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

Canadian Pacific Kansas City Limited (NYSE:CP) (TSE:CP)’s stock price traded down 3.9% on Wednesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $83.53 and last traded at $84.34. 991,825 shares traded hands 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 earnings per share for the quarter, missing the consensus estimate of $0.70 by ($0.01). The business had revenue of $2.61 billion for the quarter, compared to analyst estimates of $2.59 billion. Canadian Pacific Kansas City had a net margin of 31.29% and a return on equity of 8.52%.

Canadian Pacific Kansas City Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, July 29th. Investors of record on Friday, June 28th will be given a dividend of $0.141 per share. This represents a $0.56 annualized dividend and a yield of 0.69%. The ex-dividend date of this dividend is Friday, June 28th. Canadian Pacific Kansas City’s payout ratio is 17.83%.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on the company. Raymond James boosted their target price on Canadian Pacific Kansas City from $120.00 to $130.00 and gave the company an “outperform” rating in a research note on Monday. Susquehanna lowered their target price on Canadian Pacific Kansas City from $84.00 to $80.00 and set a “neutral” rating on the stock in a research note on Thursday. StockNews.com upgraded Canadian Pacific Kansas City from a “sell” rating to a “hold” rating in a research note on Wednesday, January 31st. TD Securities downgraded Canadian Pacific Kansas City from a “buy” rating to a “hold” rating in a research note on Monday, January 8th. Finally, Evercore ISI lowered their target price on Canadian Pacific Kansas City from $90.00 to $89.00 and set an “outperform” rating on the stock in a research note on Thursday. Twelve analysts have rated the stock with a hold rating and twelve have given a buy rating to the stock. Based on data from MarketBeat, Canadian Pacific Kansas City presently has a consensus rating of “Moderate Buy” and a consensus price target of $96.42.

Hedge Funds Weigh In On Canadian Pacific Kansas City

Several large investors have recently added to or reduced their stakes in CP. Sands Capital Management LLC acquired a new position in Canadian Pacific Kansas City in the 3rd quarter valued at approximately $31,000. Anchor Investment Management LLC acquired a new position in shares of Canadian Pacific Kansas City in the 4th quarter worth approximately $40,000. Independence Bank of Kentucky acquired a new position in shares of Canadian Pacific Kansas City in the 4th quarter worth approximately $43,000. McGlone Suttner Wealth Management Inc. acquired a new position in shares of Canadian Pacific Kansas City in the 4th quarter worth approximately $45,000. Finally, Rational Advisors LLC acquired a new position in shares of Canadian Pacific Kansas City in the 1st quarter worth approximately $52,000. Institutional investors and hedge funds own 72.20% of the company’s stock.

Canadian Pacific Kansas City Stock Performance

The firm has a market capitalization of $76.56 billion, a P/E ratio of 26.14, a price-to-earnings-growth ratio of 2.25 and a beta of 0.94. The stock has a 50-day moving average of $87.11 and a 200 day moving average of $79.74. The company has a debt-to-equity ratio of 0.46, a quick ratio of 0.46 and a current ratio of 0.53.

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.