Atlatl Advisers LLC has reduced its stake in Canadian Pacific Kansas City Limited by 30.6% during the second quarter of 2023. According to its recent 13F filing with the Securities and Exchange Commission, the institutional investor now holds 3,055 shares after selling 1,350 shares in the quarter. The value of Atlatl Advisers’ holdings was reported at approximately $242,000 at the conclusion of the latest reporting period.
Other institutional investors have also made significant adjustments to their holdings in Canadian Pacific Kansas City. For instance, Vanguard Group Inc. increased its stake by 1.0% in the first quarter, owning 37,142,988 shares valued at $2.61 billion after purchasing an additional 364,515 shares. TD Asset Management Inc. raised its stake by 0.7%, now holding 21,002,374 shares worth $1.67 billion after acquiring an extra 136,970 shares.
Additionally, Causeway Capital Management LLC expanded its stake by 11.5%, reaching a total of 17,208,788 shares valued at $1.21 billion following the purchase of 1,778,984 shares. Invesco Ltd. saw the most significant increase at 59.5%, now owning 16,984,351 shares valued at $1.19 billion after acquiring 6,337,312 shares. Mackenzie Financial Corp. also increased its holdings by 6.5%, totaling 16,347,804 shares worth $1.15 billion after purchasing an additional 999,522 shares. Overall, institutional investors and hedge funds own approximately 72.20% of the company’s stock.
Wall Street Analysts Assess Canadian Pacific Kansas City
Recent reports from various brokerages have provided insights into the performance of Canadian Pacific Kansas City. National Bank Financial upgraded their rating from “hold” to “strong-buy” on July 30. Meanwhile, Barclays set a target price of $90.00 with an “overweight” rating on October 2. Scotiabank reaffirmed an “outperform” rating on July 10, while Susquehanna lowered its target price from $91.00 to $88.00, maintaining a “positive” outlook.
Investment recommendations vary, with one analyst giving a “strong buy” rating, twelve issuing “buy” ratings, four assigning a “hold” rating, and one issuing a “sell” rating. According to data from MarketBeat, the stock has an average rating of “moderate buy” with an average price target of $91.38.
Recent Stock Performance and Earnings Report
As of Friday, Canadian Pacific Kansas City shares opened at $75.45. The company’s fifty-day simple moving average stood at $75.57, while the two-hundred day simple moving average was $76.93. The firm has a market capitalization of $68.43 billion, a price-to-earnings ratio of 23.50, and a debt-to-equity ratio of 0.45. Over the past year, the stock reached a low of $66.49 and a high of $83.65.
In its latest quarterly earnings report, released on July 30, Canadian Pacific Kansas City reported earnings of $0.81 per share, falling short of the consensus estimate of $0.82 by $0.01. The company generated revenue of $2.72 billion, slightly below analysts’ expectations of $2.76 billion, but marking a 2.7% increase year-over-year. The return on equity was reported at 8.69% with a net margin of 28.05%.
Looking ahead, analysts project that Canadian Pacific Kansas City will achieve earnings of $3.42 per share for the current fiscal year.
In an additional announcement, the company revealed an increase in its quarterly dividend, which is set to be paid on October 27. Shareholders on record as of September 26 will receive a dividend of $0.1651 per share, up from the previous quarterly dividend of $0.16. This adjustment reflects an annualized dividend of $0.66 and a yield of 0.9%, with a dividend payout ratio of 20.56%.
Canadian Pacific Kansas City Limited operates a transcontinental freight railway across Canada, the United States, and Mexico, transporting a diverse range of bulk commodities and consumer goods.
