Zacks Investment Research upgraded shares of Canadian National Railway (NYSE:CNI) (TSE:CNR) from a sell rating to a hold rating in a research note released on Monday morning.
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. Results will be available on Jan 23. The company's efforts to reward shareholders through dividend payments and share buybacks are also impressive. However, high fuel costs might hurt the company's fourth-quarter results as well, as was the case in the previous quarter. 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. Shares of the company have underperformed its industry in the last three months.”
A number of other research analysts also recently weighed in on CNI. Cowen restated a buy rating and issued a $83.00 price target on shares of Canadian National Railway in a research note on Sunday, September 24th. Stifel Nicolaus restated a hold rating and issued a $89.00 price target on shares of Canadian National Railway in a research note on Friday, October 6th. Royal Bank of Canada restated an outperform rating on shares of Canadian National Railway in a research note on Wednesday, October 25th. Desjardins upgraded Canadian National Railway from a hold rating to a buy rating in a research note on Wednesday, October 25th. Finally, Raymond James Financial downgraded Canadian National Railway from an outperform rating to a market perform rating in a research note on Wednesday, October 25th. One investment analyst has rated the stock with a sell rating, nine have issued a hold rating and eight have issued a buy rating to the company’s stock. The stock currently has an average rating of Hold and a consensus price target of $79.67.
Canadian National Railway (NYSE:CNI) traded up $0.13 during mid-day trading on Monday, reaching $80.56. The company’s stock had a trading volume of 1,457,800 shares, compared to its average volume of 1,182,025. 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 $60,040.00, a P/E ratio of 19.60, a price-to-earnings-growth ratio of 2.00 and a beta of 1.09. Canadian National Railway has a 12-month low of $68.27 and a 12-month high of $85.73.
Canadian National Railway (NYSE:CNI) (TSE:CNR) last posted its quarterly earnings results on Tuesday, October 24th. The transportation company reported $1.05 earnings per share for the quarter, missing the Zacks’ consensus estimate of $1.06 by ($0.01). Canadian National Railway had a net margin of 29.98% and a return on equity of 25.57%. equities analysts forecast that Canadian National Railway will post 3.96 EPS for the current fiscal year.
Canadian National Railway announced that its board has initiated a share buyback plan on Tuesday, October 24th that allows the company to repurchase 31,000,000 shares. This repurchase authorization allows the transportation company to repurchase shares of its stock through open market purchases. Shares repurchase plans are usually an indication that the company’s leadership believes its stock is undervalued.
The firm also recently disclosed a quarterly dividend, which was paid on Friday, December 29th. Stockholders of record on Friday, December 8th were given a $0.3304 dividend. This represents a $1.32 dividend on an annualized basis and a dividend yield of 1.64%. This is a boost from Canadian National Railway’s previous quarterly dividend of $0.33. The ex-dividend date of this dividend was Thursday, December 7th. Canadian National Railway’s dividend payout ratio (DPR) is presently 31.87%.
Several institutional investors and hedge funds have recently added to or reduced their stakes in CNI. Harding Loevner LP lifted its position in shares of Canadian National Railway by 2,838.1% in the third quarter. Harding Loevner LP now owns 180,965,047 shares of the transportation company’s stock valued at $366,305,000 after buying an additional 174,805,844 shares during the last quarter. Arrowstreet Capital Limited Partnership lifted its holdings in Canadian National Railway by 363.0% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 5,913,974 shares of the transportation company’s stock worth $479,249,000 after purchasing an additional 4,636,737 shares during the last quarter. Vanguard Group Inc. lifted its holdings in Canadian National Railway by 15.5% during the 2nd quarter. Vanguard Group Inc. now owns 16,793,837 shares of the transportation company’s stock worth $1,361,140,000 after purchasing an additional 2,251,612 shares during the last quarter. APG Asset Management N.V. lifted its holdings in Canadian National Railway by 50.6% during the 3rd quarter. APG Asset Management N.V. now owns 1,720,175 shares of the transportation company’s stock worth $142,193,000 after purchasing an additional 578,200 shares during the last quarter. Finally, Great West Life Assurance Co. Can lifted its holdings in Canadian National Railway by 10.6% during the 3rd quarter. Great West Life Assurance Co. Can now owns 5,048,417 shares of the transportation company’s stock worth $417,514,000 after purchasing an additional 482,544 shares during the last quarter. 53.73% of the stock is owned by institutional investors.
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Canadian National Railway Company Profile
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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