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.”
KSU has been the subject of a number of other reports. BMO Capital Markets reiterated a market perform rating and set a $98.00 target price on shares of Kansas City Southern in a report on Tuesday. RBC Capital Markets reissued an outperform rating and issued a $114.00 price target (up from $109.00) on shares of Kansas City Southern in a research note on Wednesday, July 20th. Credit Suisse Group AG reissued a neutral rating and issued a $101.00 price target (up from $99.00) on shares of Kansas City Southern in a research note on Friday, July 22nd. Oppenheimer Holdings Inc. reissued an outperform rating and issued a $107.00 price target (up from $103.00) on shares of Kansas City Southern in a research note on Friday, July 22nd. Finally, Barclays PLC increased their price target on shares of Kansas City Southern from $73.00 to $79.00 and gave the stock an underweight rating in a research note on Wednesday, July 20th. One equities research analyst has rated the stock with a sell rating, eleven have assigned a hold rating, ten have issued a buy rating and one has issued a strong buy rating to the company’s stock. The stock presently has a consensus rating of Hold and a consensus target price of $100.92.
Kansas City Southern (NYSE:KSU) opened at 93.47 on Wednesday. The stock has a market cap of $10.09 billion, a P/E ratio of 20.34 and a beta of 1.14. The stock has a 50 day moving average price of $94.48 and a 200-day moving average price of $92.43. Kansas City Southern has a 52 week low of $62.20 and a 52 week high of $100.69.
Kansas City Southern (NYSE:KSU) last posted its earnings results on Tuesday, July 19th. The company reported $1.22 earnings per share for the quarter, topping the Zacks’ consensus estimate of $1.08 by $0.14. The company earned $569 million during 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, equities analysts anticipate that Kansas City Southern will post $4.75 EPS for the current fiscal year.
The firm also recently declared a quarterly dividend, which was paid on Wednesday, October 5th. Stockholders of record on Monday, September 12th were paid a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a dividend yield of 1.41%. The ex-dividend date was Thursday, September 8th. Kansas City Southern’s dividend payout ratio is presently 28.82%.
In other news, 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 sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Patrick J. Ottensmeyer sold 5,000 shares of Kansas City Southern stock in a transaction on Thursday, August 4th. The stock was sold at an average price of $95.62, for a total transaction of $478,100.00. Following the transaction, the chief executive officer now owns 90,228 shares in the company, valued at approximately $8,627,601.36. The disclosure for this sale can be found here. Insiders own 0.86% of the company’s stock.
Several hedge funds have recently made changes to their positions in the stock. Glenmede Trust Co. NA increased its stake in shares of Kansas City Southern by 18.6% in the first quarter. Glenmede Trust Co. NA now owns 5,720 shares of the company’s stock valued at $488,000 after buying an additional 898 shares during the last quarter. Aperio Group LLC increased its stake in shares of Kansas City Southern by 44.6% in the first quarter. Aperio Group LLC now owns 36,971 shares of the company’s stock valued at $3,159,000 after buying an additional 11,402 shares during the last quarter. Pacad Investment Ltd. purchased a new stake in shares of Kansas City Southern during the first quarter valued at approximately $875,000. Los Angeles Capital Management & Equity Research Inc. purchased a new stake in shares of Kansas City Southern during the first quarter valued at approximately $1,585,000. Finally, Prudential Financial Inc. increased its stake in shares of Kansas City Southern by 0.3% in the first quarter. Prudential Financial Inc. now owns 136,712 shares of the company’s stock valued at $11,683,000 after buying an additional 400 shares during the last quarter. Hedge funds and other institutional investors own 91.33% of the company’s stock.
About Kansas City Southern
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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