This recent increase in ownership makes Canadian Pacific Kansas City the fourth largest holding for CIBC Asset Management Inc. The value of this stake is estimated to be around $684,562,000 as of the most recent SEC filing. This significant investment demonstrates CIBC Asset Management Inc’s confidence in the future prospects of Canadian Pacific Kansas City.
On July 27th, Canadian Pacific Kansas City released its quarterly earnings results. The transportation company reported earnings per share (EPS) of $0.62 for the quarter. This figure fell short of analysts’ consensus estimates by ($0.07), as they were expecting EPS of $0.69. Despite this disappointment, Canadian Pacific Kansas City still managed to achieve a return on equity of 8.92% and a net margin of 41.92%. Additionally, its revenue for the quarter amounted to $2.36 billion, slightly lower than the consensus estimate of $2.47 billion.
Considering these financial results and current market conditions, equities analysts predict that Canadian Pacific Kansas City Limited will post EPS of 2.93 for the current year on average.
The recent developments concerning CIBC Asset Management Inc’s increased stake in Canadian Pacific Kansas City Limited highlight potential growth opportunities in the transportation industry sector for investors looking to diversify their portfolios and generate long-term returns.
Investors are advised to conduct thorough research and analysis before making any investment decisions regarding specific stocks or companies. Market conditions are subject to change, and it is essential to stay informed through credible sources when considering any investment options.
Overall, the actions of CIBC Asset Management Inc serve as a testament to the potential of Canadian Pacific Kansas City Limited as an attractive investment opportunity in the transportation industry. As always, investors should exercise caution and consult with professional financial advisors before making any investment decisions.
Hedge Funds Increase Stakes in Canadian Pacific Kansas City
In recent months, there has been a significant increase in hedge funds adjusting their stakes in Canadian Pacific Kansas City (CP), with several either adding to or reducing their positions. Stonebridge Capital Advisors LLC, for example, raised its stake in the transportation company by an astonishing 750% during the fourth quarter of the previous year. This surge saw the firm’s ownership of CP increase to 340 shares, which are currently valued at $25,000. Similarly, BerganKDV Wealth Management LLC experienced a staggering 193.9% rise in its stake in CP during the first quarter, amounting to 338 shares worth $26,000.
The interest from institutional investors and hedge funds in acquiring stakes from Canadian Pacific Kansas City has not waned. Kayne Anderson Rudnick Investment Management LLC obtained a new stake worth $29,000 during the third quarter of last year, while Motco secured a position worth $32,000 during the same period. Central Bank & Trust Co., on the other hand, purchased a new stake valued at $38,000.
Considering these developments, it is estimated that institutional investors and hedge funds now own nearly 68% of Canadian Pacific Kansas City’s stock. This substantial ownership highlights the market’s confidence and trust in this transportation company’s potential for growth and profitability.
On Monday’s mid-day trading session on September 5th, 2023, shares of Canadian Pacific Kansas City were observed to have traded up at $80.37. The trading volume amounted to approximately 1,358,700 shares compared to its average daily trading volume of 2,000,495 shares. Over the past year alone, CP’s stock has fluctuated between a low point of $65.17 and a high point of $85.40.
Analyzing CP further reveals vital financial statistics that provide insight into the company’s current standing. With a current ratio of 0.67 and a quick ratio of 0.58, Canadian Pacific Kansas City indicates that it possesses adequate resources to cover its short-term obligations. Additionally, the transportation company maintains a debt-to-equity ratio of 0.52, suggesting a balanced level of capital structure.
Furthermore, Canadian Pacific Kansas City holds a market capitalization of $74.86 billion. With a price-to-earnings (PE) ratio of 23.36 and a price-to-earnings-growth (PEG) ratio of 2.79, investors are alerted to the stock’s valuation relative to its earnings performance and growth potential. Positioned with a beta coefficient of 1.01, the company is subject to moderate systematic risk characteristic of the overall market conditions.
Recent company news also revolves around Canadian Pacific Kansas City’s declaration of its quarterly dividend, which will be paid on Monday, October 30th. Investors who held shares on Friday, September 29th will be issued a dividend amounting to $0.1437 per share. Notably, this represents an increase from the previous quarterly dividend payout of $0.14 per share. Considering these figures, CP’s dividend payout ratio (DPR) currently stands at 16.57%.
Amidst these developments surrounding Canadian Pacific Kansas City, analysts have provided their insights on CP’s performance and prospects for future growth. StockNews.com initiated coverage on CP with a “hold” rating while Argus upgraded it from “hold” to “buy” with a price target set at $92 per share in an earlier research note from May 16th.
The Goldman Sachs Group followed suit by issuing a “buy” rating on the stock in June while CSFB and Credit Suisse Group both gave the company neutral ratings but lifted their respective price targets up to $88 per share.
In aggregate, five investment analysts have chosen to “hold” the stock while twelve others maintain overwhelmingly positive views with “buy” ratings. With a consensus rating of “Moderate Buy” and an average target price of $92 per share, according to Bloomberg data, Canadian Pacific Kansas City continues to warrant significant attention from investors seeking opportunities within the transportation sector.
The post CIBC Asset Management Inc Increases Stake in Canadian Pacific Kansas City Limited: Potential Growth Opportunity in the Transportation Industry appeared first on Best Stocks.
