Canadian Pacific Kansas City (TSE:CP) Shares Break Below Two Hundred Day Moving Average - Time to Sell?

Key Points

• Canadian Pacific Kansas City shares fell below their 200-day moving average, reaching C$120.89 versus the C$122.42 average, before last trading at C$122.70.
• Despite the technical weakness, analysts remain broadly positive: the stock has a consensus “Moderate Buy” rating and an average price target of C$134.43, implying upside from its recent price.
• The company reported C$1.27 in quarterly EPS on C$4.16 billion in revenue and announced a quarterly dividend of $0.268 per share, a 0.9% annualized yield; insiders, however, sold 78,015 shares during the quarter.

Shares of Canadian Pacific Kansas City Limited (TSE:CP - Get Free Report) NYSE: CP passed below its two hundred day moving average during trading on Wednesday. The stock has a two hundred day moving average of C$122.42 and traded as low as C$120.89. Canadian Pacific Kansas City shares last traded at C$122.70, with a volume of 1,055,589 shares changing hands.

Wall Street Analyst Weigh In

CP has been the subject of several analyst reports. National Bank Financial set a C$140.00 target price on Canadian Pacific Kansas City and gave the stock an "outperform" rating in a report on Wednesday, September 23rd. Royal Bank Of Canada increased their price target on Canadian Pacific Kansas City from C$145.00 to C$146.00 and gave the company an "outperform" rating in a report on Thursday, September 24th. Citizens Jmp upgraded Canadian Pacific Kansas City to a "hold" rating in a report on Wednesday, July 15th. Raymond James Financial lifted their price target on shares of Canadian Pacific Kansas City from C$140.00 to C$144.00 and gave the company an "outperform" rating in a research report on Thursday, July 30th. Finally, BMO Capital Markets boosted their price objective on shares of Canadian Pacific Kansas City from C$142.00 to C$145.00 and gave the stock an "outperform" rating in a research note on Thursday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of C$134.43.

Canadian Pacific Kansas City Price Performance

The stock has a market cap of C$107.86 billion, a price-to-earnings ratio of 28.53, a price-to-earnings-growth ratio of 2.32 and a beta of 1.33. The stock has a fifty day simple moving average of C$125.45 and a 200-day simple moving average of C$122.42. The company has a current ratio of 0.59, a quick ratio of 0.42 and a debt-to-equity ratio of 53.93.

Canadian Pacific Kansas City (TSE:CP - Get Free Report) NYSE: CP last issued its quarterly earnings results on Wednesday, July 29th. The company reported C$1.27 EPS for the quarter. Canadian Pacific Kansas City had a return on equity of 8.35% and a net margin of 25.04%. The company had revenue of C$4.16 billion for the quarter. As a group, equities research analysts expect that Canadian Pacific Kansas City Limited will post 4.34 EPS for the current year.

Canadian Pacific Kansas City Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, October 26th. Investors of record on Monday, October 26th will be given a dividend of $0.2680 per share. The ex-dividend date of this dividend is Friday, September 25th. This represents a $1.07 dividend on an annualized basis and a yield of 0.9%. Canadian Pacific Kansas City's payout ratio is 22.14%.

Insider Buying and Selling

In related news, insider Mark Ashley Redd sold 52,000 shares of the company's stock in a transaction on Monday, August 24th. The shares were sold at an average price of C$134.50, for a total transaction of C$6,994,000.00. Following the completion of the transaction, the insider directly owned 2,199 shares in the company, valued at C$295,765.50. This represents a 95.94% decrease in their position. Also, insider Pamela Lynne Arpin sold 1,385 shares of the company's stock in a transaction on Friday, August 21st. The shares were sold at an average price of C$132.92, for a total transaction of C$184,094.20. Following the transaction, the insider owned 4,578 shares of the company's stock, valued at approximately C$608,507.76. The trade was a 23.23% decrease in their ownership of the stock. Over the last quarter, insiders have sold 78,015 shares of company stock valued at $10,505,115. 0.03% of the stock is owned by company insiders.

About Canadian Pacific Kansas City

With its global headquarters in Calgary, Alta., Canada, CPKC is the first and only single-line transnational railway linking Canada, the United States and México, with unrivaled access to major ports from Vancouver to Atlantic Canada to the Gulf Coast to Lázaro Cárdenas, México. Stretching approximately 20,000 route miles and employing 20,000 railroaders, CPKC provides North American customers unparalleled rail service and network reach to key markets across the continent. CPKC is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise.

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