Canadian Pacific Kansas City (NYSE:CP) Shares Cross Below 50 Day Moving Average Following Weak Earnings

Key Points

• Canadian Pacific Kansas City shares fell below their 50-day moving average after the company reported quarterly EPS of $0.91, missing the $0.94 consensus estimate. Revenue reached $2.96 billion, up 15.2% year over year, but earnings declined from $1.10 per share a year earlier.
• The company declared a quarterly dividend of C$0.27, equivalent to approximately C$1.07 annually and a 1.2% yield, with a payout ratio of 24.76%.
• Analyst sentiment remains mixed: Stephens cut its price target to $93 and Zacks downgraded the stock to “hold,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $110.31.

Shares of Canadian Pacific Kansas City Limited (NYSE:CP - Get Free Report) TSE: CP crossed below its 50-day moving average during trading on Thursday following a weaker than expected earnings announcement. The stock has a 50-day moving average of $88.86 and traded as low as $86.21. Canadian Pacific Kansas City shares last traded at $88.4780, with a volume of 5,240,673 shares traded.

The transportation company reported $0.91 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.94 by ($0.03). The business had revenue of $2.96 billion for the quarter, compared to analysts' expectations of $2.96 billion. Canadian Pacific Kansas City had a net margin of 24.14% and a return on equity of 9.22%. Canadian Pacific Kansas City's quarterly revenue was up 15.2% on a year-over-year basis. During the same period last year, the firm posted $1.10 earnings per share.

Canadian Pacific Kansas City Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, January 25th. Shareholders of record on Thursday, December 31st will be issued a C$0.27 dividend. The ex-dividend date is Thursday, December 31st. This represents a $1.07 annualized dividend and a yield of 1.2%. Canadian Pacific Kansas City's dividend payout ratio is 24.76%.

Canadian Pacific Kansas City News Roundup

Here are the key news stories impacting Canadian Pacific Kansas City this week:

• Positive Sentiment: CPKC reported strong third-quarter operating momentum, including record intermodal performance, revenue growth, and adjusted earnings of C$1.28 per share. Management said the company remains on track for a strong 2026 despite macroeconomic headwinds. CP Q3 2026 earnings call highlights
• Positive Sentiment: Canadian Pacific Kansas City renewed and expanded its rail-service agreement with Elk Valley Resources for five years. The deal increases CPKC’s share of steelmaking-coal shipments from British Columbia mines to Vancouver-area export terminals, improving longer-term volume visibility. CPKC and EVR agreement
• Positive Sentiment: The company declared a quarterly dividend of C$0.268 per share, payable January 25, 2027. The dividend supports the stock’s income appeal, though its annualized yield is relatively modest at approximately 1.2%. CPKC dividend announcement
• Neutral Sentiment: BlackRock disclosed a 5.02% ownership stake in Canadian Pacific Kansas City. The investment may provide some institutional-support signal, but the filing does not necessarily indicate an active bullish view. BlackRock ownership disclosure
• Negative Sentiment: Reported third-quarter EPS of $0.91 missed the $0.94 analyst consensus, while year-over-year EPS declined despite revenue increasing 15.2% to $2.96 billion. The earnings shortfall likely contributed to selling pressure. CP Q3 earnings estimate miss
• Negative Sentiment: Stephens lowered its price target from $96 to $93 and maintained an “equal weight” rating, limiting the perceived upside to about 5.1%. Zacks Research also downgraded CP from “strong buy” to “hold,” reinforcing a more cautious analyst view.

Analyst Upgrades and Downgrades

CP has been the topic of several research reports. Wells Fargo & Company boosted 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 research note on Wednesday, July 8th. Citizens Jmp started coverage on Canadian Pacific Kansas City in a research report on Wednesday, July 15th. They issued a "market perform" rating on the stock. Stephens cut their price target on Canadian Pacific Kansas City from $96.00 to $93.00 and set an "equal weight" rating on the stock in a research note on Thursday. Citigroup reaffirmed a "cautious" rating on shares of Canadian Pacific Kansas City in a research report on Wednesday, October 7th. Finally, Weiss Ratings upgraded Canadian Pacific Kansas City from a "buy (b-)" rating to a "buy (b)" rating in a research note on Tuesday, September 8th. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $110.31.

Hedge Funds Weigh In On Canadian Pacific Kansas City

A number of institutional investors have recently bought and sold shares of the stock. Fiduciary Financial Advisors bought a new position in shares of Canadian Pacific Kansas City in the 2nd quarter worth $25,000. Balance Wealth Partners LLC bought a new stake in Canadian Pacific Kansas City during the third quarter valued at about $39,000. Jones Financial Companies Lllp bought a new stake in Canadian Pacific Kansas City during the second quarter valued at about $44,000. Western Wealth Management LLC purchased a new position in Canadian Pacific Kansas City in the first quarter valued at about $50,000. Finally, Knuff & Co LLC purchased a new position in Canadian Pacific Kansas City in the second quarter valued at about $50,000. 72.20% of the stock is owned by institutional investors.

Canadian Pacific Kansas City Price Performance

The company has a market cap of $77.42 billion, a PE ratio of 28.36, a price-to-earnings-growth ratio of 1.89 and a beta of 1.13. The company has a quick ratio of 0.50, a current ratio of 0.59 and a debt-to-equity ratio of 0.47. The firm has a 50 day simple moving average of $88.86 and a 200-day simple moving average of $85.81.

About Canadian Pacific Kansas City

Canadian Pacific Kansas City Limited NYSE: CP is a North American transportation company that operates Canadian Pacific Kansas City (CPKC), a Class I freight railway. The company was created in 2023 through the combination of Canadian Pacific and Kansas City Southern, forming the first single-line railroad connecting Canada, the United States and Mexico.

CPKC transports a broad range of freight, including grain and fertilizers, coal, forest products, automotive goods, energy and chemicals, industrial and consumer products, and intermodal shipments.

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