Canadian Pacific Kansas City (TSE:CP) Stock Price Crosses Above Two Hundred Day Moving Average - Should You Sell?

Key Points

• Canadian Pacific Kansas City shares rose above their 200-day moving average, reaching C$125.51 before closing at C$124.46. The technical move signals improved momentum, although the stock remained below its 50-day average of C$128.07.
• Analyst sentiment is broadly positive, with a consensus rating of “Moderate Buy” and an average price target of C$134.36. Several firms recently raised their targets, including JPMorgan to C$153 and ATB Cormark to C$143.
• The company reported C$1.27 in quarterly EPS on C$4.16 billion in revenue and increased its quarterly dividend to $0.268 per share, implying a 0.9% yield. However, insiders sold approximately 78,000 shares worth $10.5 million during the quarter.

Shares of Canadian Pacific Kansas City Limited (TSE:CP - Get Free Report) NYSE: CP passed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of C$120.92 and traded as high as C$125.51. Canadian Pacific Kansas City shares last traded at C$124.46, with a volume of 1,008,112 shares.

Analyst Ratings Changes

CP has been the topic of a number of recent analyst reports. ATB Cormark Capital Markets raised their price objective on Canadian Pacific Kansas City from C$137.00 to C$143.00 and gave the company an "outperform" rating in a research note on Thursday, July 30th. Barclays raised their price objective on Canadian Pacific Kansas City from C$135.00 to C$145.00 in a research report on Friday, June 26th. Stephens raised Canadian Pacific Kansas City to a "hold" rating in a report on Wednesday, July 8th. JPMorgan Chase & Co. upped their target price on shares of Canadian Pacific Kansas City from C$135.00 to C$153.00 in a report on Thursday, July 30th. Finally, Royal Bank Of Canada boosted their price objective on Canadian Pacific Kansas City from C$139.00 to C$145.00 and gave the stock an "outperform" rating in a research note on Thursday, July 30th. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of C$134.36.

Canadian Pacific Kansas City Stock Down 1.0%

The firm has a 50 day moving average price of C$128.07 and a 200-day moving average price of C$120.92. The firm has a market cap of C$109.41 billion, a price-to-earnings ratio of 28.94, a price-to-earnings-growth ratio of 2.32 and a beta of 1.30. The company has a debt-to-equity ratio of 53.93, a current ratio of 0.59 and a quick ratio of 0.42.

Canadian Pacific Kansas City (TSE:CP - Get Free Report) NYSE: CP last announced its quarterly earnings data 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 firm had revenue of C$4.16 billion during the quarter. As a group, equities analysts predict that Canadian Pacific Kansas City Limited will post 4.3438583 EPS for the current fiscal year.

Canadian Pacific Kansas City Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, July 27th. Investors of record on Monday, July 27th were paid a dividend of $0.268 per share. This represents a $1.07 dividend on an annualized basis and a dividend yield of 0.9%. This is a boost from Canadian Pacific Kansas City's previous quarterly dividend of $0.23. The ex-dividend date of this dividend was Friday, June 26th. Canadian Pacific Kansas City's payout ratio is presently 22.14%.

Insider Activity at Canadian Pacific Kansas City

In other Canadian Pacific Kansas City news, insider Laird Joseph Pitz sold 24,630 shares of the stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of C$135.08, for a total value of C$3,327,020.40. Also, insider Pamela Lynne Arpin sold 1,385 shares of the stock in a transaction dated Friday, August 21st. The shares were sold at an average price of C$132.92, for a total value of C$184,094.20. Following the completion of the transaction, the insider directly owned 4,578 shares in the company, valued at C$608,507.76. The trade was a 23.23% decrease in their position. Over the last quarter, insiders sold 78,015 shares of company stock worth $10,505,115. 0.03% of the stock is owned by insiders.

Canadian Pacific Kansas City Company Profile

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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