Canadian Pacific Kansas City (NYSE:CP) Reaches New 52-Week High – Should You Buy?

Shares of Canadian Pacific Kansas City Limited (NYSE:CP) (TSE:CP) hit a new 52-week high during trading on Thursday . The stock traded as high as $93.95 and last traded at $93.7150, with a volume of 270630 shares traded. The stock had previously closed at $92.69.

Analyst Ratings Changes

A number of brokerages have weighed in on CP. ATB Cormark Capital Markets lowered shares of Canadian Pacific Kansas City from a “strong-buy” rating to a “moderate buy” rating in a report on Friday, April 17th. Wells Fargo & Company increased their target price on Canadian Pacific Kansas City from $90.00 to $100.00 and gave the stock an “overweight” rating in a research report on Wednesday, July 8th. Stephens upgraded Canadian Pacific Kansas City to a “hold” rating in a report on Wednesday, July 8th. Canadian Imperial Bank of Commerce boosted their price target on Canadian Pacific Kansas City from C$140.00 to C$143.00 and gave the company an “outperformer” rating in a research report on Thursday, June 25th. Finally, Barclays set a $102.00 price target on Canadian Pacific Kansas City and gave the stock an “overweight” rating in a research note on Thursday, June 25th. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $108.60.

Canadian Pacific Kansas City Trading Up 1.1%

The company has a debt-to-equity ratio of 0.47, a current ratio of 0.59 and a quick ratio of 0.50. The business’s 50-day moving average price is $89.56 and its 200 day moving average price is $85.21. The firm has a market capitalization of $82.34 billion, a price-to-earnings ratio of 30.14, a PEG ratio of 1.80 and a beta of 1.10.

Canadian Pacific Kansas City (NYSE:CP) (TSE:CP) last announced its earnings results on Wednesday, July 29th. The transportation company reported $0.92 earnings per share for the quarter, beating the consensus estimate of $0.89 by $0.03. Canadian Pacific Kansas City had a return on equity of 9.02% and a net margin of 25.02%.The company had revenue of $2.93 billion during the quarter, compared to the consensus estimate of $2.89 billion. During the same period last year, the firm earned $1.12 earnings per share. The company’s revenue was up 12.6% on a year-over-year basis. On average, equities analysts forecast that Canadian Pacific Kansas City Limited will post 3.7 earnings per share for the current fiscal year.

Canadian Pacific Kansas City Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, October 26th. Shareholders of record on Friday, September 25th will be issued a dividend of $0.268 per share. This represents a $1.07 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend is Friday, September 25th. Canadian Pacific Kansas City’s dividend payout ratio (DPR) is currently 25.08%.

Institutional Investors Weigh In On Canadian Pacific Kansas City

Institutional investors have recently made changes to their positions in the company. Intech Investment Management LLC increased its stake in Canadian Pacific Kansas City by 16.0% during the first quarter. Intech Investment Management LLC now owns 21,276 shares of the transportation company’s stock valued at $1,493,000 after purchasing an additional 2,940 shares during the last quarter. Acadian Asset Management LLC bought a new stake in shares of Canadian Pacific Kansas City during the first quarter valued at approximately $35,000. Sivia Capital Partners LLC bought a new stake in Canadian Pacific Kansas City during the 2nd quarter valued at $206,000. Prudential Financial Inc. lifted its holdings in Canadian Pacific Kansas City by 8.7% in the second quarter. Prudential Financial Inc. now owns 5,183 shares of the transportation company’s stock worth $411,000 after purchasing an additional 415 shares during the period. Finally, EverSource Wealth Advisors LLC lifted its stake in shares of Canadian Pacific Kansas City by 39.3% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,307 shares of the transportation company’s stock worth $104,000 after acquiring an additional 369 shares during the period. 72.20% of the stock is currently owned by institutional investors.

Canadian Pacific Kansas City Company Profile

Canadian Pacific Kansas City (CPKC) is a North American Class I freight railroad formed through the combination of Canadian Pacific Railway and Kansas City Southern. The merged company operates an integrated rail network that spans Canada, the United States and Mexico, providing a single-line rail connection across all three countries. This transborder footprint is intended to streamline cross-border freight flows and provide shippers with direct rail access from Canadian and U.S. production centers to Mexican markets and ports.

CPKC’s core business is freight transportation and related logistics services.