Canadian National Railway (NYSE:CNI) Cut to Sell at Zacks Investment Research

Zacks Investment Research downgraded shares of Canadian National Railway (NYSE:CNI) (TSE:CNR) from a hold rating to a sell rating in a research report released on Thursday, Zacks.com reports. They currently have $99.00 price target on the transportation company’s stock.

According to Zacks, “Canadian National delivered better-than-expected earnings in third-quarter of 2019. Moreover, the bottom line improved year over year. Freight revenues too climbed 4% year over year and aided the top line. Improvement in the operating ratio in the third quarter is also encouraging. The company’s efforts to add shareholder value is another positive. During the first nine months of 2019, Canadian National repurchased shares worth $1.27 billion. However, sluggish global economy is affecting its volumes. As a result, the company now anticipates RTMs to witness negative volume growth in the current year compared with the earlier prediction of a mid-single-digit volume expansion. The company has also lowered its earnings expectation for 2019. Shares of the company have underperformed its industry in a year's time, mainly due to soft volumes.”

Several other equities research analysts have also recently issued reports on the company. Credit Suisse Group lifted their price objective on Canadian National Railway from $101.00 to $104.00 and gave the stock an outperform rating in a report on Wednesday, July 24th. Royal Bank of Canada set a $137.00 target price on Canadian National Railway and gave the stock a hold rating in a report on Friday, September 13th. ValuEngine cut Canadian National Railway from a buy rating to a hold rating in a report on Thursday, August 1st. Stephens cut Canadian National Railway from an overweight rating to an equal rating and lowered their target price for the stock from $100.00 to $97.00 in a report on Tuesday, October 1st. Finally, BMO Capital Markets upgraded Canadian National Railway from a market perform rating to an outperform rating in a report on Friday, November 1st. One investment analyst has rated the stock with a sell rating, twelve have given a hold rating and five have given a buy rating to the company’s stock. Canadian National Railway currently has an average rating of Hold and an average price target of $102.59.

CNI stock traded down $0.17 during trading on Thursday, hitting $94.64. The stock had a trading volume of 799,491 shares, compared to its average volume of 879,536. The company has a debt-to-equity ratio of 0.65, a current ratio of 0.71 and a quick ratio of 0.57. Canadian National Railway has a twelve month low of $70.36 and a twelve month high of $96.49. The stock has a market capitalization of $68.03 billion, a P/E ratio of 22.75, a PEG ratio of 2.06 and a beta of 1.01. The company’s 50-day moving average price is $88.64 and its two-hundred day moving average price is $91.55.

Canadian National Railway (NYSE:CNI) (TSE:CNR) last posted its quarterly earnings data on Tuesday, October 22nd. The transportation company reported $1.66 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.27 by $0.39. Canadian National Railway had a return on equity of 24.36% and a net margin of 29.62%. The company had revenue of $3.81 billion for the quarter, compared to analysts’ expectations of $3.87 billion. During the same period in the previous year, the firm posted $1.50 EPS. Canadian National Railway’s revenue was up 3.3% compared to the same quarter last year. As a group, sell-side analysts expect that Canadian National Railway will post 4.56 EPS for the current fiscal year.

The business also recently announced a quarterly dividend, which will be paid on Monday, December 30th. Stockholders of record on Monday, December 9th will be issued a dividend of $0.406 per share. This represents a $1.62 annualized dividend and a dividend yield of 1.72%. The ex-dividend date is Friday, December 6th. Canadian National Railway’s dividend payout ratio is currently 39.18%.

Several hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its position in shares of Canadian National Railway by 2.7% during the 2nd quarter. Vanguard Group Inc. now owns 20,351,547 shares of the transportation company’s stock valued at $1,882,111,000 after buying an additional 535,990 shares during the period. Beutel Goodman & Co Ltd. raised its position in shares of Canadian National Railway by 6.2% during the 3rd quarter. Beutel Goodman & Co Ltd. now owns 4,772,816 shares of the transportation company’s stock valued at $17,446,000 after buying an additional 277,486 shares during the period. JPMorgan Chase & Co. raised its position in shares of Canadian National Railway by 37.4% during the 2nd quarter. JPMorgan Chase & Co. now owns 3,683,848 shares of the transportation company’s stock valued at $337,220,000 after buying an additional 1,001,851 shares during the period. William Blair Investment Management LLC raised its position in shares of Canadian National Railway by 2.7% during the 2nd quarter. William Blair Investment Management LLC now owns 3,523,264 shares of the transportation company’s stock valued at $325,777,000 after buying an additional 92,187 shares during the period. Finally, Swiss National Bank raised its position in shares of Canadian National Railway by 4.6% during the 2nd quarter. Swiss National Bank now owns 2,667,800 shares of the transportation company’s stock valued at $246,888,000 after buying an additional 117,500 shares during the period. 53.26% of the stock is currently owned by hedge funds and other institutional investors.

Canadian National Railway Company Profile

Canadian National Railway Company engages in rail and related transportation business. The company transports cargo serving exporters, importers, retailers, farmers, and manufacturers. It operates a network of approximately 20,000 route miles of track spans Canada and mid-America connecting the Atlantic, the Pacific, and the Gulf of Mexico.

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