Canadian Pacific Kansas City (NYSE:CP) Trading Down 3.9% After Earnings Miss

Canadian Pacific Kansas City Limited (NYSE:CP) (TSE:CP) shares were down 3.9% 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. Approximately 991,825 shares were traded during mid-day trading, a decline of 51% from the average daily volume of 2,036,416 shares. The stock had previously closed at $87.72.

The transportation company reported $0.69 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.70 by ($0.01). Canadian Pacific Kansas City had a return on equity of 8.52% and a net margin of 31.29%. The business 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 paid a dividend of $0.141 per share. The ex-dividend date is Friday, June 28th. This represents a $0.56 annualized dividend and a yield of 0.69%. Canadian Pacific Kansas City’s dividend payout ratio (DPR) is presently 17.83%.

Analyst Ratings Changes

Several equities research analysts have issued reports on CP shares. Stifel Nicolaus lowered their target price on shares of Canadian Pacific Kansas City from $83.00 to $82.00 and set a “hold” rating on the stock in a research note on Thursday. Benchmark reaffirmed a “hold” rating on shares of Canadian Pacific Kansas City in a research note on Thursday. TD Securities cut shares of Canadian Pacific Kansas City from a “buy” rating to a “hold” rating in a research note on Monday, January 8th. Susquehanna lowered their price target on shares of Canadian Pacific Kansas City from $84.00 to $80.00 and set a “neutral” rating on the stock in a research report on Thursday. Finally, Evercore ISI lowered their price target on shares of Canadian Pacific Kansas City from $90.00 to $89.00 and set an “outperform” rating on the stock in a research report on Thursday. Twelve research analysts have rated the stock with a hold rating and twelve have issued a buy rating to the stock. According to MarketBeat, Canadian Pacific Kansas City currently has a consensus rating of “Moderate Buy” and a consensus target price of $96.42.

Institutional Trading of Canadian Pacific Kansas City

A number of hedge funds have recently added to or reduced their stakes in CP. Capital Investment Advisors LLC acquired a new stake in Canadian Pacific Kansas City in the 3rd quarter worth about $259,000. Ballast Advisors LLC lifted its stake in shares of Canadian Pacific Kansas City by 2.8% in the 3rd quarter. Ballast Advisors LLC now owns 9,341 shares of the transportation company’s stock valued at $695,000 after purchasing an additional 254 shares in the last quarter. Quaker Wealth Management LLC acquired a new position in shares of Canadian Pacific Kansas City in the 3rd quarter valued at about $223,000. U.S. Capital Wealth Advisors LLC lifted 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 purchasing an additional 2,000 shares in the last quarter. Finally, Valeo Financial Advisors LLC lifted its stake in shares of 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 purchasing an additional 141 shares in the last quarter. 72.20% of the stock is owned by institutional investors and hedge funds.

Canadian Pacific Kansas City Stock Up 0.2 %

The firm has a market capitalization of $76.56 billion, a price-to-earnings ratio of 26.14, a price-to-earnings-growth ratio of 2.25 and a beta of 0.94. The company has a current ratio of 0.53, a quick ratio of 0.46 and a debt-to-equity ratio of 0.46. The firm has a 50 day moving average price of $87.11 and a two-hundred day moving average price of $79.74.

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.