Canadian Pacific Kansas City (NYSE:CP) Reaches New 12-Month High – Should You Buy?

Canadian Pacific Kansas City Limited (NYSE:CP) (TSE:CP) shares reached a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $89.42 and last traded at $89.3090, with a volume of 2769646 shares trading hands. The stock had previously closed at $87.59.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on CP. Wall Street Zen lowered shares of Canadian Pacific Kansas City from a “hold” rating to a “sell” rating in a report on Tuesday. Citigroup lowered their price objective on Canadian Pacific Kansas City from $88.00 to $86.00 and set a “buy” rating for the company in a report on Friday, January 30th. National Bank Financial cut Canadian Pacific Kansas City from a “strong-buy” rating to a “hold” rating in a research note on Thursday, January 8th. Evercore decreased their target price on Canadian Pacific Kansas City from $87.00 to $85.00 and set an “outperform” rating for the company in a research report on Thursday, January 29th. Finally, Barclays set a $93.00 price target on Canadian Pacific Kansas City in a report on Thursday, January 29th. Ten research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $92.00.

Canadian Pacific Kansas City Trading Down 1.2%

The firm has a market cap of $77.85 billion, a P/E ratio of 26.84, a P/E/G ratio of 1.87 and a beta of 1.06. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.41 and a current ratio of 0.49. The firm has a fifty day moving average of $77.79 and a 200-day moving average of $75.39.

Canadian Pacific Kansas City (NYSE:CP) (TSE:CP) last issued its quarterly earnings data on Wednesday, January 28th. The transportation company reported $0.95 EPS for the quarter, missing analysts’ consensus estimates of $0.99 by ($0.04). The company had revenue of $2.85 billion for the quarter, compared to the consensus estimate of $2.85 billion. Canadian Pacific Kansas City had a return on equity of 8.91% and a net margin of 27.49%.Canadian Pacific Kansas City’s quarterly revenue was up 1.3% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.29 earnings per share. Equities research analysts forecast that Canadian Pacific Kansas City Limited will post 3.42 earnings per share for the current year.

Canadian Pacific Kansas City Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, April 27th. Investors of record on Friday, March 27th will be issued a $0.228 dividend. This represents a $0.91 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date of this dividend is Friday, March 27th. Canadian Pacific Kansas City’s dividend payout ratio (DPR) is 20.43%.

Institutional Investors Weigh In On Canadian Pacific Kansas City

Large investors have recently made changes to their positions in the company. Norges Bank acquired a new position in shares of Canadian Pacific Kansas City during the fourth quarter worth approximately $978,558,000. JPMorgan Chase & Co. boosted its position in Canadian Pacific Kansas City by 87.2% during the 2nd quarter. JPMorgan Chase & Co. now owns 16,000,064 shares of the transportation company’s stock worth $1,268,325,000 after acquiring an additional 7,454,810 shares during the period. Janus Henderson Group PLC boosted its position in Canadian Pacific Kansas City by 586.1% during the 4th quarter. Janus Henderson Group PLC now owns 6,147,835 shares of the transportation company’s stock worth $452,781,000 after acquiring an additional 5,251,755 shares during the period. Fisher Asset Management LLC grew its stake in shares of Canadian Pacific Kansas City by 281.0% in the second quarter. Fisher Asset Management LLC now owns 5,431,316 shares of the transportation company’s stock worth $430,540,000 after purchasing an additional 4,005,942 shares in the last quarter. Finally, Invesco Ltd. increased its holdings in shares of Canadian Pacific Kansas City by 18.3% during the third quarter. Invesco Ltd. now owns 23,128,485 shares of the transportation company’s stock valued at $1,722,841,000 after purchasing an additional 3,585,030 shares during the period. Institutional investors and hedge funds own 72.20% of the company’s stock.

Canadian Pacific Kansas City Company Profile

Canadian Pacific Kansas City (CPKC) is a North American Class I freight railroad formed through the combination of Canadian Pacific Railway and Kansas City Southern. The merged company operates an integrated rail network that spans Canada, the United States and Mexico, providing a single-line rail connection across all three countries. This transborder footprint is intended to streamline cross-border freight flows and provide shippers with direct rail access from Canadian and U.S. production centers to Mexican markets and ports.

CPKC’s core business is freight transportation and related logistics services.