Zacks Investment Research upgraded shares of Kansas City Southern (NYSE:KSU) from a hold rating to a buy rating in a research note published on Tuesday. They currently have $101.00 target price on the stock.
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.”
Several other research analysts have also recently issued reports on the stock. Bank of America Corp. reiterated a buy rating on shares of Kansas City Southern in a report on Tuesday, July 12th. Citigroup Inc. reiterated a buy rating and set a $108.00 target price on shares of Kansas City Southern in a report on Wednesday, July 6th. Loop Capital reiterated a buy rating and set a $115.00 target price on shares of Kansas City Southern in a report on Monday, August 15th. TheStreet upgraded shares of Kansas City Southern from a hold rating to a buy rating in a report on Thursday, July 28th. Finally, Royal Bank Of Canada increased their target price on shares of Kansas City Southern from $109.00 to $114.00 and gave the stock an outperform rating in a report on Wednesday, July 20th. One research analyst has rated the stock with a sell rating, ten have assigned a hold rating, eleven have assigned a buy rating and one has given a strong buy rating to the stock. The company has an average rating of Buy and an average price target of $100.82.
Kansas City Southern (NYSE:KSU) opened at 89.65 on Tuesday. The stock has a market capitalization of $9.68 billion, a PE ratio of 19.51 and a beta of 1.13. The stock’s 50 day moving average is $95.63 and its 200 day moving average is $91.96. Kansas City Southern has a 12-month low of $62.20 and a 12-month high of $100.69.
Kansas City Southern (NYSE:KSU) last issued its earnings results on Tuesday, July 19th. The company reported $1.22 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.08 by $0.14. Kansas City Southern had a net margin of 21.13% and a return on equity of 12.00%. The company had revenue of $569 million for the quarter, compared to analysts’ expectations of $572.20 million. Equities analysts anticipate that Kansas City Southern will post $4.78 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 5th. Stockholders of record on Monday, September 12th will be issued a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a dividend yield of 1.47%. The ex-dividend date of this dividend is Thursday, September 8th. Kansas City Southern’s dividend payout ratio (DPR) is 28.82%.
In related news, CEO Patrick J. Ottensmeyer sold 5,000 shares of Kansas City Southern stock in a transaction on Thursday, August 4th. The shares were sold at an average price of $95.62, for a total value of $478,100.00. Following the sale, the chief executive officer now owns 90,228 shares of the company’s stock, valued at approximately $8,627,601.36. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider David L. Starling sold 5,100 shares of Kansas City Southern stock in a transaction on Wednesday, July 20th. The shares were sold at an average price of $98.88, for a total transaction of $504,288.00. The disclosure for this sale can be found here. Insiders own 0.86% of the company’s stock.
A number of large investors have recently added to or reduced their stakes in the stock. Investment House LLC boosted its stake in Kansas City Southern by 0.9% in the second quarter. Investment House LLC now owns 2,572 shares of the company’s stock worth $232,000 after buying an additional 22 shares in the last quarter. Capstone Asset Management Co. boosted its stake in Kansas City Southern by 0.4% in the second quarter. Capstone Asset Management Co. now owns 7,827 shares of the company’s stock worth $705,000 after buying an additional 30 shares in the last quarter. Commerzbank Aktiengesellschaft FI boosted its stake in Kansas City Southern by 2.0% in the second quarter. Commerzbank Aktiengesellschaft FI now owns 3,257 shares of the company’s stock worth $293,000 after buying an additional 63 shares in the last quarter. Cambridge Investment Research Advisors Inc. boosted its stake in Kansas City Southern by 0.7% in the second quarter. Cambridge Investment Research Advisors Inc. now owns 12,316 shares of the company’s stock worth $1,110,000 after buying an additional 83 shares in the last quarter. Finally, Norinchukin Bank The boosted its stake in Kansas City Southern by 1.7% in the second quarter. Norinchukin Bank The now owns 5,665 shares of the company’s stock worth $510,000 after buying an additional 96 shares in the last quarter. 91.33% of the stock is currently owned by hedge funds and other institutional investors.
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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