Zacks Investment Research upgraded shares of Canadian National Railway (NYSE:CNI) (TSE:CNR) from a sell rating to a hold rating in a report published on Monday.
According to Zacks, “Canadian National Railway Company's fourth-quarter results should benefit from volume growth at its key units like Overseas Intermodal, Frac sand, Coal and Petroleum coke exports, and Canadian grain. Rail freight revenues should also rise substantially in the quarter. Results will be available on Jan 23. The company's efforts to reward shareholders through dividend payments and share buybacks are also impressive. However, high fuel costs might hurt the company's fourth-quarter results as well, as was the case in the previous quarter. Deterioration in operating ratio is also a matter of concern. Declining revenues at the forest products, and grain and fertilizers segment might hurt the top line going forward. Shares of the company have underperformed its industry in the last three months.”
A number of other research analysts also recently commented on CNI. Royal Bank of Canada reaffirmed an outperform rating on shares of Canadian National Railway in a report on Wednesday, October 25th. TD Securities raised shares of Canadian National Railway from a hold rating to a buy rating in a report on Thursday, November 30th. They noted that the move was a valuation call. Stifel Nicolaus reaffirmed a hold rating and issued a $89.00 price target on shares of Canadian National Railway in a report on Friday, October 6th. Cowen reaffirmed a buy rating and issued a $83.00 price target on shares of Canadian National Railway in a report on Sunday, September 24th. Finally, CIBC raised shares of Canadian National Railway from a neutral rating to a sector outperform rating in a report on Wednesday, November 8th. One analyst has rated the stock with a sell rating, nine have issued a hold rating and eight have given a buy rating to the stock. The stock currently has a consensus rating of Hold and a consensus target price of $79.67.
Canadian National Railway (NYSE:CNI) (TSE:CNR) last announced its quarterly earnings results on Tuesday, October 24th. The transportation company reported $1.05 EPS for the quarter, missing the Zacks’ consensus estimate of $1.06 by ($0.01). Canadian National Railway had a net margin of 29.98% and a return on equity of 25.57%. equities research analysts predict that Canadian National Railway will post 3.95 earnings per share for the current fiscal year.
Canadian National Railway announced that its board has authorized a share buyback program on Tuesday, October 24th that permits the company to repurchase 31,000,000 outstanding shares. This repurchase authorization permits the transportation company to purchase shares of its stock through open market purchases. Shares repurchase programs are often a sign that the company’s board of directors believes its stock is undervalued.
The company also recently disclosed a quarterly dividend, which was paid on Friday, December 29th. Investors of record on Friday, December 8th were given a $0.3304 dividend. This is a positive change from Canadian National Railway’s previous quarterly dividend of $0.33. This represents a $1.32 dividend on an annualized basis and a yield of 1.63%. The ex-dividend date of this dividend was Thursday, December 7th. Canadian National Railway’s dividend payout ratio is 31.87%.
A number of institutional investors have recently bought and sold shares of CNI. Harding Loevner LP increased its position in shares of Canadian National Railway by 2,838.1% during the third quarter. Harding Loevner LP now owns 180,965,047 shares of the transportation company’s stock worth $366,305,000 after acquiring an additional 174,805,844 shares during the period. Vanguard Group Inc. increased its position in shares of Canadian National Railway by 15.5% during the second quarter. Vanguard Group Inc. now owns 16,793,837 shares of the transportation company’s stock worth $1,361,140,000 after acquiring an additional 2,251,612 shares during the period. Caisse DE Depot ET Placement DU Quebec increased its position in shares of Canadian National Railway by 0.3% during the third quarter. Caisse DE Depot ET Placement DU Quebec now owns 15,870,472 shares of the transportation company’s stock worth $1,317,389,000 after acquiring an additional 46,700 shares during the period. Jarislowsky Fraser Ltd increased its position in shares of Canadian National Railway by 0.3% during the third quarter. Jarislowsky Fraser Ltd now owns 10,255,502 shares of the transportation company’s stock worth $847,732,000 after acquiring an additional 25,974 shares during the period. Finally, Arrowstreet Capital Limited Partnership increased its position in shares of Canadian National Railway by 363.0% during the second quarter. Arrowstreet Capital Limited Partnership now owns 5,913,974 shares of the transportation company’s stock worth $479,249,000 after acquiring an additional 4,636,737 shares during the period. 53.73% of the stock is currently owned by institutional investors.
Canadian National Railway Company Profile
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.
Receive News & Ratings for Canadian National Railway Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Canadian National Railway and related companies with MarketBeat.com's FREE daily email newsletter.