Canadian Pacific Kansas City (NYSE:CP) Trading Down 3.9% on Disappointing Earnings

Canadian Pacific Kansas City Limited (NYSE:CP) (TSE:CP)’s stock price traded down 3.9% during trading on Wednesday after the company announced weaker than expected quarterly earnings. The company traded as low as $83.53 and last traded at $84.34. 991,825 shares were traded during trading, a decline of 51% from the average session volume of 2,036,416 shares. The stock had previously closed at $87.72.

The transportation company reported $0.69 EPS for the quarter, missing the consensus estimate of $0.70 by ($0.01). Canadian Pacific Kansas City had a net margin of 28.27% and a return on equity of 8.57%. The firm had revenue of $2.61 billion for the quarter, compared to analyst estimates of $2.59 billion.

Canadian Pacific Kansas City Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, July 29th. Shareholders of record on Friday, June 28th will be given a $0.141 dividend. This represents a $0.56 dividend on an annualized basis and a yield of 0.69%. The ex-dividend date is Friday, June 28th. Canadian Pacific Kansas City’s dividend payout ratio is presently 17.95%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on the stock. Susquehanna Bancshares lowered shares of Canadian Pacific Kansas City from a “positive” rating to a “neutral” rating and decreased their price target for the company from $90.00 to $87.00 in a report on Monday, January 8th. Raymond James raised their target price on shares of Canadian Pacific Kansas City from $120.00 to $130.00 and gave the company an “outperform” rating in a research report on Monday. Barclays upped their price target on shares of Canadian Pacific Kansas City from $90.00 to $96.00 and gave the stock an “overweight” rating in a report on Thursday, April 4th. Benchmark reissued a “hold” rating on shares of Canadian Pacific Kansas City in a report on Thursday. Finally, Susquehanna lowered their target price on Canadian Pacific Kansas City from $84.00 to $80.00 and set a “neutral” rating for the company in a report on Thursday. Twelve equities research analysts have rated the stock with a hold rating and twelve have issued a buy rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $96.42.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the business. Capital Investment Advisors LLC bought a new position in Canadian Pacific Kansas City during the third quarter worth $259,000. Ballast Advisors LLC boosted its position in shares of Canadian Pacific Kansas City by 2.8% during the 3rd quarter. Ballast Advisors LLC now owns 9,341 shares of the transportation company’s stock worth $695,000 after purchasing an additional 254 shares in the last quarter. Quaker Wealth Management LLC bought a new position in shares of Canadian Pacific Kansas City during the 3rd quarter worth about $223,000. U.S. Capital Wealth Advisors LLC grew its stake in shares of Canadian Pacific Kansas City by 15.6% in the 3rd quarter. U.S. Capital Wealth Advisors LLC now owns 14,803 shares of the transportation company’s stock valued at $1,102,000 after buying an additional 2,000 shares during the period. Finally, Valeo Financial Advisors LLC increased its position in Canadian Pacific Kansas City by 4.1% in the 3rd quarter. Valeo Financial Advisors LLC now owns 3,556 shares of the transportation company’s stock valued at $265,000 after buying an additional 141 shares in the last quarter. 72.20% of the stock is owned by institutional investors.

Canadian Pacific Kansas City Trading Up 0.2 %

The company has a debt-to-equity ratio of 0.46, a quick ratio of 0.46 and a current ratio of 0.53. The business has a 50 day moving average of $87.11 and a two-hundred day moving average of $79.74. The firm has a market capitalization of $76.56 billion, a price-to-earnings ratio of 26.31, a P/E/G ratio of 2.10 and a beta of 0.94.

About Canadian Pacific Kansas City

Canadian Pacific Kansas City Limited, together with its subsidiaries, owns and operates a transcontinental freight railway in Canada, the United States, and Mexico. The company transports bulk commodities, including grain, coal, potash, fertilizers, and sulphur; merchandise freight, such as forest products, energy, chemicals and plastics, metals, minerals, consumer products, and automotive; and intermodal traffic comprising retail goods in overseas containers.