Wells Fargo & Company Issues Pessimistic Forecast for Canadian Pacific Kansas City (NYSE:CP) Stock Price

Canadian Pacific Kansas City (NYSE:CP) (TSE:CP) had its target price trimmed by Wells Fargo & Company from $92.00 to $90.00 in a report issued on Tuesday morning,Benzinga reports. The brokerage currently has an overweight rating on the transportation company’s stock.

Other analysts have also issued reports about the stock. Bank of America decreased their price target on shares of Canadian Pacific Kansas City from $94.00 to $91.00 and set a “buy” rating for the company in a research report on Thursday, October 24th. Susquehanna upgraded shares of Canadian Pacific Kansas City from a “neutral” rating to a “positive” rating and lowered their target price for the company from $94.00 to $92.00 in a research note on Thursday, October 24th. Sanford C. Bernstein cut their price target on shares of Canadian Pacific Kansas City from $91.98 to $91.25 and set a “market perform” rating on the stock in a report on Wednesday, October 9th. Benchmark reiterated a “hold” rating on shares of Canadian Pacific Kansas City in a report on Thursday, October 24th. Finally, StockNews.com downgraded Canadian Pacific Kansas City from a “hold” rating to a “sell” rating in a research note on Wednesday, December 25th. One analyst has rated the stock with a sell rating, five have issued a hold rating and eleven have given a buy rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $93.79.

Canadian Pacific Kansas City Stock Performance

Shares of NYSE:CP opened at $77.17 on Tuesday. The firm has a 50 day moving average of $75.21 and a 200 day moving average of $79.41. The company has a quick ratio of 0.46, a current ratio of 0.53 and a debt-to-equity ratio of 0.42. The company has a market capitalization of $72.03 billion, a price-to-earnings ratio of 27.56, a price-to-earnings-growth ratio of 2.26 and a beta of 0.96. Canadian Pacific Kansas City has a 52 week low of $70.89 and a 52 week high of $91.58.

Canadian Pacific Kansas City (NYSE:CP) (TSE:CP) last released its quarterly earnings results on Wednesday, October 23rd. The transportation company reported $0.99 EPS for the quarter, missing the consensus estimate of $1.01 by ($0.02). Canadian Pacific Kansas City had a return on equity of 8.78% and a net margin of 24.50%. The company had revenue of $3.55 billion during the quarter, compared to the consensus estimate of $3.59 billion. During the same period in the previous year, the firm posted $0.69 earnings per share. The company’s revenue was up 6.3% on a year-over-year basis. On average, sell-side analysts predict that Canadian Pacific Kansas City will post 3.05 earnings per share for the current fiscal year.

Canadian Pacific Kansas City Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, January 27th. Stockholders of record on Friday, December 27th will be issued a $0.14 dividend. This is an increase from Canadian Pacific Kansas City’s previous quarterly dividend of $0.14. This represents a $0.56 annualized dividend and a dividend yield of 0.73%. The ex-dividend date is Friday, December 27th. Canadian Pacific Kansas City’s dividend payout ratio is 20.00%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in CP. GAMMA Investing LLC grew its position in Canadian Pacific Kansas City by 20.3% during the 4th quarter. GAMMA Investing LLC now owns 2,929 shares of the transportation company’s stock worth $212,000 after purchasing an additional 495 shares during the period. Versant Capital Management Inc boosted its stake in shares of Canadian Pacific Kansas City by 277.2% in the fourth quarter. Versant Capital Management Inc now owns 694 shares of the transportation company’s stock worth $50,000 after buying an additional 510 shares during the last quarter. JPMorgan Chase & Co. grew its holdings in Canadian Pacific Kansas City by 4.5% during the third quarter. JPMorgan Chase & Co. now owns 8,768,362 shares of the transportation company’s stock worth $750,046,000 after acquiring an additional 381,594 shares during the period. Principal Financial Group Inc. raised its position in Canadian Pacific Kansas City by 10.3% during the third quarter. Principal Financial Group Inc. now owns 2,742,375 shares of the transportation company’s stock valued at $234,806,000 after acquiring an additional 257,200 shares in the last quarter. Finally, Franklin Resources Inc. lifted its holdings in Canadian Pacific Kansas City by 9.7% in the third quarter. Franklin Resources Inc. now owns 6,096,341 shares of the transportation company’s stock valued at $501,219,000 after acquiring an additional 537,418 shares during the period. 72.20% of the stock is currently owned by institutional investors and hedge funds.

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.