Encompass Capital Advisors LLC Purchases Shares of 564,311 Canadian Pacific Kansas City Limited (NYSE:CP)

Encompass Capital Advisors LLC acquired a new position in shares of Canadian Pacific Kansas City Limited (NYSE:CP) (TSE:CP) during the 4th quarter, Holdings Channel reports. The fund acquired 564,311 shares of the transportation company’s stock, valued at approximately $40,839,000. Canadian Pacific Kansas City comprises approximately 1.6% of Encompass Capital Advisors LLC’s investment portfolio, making the stock its 26th largest position.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the company. Smartleaf Asset Management LLC raised its position in Canadian Pacific Kansas City by 18.8% during the fourth quarter. Smartleaf Asset Management LLC now owns 839 shares of the transportation company’s stock valued at $60,000 after purchasing an additional 133 shares during the period. Pinnacle Bancorp Inc. raised its holdings in Canadian Pacific Kansas City by 13.6% during the 4th quarter. Pinnacle Bancorp Inc. now owns 1,250 shares of the transportation company’s stock valued at $90,000 after buying an additional 150 shares during the period. Wiser Advisor Group LLC raised its holdings in Canadian Pacific Kansas City by 9.5% during the 4th quarter. Wiser Advisor Group LLC now owns 1,732 shares of the transportation company’s stock valued at $125,000 after buying an additional 150 shares during the period. Advisory Services Network LLC lifted its position in Canadian Pacific Kansas City by 2.2% in the fourth quarter. Advisory Services Network LLC now owns 7,194 shares of the transportation company’s stock worth $521,000 after buying an additional 152 shares during the last quarter. Finally, Transatlantique Private Wealth LLC boosted its stake in Canadian Pacific Kansas City by 1.6% during the fourth quarter. Transatlantique Private Wealth LLC now owns 10,066 shares of the transportation company’s stock worth $728,000 after buying an additional 157 shares during the period. 72.20% of the stock is currently owned by institutional investors.

Canadian Pacific Kansas City Stock Performance

CP stock opened at $73.70 on Friday. The firm has a 50-day simple moving average of $72.97 and a two-hundred day simple moving average of $75.13. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.46 and a current ratio of 0.53. Canadian Pacific Kansas City Limited has a one year low of $66.49 and a one year high of $87.72. The firm has a market cap of $68.56 billion, a price-to-earnings ratio of 25.41, a PEG ratio of 2.00 and a beta of 1.09.

Canadian Pacific Kansas City (NYSE:CP) (TSE:CP) last released its quarterly earnings results on Wednesday, April 30th. The transportation company reported $0.74 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.74. Canadian Pacific Kansas City had a net margin of 25.51% and a return on equity of 8.86%. The business had revenue of $2.66 billion for the quarter, compared to analyst estimates of $2.56 billion. During the same period in the previous year, the company earned $0.93 earnings per share. The business’s revenue for the quarter was up 8.0% on a year-over-year basis. On average, equities analysts forecast that Canadian Pacific Kansas City Limited will post 3.42 EPS for the current fiscal year.

Canadian Pacific Kansas City Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, July 28th. Shareholders of record on Friday, June 27th will be issued a $0.1644 dividend. This represents a $0.66 annualized dividend and a yield of 0.89%. The ex-dividend date is Friday, June 27th. This is an increase from Canadian Pacific Kansas City’s previous quarterly dividend of $0.13. Canadian Pacific Kansas City’s dividend payout ratio (DPR) is currently 21.28%.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on CP. Barclays lowered their target price on shares of Canadian Pacific Kansas City from $91.00 to $87.00 and set an “overweight” rating for the company in a report on Wednesday, April 2nd. Jefferies Financial Group dropped their target price on Canadian Pacific Kansas City from $100.00 to $90.00 and set a “buy” rating for the company in a research report on Wednesday, April 9th. Benchmark reiterated a “hold” rating on shares of Canadian Pacific Kansas City in a report on Thursday, January 30th. Royal Bank of Canada cut their price objective on Canadian Pacific Kansas City from $122.00 to $121.00 and set an “outperform” rating on the stock in a research report on Thursday, May 1st. Finally, Stephens lifted their target price on Canadian Pacific Kansas City from $88.00 to $92.00 and gave the stock an “overweight” rating in a research report on Thursday, January 30th. Two investment analysts have rated the stock with a sell rating, three have given a hold rating and eleven have issued a buy rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $90.71.

About Canadian Pacific Kansas City

Canadian Pacific Kansas City Limited, together with its subsidiaries, owns and operates a transcontinental freight railway in Canada, the United States, and Mexico. The company transports bulk commodities, including grain, coal, potash, fertilizers, and sulphur; merchandise freight, such as forest products, energy, chemicals and plastics, metals, minerals, consumer products, and automotive; and intermodal traffic comprising retail goods in overseas containers.