Canadian Pacific Kansas City (TSE:CP) Stock Price Crosses Below Fifty Day Moving Average After Analyst Downgrade

Key Points

• Shares fell below the 50-day moving average: Canadian Pacific Kansas City traded as low as C$120.82 and last changed hands at C$123.70 after Desjardins cut its price target from C$143 to C$141, while maintaining a buy rating.
• Analysts remain broadly optimistic: Several brokerages raised their targets, and the stock carries a “Moderate Buy” consensus rating with an average target of C$139.41.
• Operating performance was solid but faced cost pressure: Third-quarter revenue reached C$4.22 billion and EPS was C$1.28, supported by higher freight volumes, though elevated fuel costs weighed on profits. Insiders sold roughly 78,015 shares worth C$10.5 million over the past three months.

Canadian Pacific Kansas City Limited (TSE:CP - Get Free Report) NYSE: CP's share price crossed below its 50 day moving average during trading on Thursday after Desjardins lowered their price target on the stock from C$143.00 to C$141.00. The stock has a 50 day moving average of C$124.56 and traded as low as C$120.82. Desjardins currently has a buy rating on the stock. Canadian Pacific Kansas City shares last traded at C$123.70, with a volume of 1,496,336 shares traded.

Several other brokerages have also recently weighed in on CP. Scotia raised their target price on shares of Canadian Pacific Kansas City from C$143.00 to C$144.00 and gave the company an "outperform" rating in a report on Thursday. JPMorgan Chase & Co. boosted their price target on shares of Canadian Pacific Kansas City from C$135.00 to C$153.00 in a report on Thursday, July 30th. Canadian Imperial Bank of Commerce increased their price objective on shares of Canadian Pacific Kansas City from C$143.00 to C$150.00 and gave the company an "outperform" rating in a research report on Thursday. Scotiabank raised their price objective on shares of Canadian Pacific Kansas City from C$122.00 to C$143.00 and gave the company a "strong-buy" rating in a report on Thursday, July 16th. Finally, BMO Capital Markets raised their price objective on shares of Canadian Pacific Kansas City from C$142.00 to C$145.00 and gave the company an "outperform" rating in a report on Thursday, July 30th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of C$139.41.

Insider Activity at Canadian Pacific Kansas City

In other Canadian Pacific Kansas City news, insider Pamela Lynne Arpin sold 1,385 shares of the stock in a transaction that occurred on 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 transaction, the insider directly owned 4,578 shares in the company, valued at C$608,507.76. This represents a 23.23% decrease in their ownership of the stock. Also, insider Laird Joseph Pitz sold 24,630 shares of the firm's stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of C$135.08, for a total transaction of C$3,327,020.40. Insiders sold 78,015 shares of company stock valued at $10,505,115 over the last three months. 0.03% of the stock is owned by corporate insiders.

Canadian Pacific Kansas City News Roundup

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

• Positive Sentiment: Revenue and volumes increased: Third-quarter revenue reached C$4.22 billion, supported by higher freight volumes. The company reported earnings of C$1.28 per share, while its net margin remained a strong 25.04%. Canadian Pacific Kansas City Limited Q3 Sales Increase
• Positive Sentiment: Analysts remain broadly bullish: CIBC raised its price target to C$150, while Scotia increased its target to C$144 and National Bank Financial to C$142; all maintained or assigned positive “outperform” or “buy” ratings. Desjardins and ATB Cormark also retained bullish ratings, with targets of C$141 and C$144, respectively. Analyst target revisions
• Positive Sentiment: Coal-related business provides additional support: CPKC renewed its rail-service agreement with Elk Valley Resources, and coverage characterized a new coal deal as contributing to third-quarter growth. CPKC Renews Rail Service Deal
• Neutral Sentiment: Mixed target signals: Citigroup raised its target to C$106 and kept a “buy” rating, but its target remains below the current trading level. This contrasts with the higher targets from most other firms and highlights disagreement over near-term valuation. Citigroup analyst rating
• Negative Sentiment: Fuel costs pressured earnings: Reports described profits as flat or earnings as dented by higher fuel expenses, tempering the benefit from stronger sales and freight volumes. Canadian Pacific Kansas City reports flat profits amid higher fuel costs

Canadian Pacific Kansas City Trading Down 1.6%

The company has a quick ratio of 0.42, a current ratio of 0.52 and a debt-to-equity ratio of 56.46. The stock has a market capitalization of C$108.74 billion, a PE ratio of 28.77, a PEG ratio of 2.32 and a beta of 1.33. The business's 50-day moving average is C$124.56 and its two-hundred day moving average is C$119.18.

Canadian Pacific Kansas City (TSE:CP - Get Free Report) NYSE: CP last issued its quarterly earnings data on Wednesday, October 28th. The company reported C$1.28 earnings per share (EPS) for the quarter. Canadian Pacific Kansas City had a return on equity of 8.37% and a net margin of 24.14%. The company had revenue of C$4.22 billion for the quarter. On average, analysts anticipate that Canadian Pacific Kansas City Limited will post 4.34 earnings per share for the current fiscal year.

Canadian Pacific Kansas City Announces Dividend

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

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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