Canadian Pacific Kansas City (TSE:CP) Posts Earnings Results

Canadian Pacific Kansas City (TSE:CP) (NYSE:CP) announced its earnings results on Wednesday. The company reported C$1.28 earnings per share (EPS) for the quarter, FiscalAI reports. The firm had revenue of C$4.22 billion during the quarter. Canadian Pacific Kansas City had a net margin of 24.14% and a return on equity of 8.37%.

Canadian Pacific Kansas City Stock Performance

Shares of CP opened at C$123.70 on Friday. The stock’s fifty day moving average price is C$124.56 and its two-hundred day moving average price is C$119.18. Canadian Pacific Kansas City has a 1 year low of C$96.50 and a 1 year high of C$133.38. The firm has a market cap of C$108.74 billion, a PE ratio of 28.77, a PEG ratio of 2.32 and a beta of 1.33. The company has a debt-to-equity ratio of 56.46, a current ratio of 0.52 and a quick ratio of 0.42.

Canadian Pacific Kansas City Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, October 26th. Stockholders of record on Monday, October 26th were paid a dividend of $0.2680 per share. The ex-dividend date was Friday, September 25th. This represents a $1.07 annualized dividend and a dividend yield of 0.9%. Canadian Pacific Kansas City’s dividend payout ratio (DPR) is presently 22.14%.

Canadian Pacific Kansas City News Summary

Here are the key news stories impacting Canadian Pacific Kansas City this week:

• Positive Sentiment: Analysts remain broadly bullish. CIBC raised its price target to C$150 from C$143, while Scotia lifted its target to C$144 from C$143 and National Bank Financial increased its target to C$142 from C$140. ATB Cormark also maintains an “outperform” rating with a C$144 target, and Desjardins maintains a “buy” rating with a C$141 target. These targets imply meaningful upside from the referenced C$123.70 share price. Analyst target revisions
• Positive Sentiment: Higher volumes and a coal-service agreement supported third-quarter revenue. CP reported quarterly revenue of C$4.22 billion, with coverage pointing to volume-driven growth. The company also renewed its rail-service agreement with Elk Valley Resources, helping reinforce its exposure to coal-related freight. Elk Valley Resources rail-service agreement
• Neutral Sentiment: Third-quarter results were mixed. CP reported C$1.28 in earnings per share and C$4.22 billion in revenue. Revenue benefited from higher volumes, but results were tempered by increased fuel costs, leaving profits broadly flat. Third-quarter earnings results
• Negative Sentiment: One target revision highlights valuation risk. Citigroup raised its target to C$106 from C$102 but retained a “buy” rating; the new target remains below the referenced share price. This contrasts with the more optimistic targets from most other analysts and may weigh on sentiment. Citigroup rating and price target

Insider Buying and Selling

In related news, insider Laird Joseph Pitz sold 24,630 shares of the firm’s stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of C$135.08, for a total value of C$3,327,020.40. Also, insider Pamela Lynne Arpin sold 1,385 shares of the firm’s stock in a transaction dated Friday, August 21st. The stock was sold at an average price of C$132.92, for a total value of C$184,094.20. Following the completion of the sale, the insider directly owned 4,578 shares in the company, valued at C$608,507.76. The trade was a 23.23% decrease in their ownership of the stock. In the last quarter, insiders have sold 78,015 shares of company stock valued at $10,505,115. Corporate insiders own 0.03% of the company’s stock.

Analyst Ratings Changes

Several research firms have commented on CP. BMO Capital Markets increased their target price on shares of Canadian Pacific Kansas City from C$142.00 to C$145.00 and gave the stock an “outperform” rating in a research report on Thursday, July 30th. Scotia boosted their target price on shares of Canadian Pacific Kansas City from C$143.00 to C$144.00 and gave the stock an “outperform” rating in a research note on Thursday. Stifel Nicolaus set a C$150.00 price target on Canadian Pacific Kansas City and gave the company a “buy” rating in a research note on Tuesday. National Bank Financial boosted their price target on Canadian Pacific Kansas City from C$140.00 to C$142.00 and gave the company an “outperform” rating in a report on Thursday. Finally, Raymond James Financial set a C$144.00 price target on Canadian Pacific Kansas City and gave the stock an “outperform” rating in a report on Monday, October 19th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, Canadian Pacific Kansas City presently has an average rating of “Moderate Buy” and a consensus target price of C$139.41.

Canadian Pacific Kansas City Company Profile

With its global headquarters in Calgary, Alta., Canada, CPKC is the first and only single-line transnational railway linking Canada, the United States and México, with unrivaled access to major ports from Vancouver to Atlantic Canada to the Gulf Coast to Lázaro Cárdenas, México. Stretching approximately 20,000 route miles and employing 20,000 railroaders, CPKC provides North American customers unparalleled rail service and network reach to key markets across the continent. CPKC is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise.