Canadian Pacific Kansas City (NYSE:CP) Stock Price Down 3.9% Following Weak Earnings

Shares of Canadian Pacific Kansas City Limited (NYSE:CP) (TSE:CP) fell 3.9% during trading on Wednesday following a dissappointing earnings announcement. The stock traded as low as $83.53 and last traded at $84.34. 991,825 shares were traded during mid-day 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 analysts’ consensus estimates 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 company 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. Stockholders of record on Friday, June 28th will be given a dividend of $0.141 per share. This represents a $0.56 dividend on an annualized basis and a dividend yield of 0.69%. The ex-dividend date is Friday, June 28th. Canadian Pacific Kansas City’s payout ratio is 17.95%.

Analysts Set New Price Targets

CP has been the subject of a number of recent analyst reports. Benchmark restated a “hold” rating on shares of Canadian Pacific Kansas City in a research note on Thursday. Susquehanna Bancshares downgraded shares of Canadian Pacific Kansas City from a “positive” rating to a “neutral” rating and decreased their price target for the stock from $90.00 to $87.00 in a research report on Monday, January 8th. Raymond James upped their price target on shares of Canadian Pacific Kansas City from $120.00 to $130.00 and gave the company an “outperform” rating in a report on Monday. TD Securities downgraded shares of Canadian Pacific Kansas City from a “buy” rating to a “hold” rating in a research note on Monday, January 8th. Finally, Evercore ISI dropped their target price on shares of Canadian Pacific Kansas City from $90.00 to $89.00 and set an “outperform” rating for the company 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. Based on data from MarketBeat, Canadian Pacific Kansas City currently has an average rating of “Moderate Buy” and an average target price of $96.42.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. GAMMA Investing LLC lifted its position in shares of Canadian Pacific Kansas City by 12.1% during the 1st quarter. GAMMA Investing LLC now owns 1,229 shares of the transportation company’s stock valued at $108,000 after acquiring an additional 133 shares during the last quarter. Valeo Financial Advisors LLC raised its position in shares of Canadian Pacific Kansas City by 4.1% during the third quarter. Valeo Financial Advisors LLC now owns 3,556 shares of the transportation company’s stock worth $265,000 after purchasing an additional 141 shares during the period. Commerce Bank increased its position in Canadian Pacific Kansas City by 0.3% during the fourth quarter. Commerce Bank now owns 55,566 shares of the transportation company’s stock worth $4,393,000 after buying an additional 144 shares during the last quarter. Accretive Wealth Partners LLC raised its holdings in Canadian Pacific Kansas City by 1.5% during the fourth quarter. Accretive Wealth Partners LLC now owns 9,530 shares of the transportation company’s stock valued at $753,000 after buying an additional 145 shares in the last quarter. Finally, Commonwealth Equity Services LLC increased its holdings in shares of Canadian Pacific Kansas City by 0.3% during the 3rd quarter. Commonwealth Equity Services LLC now owns 51,089 shares of the transportation company’s stock valued at $3,802,000 after acquiring an additional 148 shares during the last quarter. 72.20% of the stock is owned by institutional investors and hedge funds.

Canadian Pacific Kansas City Price Performance

The firm has a market capitalization of $76.56 billion, a P/E ratio of 26.31, a P/E/G ratio of 2.10 and a beta of 0.94. 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 stock has a 50 day moving average of $87.11 and a two-hundred day moving average of $79.74.

Canadian Pacific Kansas City Company Profile

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.