and ending with 143,909 shares valued at about $10.61 million.
• Canadian Pacific Kansas City missed quarterly estimates, reporting EPS of $0.76 versus $0.78 expected and revenue of $2.66 billion versus $2.70 billion, with revenue down 2.5% year-over-year.
• The company raised its quarterly dividend to $0.268 per share (annualized $1.07, 1.3% yield), and analysts hold a consensus rating of Moderate Buy with a $95.30 target price.

Varma Mutual Pension Insurance Co lessened its stake in shares of Canadian Pacific Kansas City Limited (NYSE:CP - Free Report) TSE: CP by 32.3% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 143,909 shares of the transportation company's stock after selling 68,800 shares during the quarter. Varma Mutual Pension Insurance Co's holdings in Canadian Pacific Kansas City were worth $10,609,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Jennison Associates LLC purchased a new stake in shares of Canadian Pacific Kansas City in the fourth quarter valued at $1,983,000. GC Wealth Management RIA LLC grew its position in shares of Canadian Pacific Kansas City by 20.9% in the fourth quarter. GC Wealth Management RIA LLC now owns 15,601 shares of the transportation company's stock valued at $1,149,000 after purchasing an additional 2,694 shares during the period. Keybank National Association OH grew its position in shares of Canadian Pacific Kansas City by 2.8% in the fourth quarter. Keybank National Association OH now owns 39,749 shares of the transportation company's stock valued at $2,927,000 after purchasing an additional 1,074 shares during the period. Aprio Wealth Management LLC purchased a new stake in shares of Canadian Pacific Kansas City in the fourth quarter valued at $270,000. Finally, Coronation Fund Managers Ltd. grew its position in shares of Canadian Pacific Kansas City by 11.8% in the fourth quarter. Coronation Fund Managers Ltd. now owns 46,057 shares of the transportation company's stock valued at $3,391,000 after purchasing an additional 4,878 shares during the period. Hedge funds and other institutional investors own 72.20% of the company's stock.

Analysts Set New Price Targets

CP has been the subject of a number of recent analyst reports. Royal Bank Of Canada lowered their price objective on Canadian Pacific Kansas City from $128.00 to $127.00 and set an "outperform" rating for the company in a research report on Thursday, April 30th. Citigroup lifted their price objective on Canadian Pacific Kansas City from $93.00 to $97.00 and gave the company a "buy" rating in a research report on Thursday, April 30th. Barclays set a $99.00 price objective on Canadian Pacific Kansas City and gave the company an "overweight" rating in a research report on Thursday, April 30th. Scotiabank downgraded Canadian Pacific Kansas City from a "strong-buy" rating to a "hold" rating in a research report on Thursday, April 9th. Finally, National Bank Financial raised Canadian Pacific Kansas City from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, April 15th. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $95.30.

Canadian Pacific Kansas City Stock Performance

Shares of NYSE:CP opened at $83.50 on Wednesday. The firm has a market capitalization of $74.13 billion, a PE ratio of 25.77, a P/E/G ratio of 1.78 and a beta of 1.09. The company has a debt-to-equity ratio of 0.46, a current ratio of 0.67 and a quick ratio of 0.41. The business has a 50-day moving average of $82.44 and a two-hundred day moving average of $77.19. Canadian Pacific Kansas City Limited has a 12 month low of $68.42 and a 12 month high of $89.42.

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 EPS for the quarter, missing the consensus estimate of $0.78 by ($0.02). The firm had revenue of $2.66 billion for the quarter, compared to analyst estimates of $2.70 billion. Canadian Pacific Kansas City had a return on equity of 8.86% and a net margin of 27.20%.The business's revenue was down 2.5% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.06 earnings per share. As a group, research analysts forecast that Canadian Pacific Kansas City Limited will post 3.75 earnings per share for the current year.

Canadian Pacific Kansas City Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, July 27th. Shareholders of record on Friday, June 26th will be paid a dividend of $0.268 per share. This is a boost from Canadian Pacific Kansas City's previous quarterly dividend of $0.23. This represents a $1.07 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date is Friday, June 26th. Canadian Pacific Kansas City's payout ratio is presently 20.68%.

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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