Canadian National Railway (NYSE:CNI) (TSE:CNR) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued to clients and investors on Thursday, January 4th.
According to Zacks, “Canadian National Railway Company's fourth-quarter results should benefit from volume growth at its key units like Overseas Intermodal, Frac sand, Coal and Petroleum coke exports, and Canadian grain. Rail freight revenues should also rise substantially in the quarter. The company's efforts to reward shareholders through dividend payments and share buybacks are also impressive. Additionally, the $2.6 billion capital plan announced by the company in April 2017 is aslo encouraging. However, high high fuel costs might hurt the company's fourth-quarter results as well. Deterioration in operating ratio is also a matter of concern. Declining revenues at the forest products, and grain and fertilizers segment might hurt the top line going forward. The company's high debt levels further adds to its woes. In fact, shares of the company have underperformed its industry over the last three months.”
CNI has been the topic of a number of other research reports. Royal Bank of Canada reiterated an “outperform” rating on shares of Canadian National Railway in a research report on Wednesday, October 25th. Goldman Sachs Group assumed coverage on Canadian National Railway in a report on Monday, November 13th. They set a “buy” rating and a $85.00 price target on the stock. Stifel Nicolaus restated a “hold” rating and set a $89.00 price target on shares of Canadian National Railway in a report on Friday, October 6th. TD Securities upgraded Canadian National Railway from a “hold” rating to a “buy” rating in a report on Thursday, November 30th. They noted that the move was a valuation call. Finally, CIBC upgraded Canadian National Railway from a “neutral” rating to a “sector outperform” rating in a report on Wednesday, November 8th. One analyst has rated the stock with a sell rating, ten have issued a hold rating and eight have assigned a buy rating to the stock. The company has a consensus rating of “Hold” and an average price target of $79.67.
Canadian National Railway (NYSE:CNI) traded down $2.84 during trading on Thursday, reaching $81.17. The company’s stock had a trading volume of 1,935,400 shares, compared to its average volume of 1,017,843. Canadian National Railway has a 1 year low of $68.27 and a 1 year high of $85.73. The company has a debt-to-equity ratio of 0.58, a quick ratio of 0.49 and a current ratio of 0.61. The company has a market capitalization of $60,700.00, a PE ratio of 19.94, a PEG ratio of 2.11 and a beta of 1.09.
Canadian National Railway announced that its Board of Directors has approved a stock buyback plan on Tuesday, October 24th that authorizes the company to repurchase 31,000,000 outstanding shares. This repurchase authorization authorizes the transportation company to purchase shares of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s board of directors believes its stock is undervalued.
A number of hedge funds have recently made changes to their positions in the stock. Bronfman E.L. Rothschild L.P. boosted its holdings in Canadian National Railway by 0.9% in the second quarter. Bronfman E.L. Rothschild L.P. now owns 1,416 shares of the transportation company’s stock valued at $115,000 after acquiring an additional 12 shares during the last quarter. Hall Laurie J Trustee boosted its holdings in Canadian National Railway by 4.1% in the second quarter. Hall Laurie J Trustee now owns 1,275 shares of the transportation company’s stock valued at $103,000 after acquiring an additional 50 shares during the last quarter. Suntrust Banks Inc. boosted its holdings in Canadian National Railway by 0.6% in the second quarter. Suntrust Banks Inc. now owns 8,385 shares of the transportation company’s stock valued at $679,000 after acquiring an additional 52 shares during the last quarter. Financial Counselors Inc. boosted its holdings in Canadian National Railway by 0.9% in the second quarter. Financial Counselors Inc. now owns 5,719 shares of the transportation company’s stock valued at $464,000 after acquiring an additional 53 shares during the last quarter. Finally, Freestone Capital Holdings LLC boosted its holdings in Canadian National Railway by 1.4% in the second quarter. Freestone Capital Holdings LLC now owns 5,121 shares of the transportation company’s stock valued at $415,000 after acquiring an additional 69 shares during the last quarter. Institutional investors and hedge funds own 53.73% of the company’s stock.
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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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