Canadian National Railway Company (CNI) Stock Rating Lowered by Zacks Investment Research

Canadian National Railway Company (NYSE:CNI) (TSE:CNR) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Friday, October 27th.

According to Zacks, “Shares of Canadian National Railway Company have underperformed the industry it belongs to over the last three months. The stock has gained 2.9%, well below its industry's rally of 9%. Moreover, it has underperformed fellow Canadian railroad operator Canadian Pacific Railway whose shares have gained 10.4% over the last three months. Adding to its woes, Canadian National reported lower-than-expected earnings per share and revenues in the third quarter of 2017. High operating expenses are hurting the company. Deterioration in operating ratio is also a matter of concern. The company’s efforts to reward shareholders through dividend payments and share buybacks are, however, impressive.”

CNI has been the topic of a number of other research reports. Credit Suisse Group reissued a “neutral” rating on shares of Canadian National Railway in a research note on Friday, July 28th. Royal Bank of Canada reissued an “outperform” rating on shares of Canadian National Railway in a research note on Wednesday, October 25th. BidaskClub raised Canadian National Railway from a “sell” rating to a “hold” rating in a research note on Wednesday, August 16th. Stifel Nicolaus reissued a “hold” rating and issued a $89.00 target price on shares of Canadian National Railway in a research note on Friday, October 6th. Finally, Raymond James Financial, Inc. lowered shares of Canadian National Railway from an “outperform” rating to a “market perform” rating in a research report on Wednesday, October 25th. One analyst has rated the stock with a sell rating, ten have given a hold rating and six have issued a buy rating to the stock. Canadian National Railway presently has a consensus rating of “Hold” and an average target price of $79.00.

Canadian National Railway (CNI) traded up $0.35 during trading on Friday, reaching $81.00. The company had a trading volume of 686,300 shares, compared to its average volume of 1,058,240. Canadian National Railway has a fifty-two week low of $62.97 and a fifty-two week high of $84.48. The company has a current ratio of 0.61, a quick ratio of 0.49 and a debt-to-equity ratio of 0.58. The stock has a market capitalization of $60,172.96, a P/E ratio of 20.89, a price-to-earnings-growth ratio of 2.17 and a beta of 1.11.

Canadian National Railway announced that its Board of Directors has authorized a stock buyback plan on Tuesday, October 24th that permits the company to buyback 31,000,000 shares. This buyback authorization permits the transportation company to reacquire shares of its stock through open market purchases. Shares buyback plans are usually a sign that the company’s leadership believes its shares are undervalued.

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Institutional investors and hedge funds have recently made changes to their positions in the stock. UBS Asset Management Americas Inc. purchased a new position in shares of Canadian National Railway during the 1st quarter worth $123,000. Dimensional Fund Advisors LP lifted its stake in shares of Canadian National Railway by 9.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 253,063 shares of the transportation company’s stock valued at $18,709,000 after buying an additional 21,155 shares in the last quarter. Parsons Capital Management Inc. RI lifted its stake in shares of Canadian National Railway by 1.0% during the 1st quarter. Parsons Capital Management Inc. RI now owns 31,773 shares of the transportation company’s stock valued at $2,349,000 after buying an additional 330 shares in the last quarter. City Holding Co. lifted its stake in shares of Canadian National Railway by 15.4% during the 2nd quarter. City Holding Co. now owns 1,313 shares of the transportation company’s stock valued at $106,000 after buying an additional 175 shares in the last quarter. Finally, Atria Investments LLC lifted its stake in shares of Canadian National Railway by 0.7% during the 2nd quarter. Atria Investments LLC now owns 6,121 shares of the transportation company’s stock valued at $496,000 after buying an additional 41 shares in the last quarter. 54.71% of the stock is owned by institutional investors.

About Canadian National Railway

Canadian National Railway Company is engaged in the rail and related transportation business. The Company’s network of approximately 20,000 route miles of track spans Canada and mid-America, connecting approximately three coasts, including the Atlantic, the Pacific and the Gulf of Mexico and serving the cities and ports of Vancouver, Prince Rupert (British Columbia), Montreal, Halifax, New Orleans, and Mobile (Alabama), and the metropolitan areas of Toronto, Edmonton, Winnipeg, Calgary, Chicago, Memphis, Detroit, Duluth (Minnesota)/Superior (Wisconsin), and Jackson (Mississippi), with connections to all points in North America.

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Analyst Recommendations for Canadian National Railway (NYSE:CNI)

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