Canadian Pacific Kansas City Limited (NYSE:CP) finished Wednesday with an addition of $0.42 to close at $81.17, an upside of 0.52 percent. An average of 2,229,400 shares of common stock have been traded in the last five days. There was a gain of $1.08 in the past week, and it reached a new high 9 times over the past 12 months. The last 20 days have seen an average of 2,531,245 shares traded, while the 50-day average volume stands at 2,285,148.
CP stock has increased by 3.60% in the last month. The company shares reached their 1-month lowest point of $77.58 on 07/11/23. With the stock rallying to its 52-week high on 07/28/23, shares of the company touched a low of $65.17 and a high of $85.40 in 52 weeks. It has reached a new high 15 times so far this year and achieved 8.82% or $6.58 in price. In spite of this, the price is down -4.95% from the 52-week high.
Valuation Metrics
Canadian Pacific Kansas City Limited (CP) has a trailing price-to-earnings (P/E) ratio of 17.68. The stock’s beta is 1.01. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 9.90, the price-to-book (PB) ratio at 1.89, and the price-to-cash flow ratio at 53.60.
The company has a payout ratio of 16.50%. The company’s most recent quarterly dividend payment was $0.1437 a share, representing a up of 1.91% from $0.1410 last year. Its latest increase dividend $0.0027 reported on Thursday July 27 2023.
Financial Health
The quick ratio of Canadian Pacific Kansas City Limited for the three months ended June 29 was 0.60, and the current ratio was 0.70, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.53 and a total debt to equity ratio of 0.58 for the quarter ending June 29. Canadian Pacific Kansas City Limited’s EBITDA margin for the year ending June 29 is 48.11%, while its operating margin for the same period stands at -34.20%. Its gross profit as reported stood at $4.53 billion compared to revenue of $6.78 billion.
Earnings Surprise
For the three-month period that ended June 29, Canadian Pacific Kansas City Limited had $202.22 million in cash and short-term investments compared to $16.36 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $1.01 billion in the quarter, while revenues of $612.8 million were grew 42.22%. The analyst consensus anticipated Canadian Pacific Kansas City Limited’s latest quarter earnings to come in at $0.71 per share, but it turned out to be $0.62, a -12.70% surprise. For the quarter, EBITDA amounted to $1.01 billion.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Canadian Pacific Kansas City Limited (CP) price momentum. RSI 9-day as of the close on 09 August was 49.84%, suggesting the stock is Neutral, with historical volatility in this time frame at 17.32%.
As of today, CP’s price is $81.06 +1.35% or $1.08 from its 5-day moving average. CP is currently trading +2.24% higher than its 20-day SMA and +1.90% higher than its 100-day SMA. However, the stock’s current price level is +5.35% above the SMA50 and +17.72% above the SMA200.
The stochastic %K and %D were 30.41% and 29.40%, respectively, and the average true range (ATR) was 1.55. With the 14-day stochastic at 30.08% and the average true range at 1.56, the RSI (14) stands at 51.47%. The stock has reached -0.14 on the 9-day MACD Oscillator while the 14-day reading was at -0.64.
Analyst Ratings
Argus upgraded Canadian Pacific Kansas City Limited (NYSE: CP) to a a Buy rating in its most recent analyst report. Previously, the stock was rated as a Hold. The consensus rating for Canadian Pacific Kansas City Limited (CP) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell CP, while 9 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 2 analysts, while 21 others rate it as a “buy”.
What is CP’s price target for the next 12 months?
Analysts predict a range of price targets between $104.55 and $164.11, with a median target of $120.00. Taking a look at these predictions, the average price target given by analysts for Canadian Pacific Kansas City Limited (CP) stock is $122.81.
