Canadian National Railway Company (NYSE:CNI) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Friday, October 27th.
According to Zacks, “Shares of Canadian National Railway Company have underperformed the industry it belongs to over the last three months. The stock has gained 2.9%, well below its industry's rally of 9%. Moreover, it has underperformed fellow Canadian railroad operator Canadian Pacific Railway whose shares have gained 10.4% over the last three months. Adding to its woes, Canadian National reported lower-than-expected earnings per share and revenues in the third quarter of 2017. High operating expenses are hurting the company. Deterioration in operating ratio is also a matter of concern. The company’s efforts to reward shareholders through dividend payments and share buybacks are, however, impressive.”
Several other equities research analysts also recently weighed in on CNI. Credit Suisse Group reissued a “neutral” rating and issued a $84.00 target price (up previously from $78.00) on shares of Canadian National Railway in a research report on Thursday, July 13th. They noted that the move was a valuation call. BidaskClub cut shares of Canadian National Railway from a “buy” rating to a “hold” rating in a research report on Tuesday, July 25th. Cowen and Company restated a “buy” rating and issued a $83.00 target price on shares of Canadian National Railway in a research report on Sunday, September 24th. Stifel Nicolaus reaffirmed a “hold” rating and issued a $89.00 price target on shares of Canadian National Railway in a research note on Friday, October 6th. Finally, Royal Bank Of Canada reissued an “outperform” rating on shares of Canadian National Railway in a research note on Wednesday, October 25th. One research analyst has rated the stock with a sell rating, ten have issued a hold rating and seven have issued a buy rating to the stock. The company currently has an average rating of “Hold” and an average price target of C$79.67.
Shares of Canadian National Railway (CNI) traded up C$0.35 during mid-day trading on Friday, reaching C$81.00. 686,300 shares of the company’s stock were exchanged, compared to its average volume of 1,058,240. The firm has a market cap of $60,434.10, a price-to-earnings ratio of 20.98, a P/E/G ratio of 2.18 and a beta of 1.11. Canadian National Railway has a 52-week low of C$62.97 and a 52-week high of C$84.48. The company has a debt-to-equity ratio of 0.58, a current ratio of 0.61 and a quick ratio of 0.49.
Canadian National Railway announced that its board has authorized a stock repurchase plan on Tuesday, October 24th that authorizes the company to repurchase 31,000,000 shares. This repurchase authorization authorizes the company to reacquire shares of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s management believes its stock is undervalued.
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A number of institutional investors and hedge funds have recently bought and sold shares of the business. Harding Loevner LP increased its position in Canadian National Railway by 2,838.1% in the 3rd quarter. Harding Loevner LP now owns 180,965,047 shares of the company’s stock valued at $366,305,000 after acquiring an additional 174,805,844 shares in the last quarter. TD Asset Management Inc. boosted its stake in shares of Canadian National Railway by 4.1% in the 2nd quarter. TD Asset Management Inc. now owns 18,836,822 shares of the company’s stock valued at $1,526,012,000 after purchasing an additional 740,664 shares during the last quarter. Vanguard Group Inc. boosted its stake in shares of Canadian National Railway by 15.5% in the 2nd quarter. Vanguard Group Inc. now owns 16,793,837 shares of the company’s stock valued at $1,361,140,000 after purchasing an additional 2,251,612 shares during the last quarter. Jarislowsky Fraser Ltd boosted its stake in shares of Canadian National Railway by 0.3% in the 3rd quarter. Jarislowsky Fraser Ltd now owns 10,255,502 shares of the company’s stock valued at $847,732,000 after purchasing an additional 25,974 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership boosted its stake in shares of Canadian National Railway by 363.0% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 5,913,974 shares of the company’s stock valued at $479,249,000 after purchasing an additional 4,636,737 shares during the last quarter. Hedge funds and other institutional investors own 54.42% of the company’s stock.
About Canadian National Railway
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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