Kansas City Southern (NYSE:KSU) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued to investors on Friday, April 6th.
According to Zacks, “Shares of Kansas City Southern have outperformed its industry in a year’s time. The company's volume growth is encouraging and is anticipated to aid results in the first quarter. Detailed results will be available on Apr 20. Improvement in operating ratio (operating expenses as a percentage of revenues) is also a positive. The company's efforts to reward shareholders is also encouraging. Toward this end, in August 2017, its board of directors approved of a new share repurchase program worth $800 million. Simultaneously, it increased its quarterly dividend in excess of 9%. However, the uncertainty over NAFTA is a major overhang on the stock. Moreover, 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 brokerages have also recently issued reports on KSU. Credit Suisse Group reissued an “outperform” rating and issued a $121.00 price objective (down from $126.00) on shares of Kansas City Southern in a research note on Thursday, March 8th. Morgan Stanley boosted their price objective on shares of Kansas City Southern from $102.00 to $104.00 and gave the stock an “equal weight” rating in a research note on Friday, April 6th. Finally, Seaport Global Securities reiterated a “neutral” rating on shares of Kansas City Southern in a report on Friday, March 23rd. Seven investment analysts have rated the stock with a hold rating, eight have given a buy rating and one has given a strong buy rating to the company. The company has a consensus rating of “Buy” and a consensus target price of $116.57.
Shares of Kansas City Southern stock opened at $111.93 on Friday. The firm has a market cap of $11,349.29, a P/E ratio of 21.06, a price-to-earnings-growth ratio of 1.36 and a beta of 0.78. The company has a debt-to-equity ratio of 0.46, a quick ratio of 0.54 and a current ratio of 0.70. Kansas City Southern has a 12 month low of $86.14 and a 12 month high of $114.85.
Kansas City Southern (NYSE:KSU) last announced its quarterly earnings data on Friday, January 19th. The transportation company reported $1.38 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate 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 company had revenue of $660.40 million during the quarter, compared to analysts’ expectations of $658.33 million. During the same quarter last year, the company earned $1.21 EPS. Kansas City Southern’s revenue for the quarter was up 10.3% compared to the same quarter last year. analysts expect that Kansas City Southern will post 6.21 EPS for the current year.
In other news, Director Henry J. Maier purchased 1,000 shares of the business’s stock in a transaction on Monday, February 12th. The shares were acquired at an average price of $104.35 per share, with a total value of $104,350.00. Following the acquisition, the director now directly owns 5,159 shares in the company, valued at $538,341.65. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, CMO Brian D. Hancock sold 2,325 shares of the firm’s stock in a transaction dated Wednesday, January 31st. The stock was sold at an average price of $113.00, for a total transaction of $262,725.00. Following the completion of the sale, the chief marketing officer now directly owns 19,455 shares of the company’s stock, valued at $2,198,415. The disclosure for this sale can be found here. 0.70% of the stock is currently owned by company insiders.
Several large investors have recently bought and sold shares of the company. Janus Henderson Group PLC lifted its position in Kansas City Southern by 64.7% during the 3rd quarter. Janus Henderson Group PLC now owns 452,260 shares of the transportation company’s stock valued at $49,151,000 after acquiring an additional 177,706 shares during the period. Schwab Charles Investment Management Inc. raised its holdings in Kansas City Southern by 2.7% in the third quarter. Schwab Charles Investment Management Inc. now owns 365,557 shares of the transportation company’s stock worth $39,729,000 after buying an additional 9,585 shares during the last quarter. Victory Capital Management Inc. raised its holdings in Kansas City Southern by 15.9% in the fourth quarter. Victory Capital Management Inc. now owns 42,259 shares of the transportation company’s stock worth $4,446,000 after buying an additional 5,798 shares during the last quarter. Elkfork Partners LLC purchased a new position in Kansas City Southern in the fourth quarter worth about $3,550,000. Finally, Macquarie Group Ltd. raised its holdings in Kansas City Southern by 22.0% in the third quarter. Macquarie Group Ltd. now owns 13,300 shares of the transportation company’s stock worth $1,446,000 after buying an additional 2,400 shares during the last quarter. 87.99% of the stock is owned by hedge funds and other institutional investors.
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Kansas City Southern Company Profile
Kansas City Southern, through its subsidiaries, provides domestic and international rail transportation services in North America. It serves a ten-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 ports along the Gulf of Mexico in Alabama, Louisiana, Mississippi, and Texas.
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