Zacks Investment Research cut shares of Kansas City Southern (NYSE:KSU) from a buy rating to a hold rating in a report published on Monday.
According to Zacks, “Shares of Kansas City Southern have outperformed the industry it belongs to in a year’s time. Revenue growth across most of the company’s key segments is encouraging. Improvement in operating ratio is also a positive for the company. Furthermore, we are bullish on the company's efforts to reward shareholders through dividend payments and buybacks. In line with this objective, the company hiked its quarterly dividend in excess of 9%, last year. Its board cleared a new share repurchase program worth $800 million too. However, declining volumes at the Agriculture & Minerals units remain concerning. Further, adding to its woes are high operating expenses mainly due to the rise in fuel costs.”
A number of other research analysts also recently weighed in on KSU. Goldman Sachs Group started coverage on Kansas City Southern in a report on Monday, November 13th. They set a neutral rating and a $109.00 target price on the stock. BMO Capital Markets reiterated a hold rating and set a $109.00 target price on shares of Kansas City Southern in a report on Friday, November 24th. Six investment analysts have rated the stock with a hold rating, ten have assigned a buy rating and one has assigned a strong buy rating to the company. The company currently has an average rating of Buy and an average price target of $115.33.
Kansas City Southern (NYSE:KSU) last posted its earnings results on Friday, January 19th. The transportation company reported $1.38 earnings per share for the quarter, topping analysts’ consensus estimates of $1.36 by $0.02. Kansas City Southern had a return on equity of 12.07% and a net margin of 37.24%. The firm had revenue of $660.40 million for the quarter, compared to the consensus estimate of $658.33 million. During the same quarter in the prior year, the business earned $1.21 EPS. The business’s revenue for the quarter was up 10.3% on a year-over-year basis. equities research analysts forecast that Kansas City Southern will post 6.24 earnings per share for the current fiscal year.
The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 4th. Investors of record on Monday, March 12th will be paid a $0.36 dividend. The ex-dividend date of this dividend is Friday, March 9th. This represents a $1.44 annualized dividend and a dividend yield of 1.40%. Kansas City Southern’s payout ratio is currently 27.59%.
In related news, Director Henry J. Maier purchased 1,000 shares of the business’s stock in a transaction that occurred on Monday, February 12th. The shares were bought at an average price of $104.35 per share, for a total transaction of $104,350.00. Following the purchase, the director now directly owns 5,159 shares of the company’s stock, valued at approximately $538,341.65. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Jeffrey M. Songer sold 3,000 shares of the company’s stock in a transaction that occurred on Thursday, December 7th. The stock was sold at an average price of $111.80, for a total value of $335,400.00. The disclosure for this sale can be found here. Corporate insiders own 0.95% of the company’s stock.
Institutional investors have recently bought and sold shares of the stock. Delpha Capital Management LLC purchased a new stake in shares of Kansas City Southern in the 4th quarter worth approximately $102,000. Cerebellum GP LLC purchased a new stake in shares of Kansas City Southern in the 4th quarter worth approximately $116,000. Tower Research Capital LLC TRC grew its stake in shares of Kansas City Southern by 182.8% in the 4th quarter. Tower Research Capital LLC TRC now owns 1,414 shares of the transportation company’s stock worth $149,000 after buying an additional 914 shares during the last quarter. Steward Partners Investment Advisory LLC purchased a new stake in shares of Kansas City Southern in the 3rd quarter worth approximately $160,000. Finally, Jump Trading LLC purchased a new stake in shares of Kansas City Southern in the 4th quarter worth approximately $214,000. Institutional investors own 83.75% of the company’s stock.
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Kansas City Southern Company Profile
Kansas City Southern (KCS) is a holding company. The Company has 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’s subsidiaries include The Kansas City Southern Railway Company (KCSR) and Kansas City Southern de Mexico, SA de C.V.
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