According to Zacks, “Kansas City Southern, with its wide cross-country network, remains focused on growing opportunities in cross-border intermodal businesses between the U.S. and Mexico. The company has a dominant position on the U.S.-Mexico routes. Moreover, the company’s consistent efforts to expand its business, its ability to hike prices and efforts to reduce costs continue to impress. We are also impressed by the company's efforts to reward its shareholders. However, like most railroads, the company has been adversely affected by weakness in the energy segment. The Mexican peso depreciation is another headwind. However, the company's top line is expected to improve in the second half of the year.”
A number of other equities research analysts have also weighed in on KSU. RBC Capital Markets restated an outperform rating and issued a $114.00 price objective (up from $109.00) on shares of Kansas City Southern in a report on Wednesday, July 20th. Barclays PLC raised their price objective on shares of Kansas City Southern from $73.00 to $79.00 and gave the company an underweight rating in a report on Wednesday, July 20th. Credit Suisse Group AG restated a neutral rating and issued a $101.00 price objective (up from $99.00) on shares of Kansas City Southern in a report on Friday, July 22nd. Citigroup Inc. raised their price objective on shares of Kansas City Southern from $109.00 to $110.00 and gave the company a buy rating in a report on Tuesday, September 13th. Finally, Oppenheimer Holdings Inc. assumed coverage on shares of Kansas City Southern in a report on Wednesday, June 15th. They issued an outperform rating and a $87.32 price objective on the stock. One analyst has rated the stock with a sell rating, ten have given a hold rating, ten have issued a buy rating and one has given a strong buy rating to the stock. The stock presently has an average rating of Buy and a consensus target price of $100.92.
Kansas City Southern (NYSE:KSU) opened at 92.02 on Wednesday. Kansas City Southern has a 52-week low of $62.20 and a 52-week high of $100.69. The firm has a market capitalization of $9.94 billion, a P/E ratio of 20.03 and a beta of 1.14. The company’s 50-day moving average is $94.18 and its 200-day moving average is $92.47.
Kansas City Southern (NYSE:KSU) last released its earnings results on Tuesday, July 19th. The company reported $1.22 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $1.08 by $0.14. The company had revenue of $569 million for the quarter, compared to analyst estimates of $572.20 million. Kansas City Southern had a net margin of 21.13% and a return on equity of 12.00%. On average, analysts predict that Kansas City Southern will post $4.73 EPS for the current year.
The business also recently disclosed a quarterly dividend, which was paid on Wednesday, October 5th. Investors of record on Monday, September 12th were paid a $0.33 dividend. This represents a $1.32 annualized dividend and a dividend yield of 1.43%. The ex-dividend date of this dividend was Thursday, September 8th. Kansas City Southern’s dividend payout ratio (DPR) is 28.82%.
In related news, SVP William J. Wochner sold 26,521 shares of the firm’s stock in a transaction dated Wednesday, July 20th. The shares were sold at an average price of $98.32, for a total value of $2,607,544.72. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Patrick J. Ottensmeyer sold 5,000 shares of the firm’s stock in a transaction dated Thursday, August 4th. The shares were sold at an average price of $95.62, for a total transaction of $478,100.00. Following the completion of the sale, the chief executive officer now owns 90,228 shares of the company’s stock, valued at approximately $8,627,601.36. The disclosure for this sale can be found here. 0.86% of the stock is currently owned by corporate insiders.
Hedge funds have recently made changes to their positions in the stock. First American Trust FSB boosted its stake in shares of Kansas City Southern by 43.8% in the third quarter. First American Trust FSB now owns 45,952 shares of the company’s stock valued at $4,289,000 after buying an additional 13,986 shares during the period. Washington Trust Bank boosted its position in shares of Kansas City Southern by 3.2% in the third quarter. Washington Trust Bank now owns 1,651 shares of the company’s stock worth $154,000 after buying an additional 51 shares during the last quarter. Macquarie Group Ltd. boosted its position in shares of Kansas City Southern by 10.4% in the second quarter. Macquarie Group Ltd. now owns 44,750 shares of the company’s stock worth $4,032,000 after buying an additional 4,200 shares during the last quarter. Kentucky Retirement Systems Insurance Trust Fund acquired a new position in shares of Kansas City Southern during the second quarter worth about $393,000. Finally, Kentucky Retirement Systems acquired a new position in shares of Kansas City Southern during the second quarter worth about $827,000. Hedge funds and other institutional investors own 91.32% of the company’s stock.
Kansas City Southern Company Profile
Kansas City Southern (KCS) is a transportation holding company with domestic and international rail operations in North America that are focused on the north/south freight corridor connecting commercial and industrial markets in the central United States with industrial cities in Mexico. The Company controls and owns The Kansas City Southern Railway Company (KCSR), a United States Class I railroad that serves a 10-state region in the midwest and southeast regions of the United States and has the shortest north/south rail route between Kansas City, Missouri and several key ports along the Gulf of Mexico in Alabama, Louisiana, Mississippi and Texas.
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