Kansas City Southern (KSU) Receives $110.38 Average PT from Brokerages

Kansas City Southern (NYSE:KSU) has been given an average recommendation of “Buy” by the twenty research firms that are currently covering the company, Marketbeat Ratings reports. Nine research analysts have rated the stock with a hold rating, ten have given a buy rating and one has issued a strong buy rating on the company. The average 1 year price target among brokerages that have updated their coverage on the stock in the last year is $110.38.

Several brokerages have weighed in on KSU. BidaskClub raised shares of Kansas City Southern from a “buy” rating to a “strong-buy” rating in a report on Friday, August 18th. Stifel Nicolaus reissued a “buy” rating and set a $118.00 price objective (up from $114.00) on shares of Kansas City Southern in a report on Friday, August 18th. Cowen and Company reissued a “market perform” rating and set a $104.00 price objective (up from $95.00) on shares of Kansas City Southern in a report on Monday, July 24th. BMO Capital Markets reissued a “market perform” rating and set a $105.00 price objective (up from $98.00) on shares of Kansas City Southern in a report on Tuesday, July 25th. Finally, Citigroup Inc. reissued a “buy” rating and set a $123.00 price objective (up from $116.00) on shares of Kansas City Southern in a report on Wednesday, October 4th.

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Shares of Kansas City Southern (KSU) traded up 1.36% during midday trading on Thursday, reaching $105.19. 1,734,623 shares of the company were exchanged. The stock’s 50-day moving average price is $105.62 and its 200-day moving average price is $99.98. The company has a market capitalization of $11.09 billion, a PE ratio of 21.17 and a beta of 0.81. Kansas City Southern has a 52-week low of $79.05 and a 52-week high of $109.13.

Kansas City Southern (NYSE:KSU) last announced its quarterly earnings data on Friday, October 20th. The transportation company reported $1.35 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $1.32 by $0.03. The company had revenue of $653.00 million during the quarter, compared to analyst estimates of $651.95 million. Kansas City Southern had a net margin of 21.52% and a return on equity of 11.40%. The firm’s revenue for the quarter was up 8.0% compared to the same quarter last year. During the same period last year, the business earned $1.12 EPS. Analysts anticipate that Kansas City Southern will post $5.17 EPS for the current year.

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, October 4th. Investors of record on Monday, September 11th were given a $0.36 dividend. The ex-dividend date was Friday, September 8th. This is an increase from Kansas City Southern’s previous quarterly dividend of $0.33. This represents a $1.44 annualized dividend and a yield of 1.37%. Kansas City Southern’s dividend payout ratio (DPR) is currently 28.29%.

Kansas City Southern announced that its Board of Directors has authorized a stock buyback plan on Tuesday, August 15th that permits the company to repurchase $800.00 million in outstanding shares. This repurchase authorization permits the transportation company to purchase up to 7.1% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s leadership believes its stock is undervalued.

In other news, Director Henry J. Maier acquired 3,000 shares of the business’s stock in a transaction that occurred on Thursday, August 17th. The shares were purchased at an average cost of $106.19 per share, for a total transaction of $318,570.00. Following the transaction, the director now directly owns 4,159 shares in the company, valued at approximately $441,644.21. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Antonio O. Garza sold 4,018 shares of Kansas City Southern stock in a transaction dated Tuesday, August 22nd. The shares were sold at an average price of $107.94, for a total transaction of $433,702.92. Following the completion of the sale, the director now owns 4,920 shares in the company, valued at $531,064.80. The disclosure for this sale can be found here. Over the last quarter, insiders sold 14,469 shares of company stock worth $1,522,510. 0.95% of the stock is currently owned by insiders.

A number of large investors have recently modified their holdings of the stock. QS Investors LLC lifted its position in Kansas City Southern by 0.5% in the 2nd quarter. QS Investors LLC now owns 1,320 shares of the transportation company’s stock valued at $138,000 after purchasing an additional 7 shares during the last quarter. Savant Capital LLC lifted its position in Kansas City Southern by 0.4% in the 2nd quarter. Savant Capital LLC now owns 3,214 shares of the transportation company’s stock valued at $336,000 after purchasing an additional 13 shares during the last quarter. Moors & Cabot Inc. lifted its position in Kansas City Southern by 1.2% in the 2nd quarter. Moors & Cabot Inc. now owns 4,277 shares of the transportation company’s stock valued at $447,000 after purchasing an additional 51 shares during the last quarter. Envestnet Asset Management Inc. lifted its position in Kansas City Southern by 2.4% in the 1st quarter. Envestnet Asset Management Inc. now owns 2,250 shares of the transportation company’s stock valued at $194,000 after purchasing an additional 52 shares during the last quarter. Finally, First Manhattan Co. lifted its position in Kansas City Southern by 1.2% in the 2nd quarter. First Manhattan Co. now owns 4,547 shares of the transportation company’s stock valued at $475,000 after purchasing an additional 52 shares during the last quarter. Hedge funds and other institutional investors own 84.59% of the company’s stock.

About Kansas City Southern

Kansas City Southern (KCS) is a holding company. The Company has domestic and international rail operations in North America that are focused on the north/south freight corridor connecting commercial and industrial markets in the central United States with industrial cities in Mexico. The Company’s subsidiaries include The Kansas City Southern Railway Company (KCSR) and Kansas City Southern de Mexico, SA de C.V.

Analyst Recommendations for Kansas City Southern (NYSE:KSU)

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