Canadian Pacific Railway Limited (CP) Downgraded to Sell at Zacks Investment Research
Canadian Pacific Railway Limited (NYSE:CP) (TSE:CP) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Friday.
According to Zacks, “We expect Canadian Pacific’s fourth-quarter results to be hurt by weak coal demand as has been the case in the past few quarters. The Zacks Consensus Estimate for the fourth quarter has moved down by $0.01 to $2.43 per share over the last seven days. Detailed results should be out on Jan 18. In fact, the company reported lower-than-expected earnings and revenues in the third quarter, primarily due to weak coal demand. The company has slashed its 2016 earnings per share growth outlook and now expects the bottom line to grow in mid-single digits in 2016 (the previous outlook had indicated double-digit earnings per share growth). Moreover, the company's high debt levels raise concerns. Due to the headwinds, shares of the company have lagged the broader industry in the last three months.. “
A number of other research analysts also recently commented on CP. Seaport Global Securities began coverage on shares of Canadian Pacific Railway Limited in a research report on Monday, October 24th. They issued a “buy” rating and a $165.00 price objective for the company. Barclays PLC reaffirmed a “buy” rating and set a $177.00 target price on shares of Canadian Pacific Railway Limited in a report on Tuesday. Susquehanna reaffirmed a “neutral” rating and set a $168.00 target price (up previously from $167.00) on shares of Canadian Pacific Railway Limited in a report on Saturday, October 22nd. CLSA raised shares of Canadian Pacific Railway Limited from an “underperform” rating to an “outperform” rating in a report on Tuesday. Finally, BMO Capital Markets reaffirmed an “outperform” rating and set a $220.00 target price (up previously from $215.00) on shares of Canadian Pacific Railway Limited in a report on Saturday, October 22nd. Two investment analysts have rated the stock with a sell rating, eight have issued a hold rating and twenty-four have given a buy rating to the company. The company currently has a consensus rating of “Buy” and an average price target of $181.69.
Shares of Canadian Pacific Railway Limited (NYSE:CP) opened at 147.76 on Friday. Canadian Pacific Railway Limited has a 12-month low of $97.09 and a 12-month high of $157.34. The firm has a market cap of $21.61 billion, a price-to-earnings ratio of 19.38 and a beta of 1.08. The stock’s 50 day moving average is $147.83 and its 200 day moving average is $146.58.
Canadian Pacific Railway Limited (NYSE:CP) last announced its quarterly earnings data on Wednesday, October 19th. The company reported $2.73 EPS for the quarter, missing analysts’ consensus estimates of $2.79 by $0.06. Canadian Pacific Railway Limited had a net margin of 24.33% and a return on equity of 30.92%. The firm earned $1.55 billion during the quarter, compared to the consensus estimate of $1.26 billion. During the same period last year, the business earned $2.69 EPS. The business’s revenue was down 9.1% on a year-over-year basis. Equities analysts expect that Canadian Pacific Railway Limited will post $7.92 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Monday, January 30th. Shareholders of record on Friday, December 30th will be issued a dividend of $0.379 per share. This represents a $1.52 dividend on an annualized basis and a yield of 1.03%. The ex-dividend date is Wednesday, December 28th. Canadian Pacific Railway Limited’s payout ratio is 19.66%.
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In other Canadian Pacific Railway Limited news, Director Ubavka Rebecca Macdonald sold 3,900 shares of the business’s stock in a transaction that occurred on Friday, December 23rd. The shares were sold at an average price of $143.65, for a total transaction of $560,235.00. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP Peter John Edwards sold 15,300 shares of the business’s stock in a transaction that occurred on Wednesday, November 23rd. The stock was sold at an average price of $149.60, for a total transaction of $2,288,880.00. Following the sale, the vice president now directly owns 16,333 shares in the company, valued at $2,443,416.80. The disclosure for this sale can be found here. Company insiders own 0.13% of the company’s stock.
Large investors have recently bought and sold shares of the company. Ngam Advisors L.P. raised its stake in Canadian Pacific Railway Limited by 16.2% in the third quarter. Ngam Advisors L.P. now owns 48,028 shares of the company’s stock worth $7,334,000 after buying an additional 6,693 shares during the last quarter. Capital Fund Management S.A. raised its stake in Canadian Pacific Railway Limited by 217.4% in the second quarter. Capital Fund Management S.A. now owns 324,039 shares of the company’s stock worth $41,733,000 after buying an additional 221,961 shares in the last quarter. Her Majesty the Queen in Right of the Province of Alberta as represented by Alberta Investment Management Corp raised its stake in Canadian Pacific Railway Limited by 31.9% in the second quarter. Her Majesty the Queen in Right of the Province of Alberta as represented by Alberta Investment Management Corp now owns 266,300 shares of the company’s stock worth $44,294,000 after buying an additional 64,391 shares in the last quarter. OZ Management LP purchased a new stake in Canadian Pacific Railway Limited during the third quarter worth approximately $78,135,000. Finally, CIBC Asset Management Inc raised its stake in Canadian Pacific Railway Limited by 139.6% in the second quarter. CIBC Asset Management Inc now owns 1,316,244 shares of the company’s stock worth $168,797,000 after buying an additional 766,796 shares in the last quarter. 68.63% of the stock is currently owned by hedge funds and other institutional investors.
About Canadian Pacific Railway Limited
Canadian Pacific Railway Limited (CP), together with its subsidiaries, operates a transcontinental railway in Canada and the United States. The Company operates in rail transportation segment. The Company’s business mix includes bulk commodities, merchandise freight and intermodal traffic over a network of approximately 12,500 miles, serving the principal business centers of Canada from Montreal, Quebec, to Vancouver, British Columbia, and the United States Northeast and Midwest regions.
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