Kansas City Southern (KSU) Upgraded to Hold at Zacks Investment Research

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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 Tuesday.

According to Zacks, “Shares of Kansas City Southern have underperformed its industry in the last six months. The uncertainty over NAFTA is a major overhang on the stock as it has a significant Mexican exposure. The rise in operating expenses is also concerning. This may adversely affect the operating ratio going forward. The dismal performance of the Energy segment  is also worisome. The company is scheduled to report second-quarter 2018 results on Jul 20. However, the company has been benefitting from impressive volume growth. Its efforts to reward shareholders through dividend payments and buybacks are also encouraging.”

KSU has been the topic of a number of other reports. Credit Suisse Group lifted their price objective on Kansas City Southern from $122.00 to $132.00 and gave the stock an “outperform” rating in a research report on Monday, April 23rd. Cowen reiterated a “hold” rating and issued a $116.00 price objective on shares of Kansas City Southern in a research report on Monday, April 23rd. Seaport Global Securities restated a “neutral” rating on shares of Kansas City Southern in a research note on Friday, March 23rd. BMO Capital Markets raised their target price on Kansas City Southern from $117.00 to $120.00 and gave the company a “market perform” rating in a research note on Friday, April 13th. Finally, Stifel Nicolaus restated a “buy” rating and issued a $130.00 target price on shares of Kansas City Southern in a research note on Saturday, June 2nd. Six equities research analysts have rated the stock with a hold rating, eight have given a buy rating and one has issued a strong buy rating to the company’s stock. Kansas City Southern currently has an average rating of “Buy” and a consensus target price of $118.92.

Shares of KSU stock traded down $1.89 during trading hours on Tuesday, reaching $105.06. The company’s stock had a trading volume of 22,155 shares, compared to its average volume of 905,903. The firm has a market cap of $10.87 billion, a P/E ratio of 20.01, a P/E/G ratio of 1.32 and a beta of 0.78. Kansas City Southern has a one year low of $99.47 and a one year high of $114.91. The company has a debt-to-equity ratio of 0.45, a quick ratio of 0.49 and a current ratio of 0.69.

Kansas City Southern (NYSE:KSU) last issued its quarterly earnings data on Friday, April 20th. The transportation company reported $1.30 earnings per share for the quarter, missing the Zacks’ consensus estimate of $1.35 by ($0.05). The business had revenue of $638.60 million during the quarter, compared to the consensus estimate of $639.39 million. Kansas City Southern had a return on equity of 11.98% and a net margin of 36.75%. Kansas City Southern’s quarterly revenue was up 4.8% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.17 earnings per share. equities analysts predict that Kansas City Southern will post 6.17 EPS for the current year.

In other Kansas City Southern news, VP Suzanne M. Grafton sold 300 shares of Kansas City Southern stock in a transaction on Friday, May 4th. The stock was sold at an average price of $107.97, for a total transaction of $32,391.00. Following the completion of the transaction, the vice president now owns 10,955 shares in the company, valued at $1,182,811.35. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Michael W. Upchurch sold 2,074 shares of Kansas City Southern stock in a transaction on Thursday, May 10th. The shares were sold at an average price of $110.15, for a total value of $228,451.10. Following the transaction, the chief financial officer now owns 15,590 shares of the company’s stock, valued at approximately $1,717,238.50. The disclosure for this sale can be found here. Company insiders own 0.70% of the company’s stock.

A number of large investors have recently made changes to their positions in the business. Bedell Frazier Investment Counseling LLC raised its stake in Kansas City Southern by 0.7% during the first quarter. Bedell Frazier Investment Counseling LLC now owns 72,428 shares of the transportation company’s stock valued at $7,956,000 after buying an additional 515 shares during the last quarter. Avalon Advisors LLC raised its stake in shares of Kansas City Southern by 0.5% in the first quarter. Avalon Advisors LLC now owns 97,743 shares of the transportation company’s stock worth $10,737,000 after purchasing an additional 521 shares during the last quarter. Moors & Cabot Inc. raised its stake in shares of Kansas City Southern by 14.2% in the first quarter. Moors & Cabot Inc. now owns 4,427 shares of the transportation company’s stock worth $486,000 after purchasing an additional 551 shares during the last quarter. SVA Plumb Wealth Management LLC raised its stake in shares of Kansas City Southern by 4.9% in the first quarter. SVA Plumb Wealth Management LLC now owns 13,633 shares of the transportation company’s stock worth $1,482,000 after purchasing an additional 635 shares during the last quarter. Finally, Captrust Financial Advisors raised its stake in shares of Kansas City Southern by 6.8% in the fourth quarter. Captrust Financial Advisors now owns 10,687 shares of the transportation company’s stock worth $1,128,000 after purchasing an additional 685 shares during the last quarter. Institutional investors and hedge funds own 86.87% of the company’s stock.

About Kansas City Southern

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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