Kansas City Southern (KSU) Upgraded at Zacks Investment Research
Kansas City Southern (NYSE:KSU) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Tuesday. The firm currently has a $101.00 target price on the stock. Zacks Investment Research’s price target suggests a potential upside of 12.41% from the stock’s previous close.
According to Zacks, “Kansas City Southern, with its wide cross-country network, remains focused on growing opportunities in cross-border intermodal businesses between the U.S. and Mexico. The company has a dominant position on the U.S.-Mexico routes. Moreover, the company’s consistent efforts to expand its business, its ability to hike prices and efforts to reduce costs continue to impress. We are also impressed by the company's efforts to reward its shareholders. However, like most railroads, the company has been adversely affected by weakness in the energy segment. The Mexican peso depreciation is another headwind. However, the company's top line is expected to improve in the second half of the year.”
A number of other equities research analysts have also weighed in on the company. Credit Suisse Group AG restated a “hold” rating and set a $101.00 price objective on shares of Kansas City Southern in a research report on Tuesday, September 13th. Citigroup Inc. boosted their price objective on Kansas City Southern from $109.00 to $110.00 and gave the stock a “buy” rating in a research report on Tuesday, September 13th. Barclays PLC upgraded Kansas City Southern from an “underweight” rating to an “equal weight” rating and boosted their price objective for the stock from $94.00 to $99.00 in a research report on Monday, September 12th. Loop Capital restated a “buy” rating on shares of Kansas City Southern in a research report on Friday, September 9th. Finally, Atlantic Securities started coverage on Kansas City Southern in a research report on Thursday, August 11th. They set a “neutral” rating and a $113.00 price objective on the stock. One equities research analyst has rated the stock with a sell rating, ten have given a hold rating, eleven have issued a buy rating and one has given a strong buy rating to the company. The company currently has an average rating of “Buy” and a consensus target price of $100.82.
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Shares of Kansas City Southern (NYSE:KSU) traded up 0.69% during midday trading on Tuesday, hitting $90.47. The company’s stock had a trading volume of 373,774 shares. The company has a 50-day moving average price of $96.25 and a 200 day moving average price of $91.95. The company has a market cap of $9.77 billion, a P/E ratio of 19.69 and a beta of 1.13. Kansas City Southern has a 1-year low of $62.20 and a 1-year high of $100.69.
Kansas City Southern (NYSE:KSU) last issued its quarterly earnings data on Tuesday, July 19th. The company reported $1.22 earnings per share for the quarter, topping analysts’ consensus estimates of $1.08 by $0.14. The business had revenue of $569 million for the quarter, compared to analyst estimates of $572.20 million. Kansas City Southern had a return on equity of 12.00% and a net margin of 21.13%. On average, equities research analysts predict that Kansas City Southern will post $4.79 EPS for the current year.
The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 5th. Shareholders of record on Monday, September 12th will be issued a dividend of $0.33 per share. This represents a $1.32 dividend on an annualized basis and a yield of 1.47%. The ex-dividend date of this dividend is Thursday, September 8th. Kansas City Southern’s dividend payout ratio is currently 28.82%.
In other news, CEO Patrick J. Ottensmeyer sold 5,000 shares of the company’s stock in a transaction that occurred on Thursday, August 4th. The stock was sold at an average price of $95.62, for a total value of $478,100.00. Following the completion of the transaction, the chief executive officer now directly owns 90,228 shares of the company’s stock, valued at $8,627,601.36. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider David L. Starling sold 5,100 shares of the company’s stock in a transaction that occurred on Wednesday, July 20th. The shares were sold at an average price of $98.88, for a total value of $504,288.00. The disclosure for this sale can be found here. Company insiders own 0.86% of the company’s stock.
Several institutional investors have recently added to or reduced their stakes in the stock. Norges Bank acquired a new position in Kansas City Southern during the fourth quarter valued at about $63,907,000. Chevy Chase Trust Holdings Inc. increased its position in Kansas City Southern by 3.8% in the first quarter. Chevy Chase Trust Holdings Inc. now owns 91,549 shares of the company’s stock valued at $7,823,000 after buying an additional 3,380 shares during the last quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund increased its position in Kansas City Southern by 17.6% in the first quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 21,387 shares of the company’s stock valued at $1,828,000 after buying an additional 3,205 shares during the last quarter. Exxonmobil Investment Management Inc. TX increased its position in Kansas City Southern by 8.0% in the first quarter. Exxonmobil Investment Management Inc. TX now owns 26,417 shares of the company’s stock valued at $2,257,000 after buying an additional 1,955 shares during the last quarter. Finally, OLD National Bancorp IN increased its position in Kansas City Southern by 15.1% in the first quarter. OLD National Bancorp IN now owns 3,773 shares of the company’s stock valued at $322,000 after buying an additional 494 shares during the last quarter. 91.37% of the stock is owned by institutional investors.
Kansas City Southern Company Profile
Kansas City Southern (KCS) is a transportation holding company with 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 controls and owns The Kansas City Southern Railway Company (KCSR), a United States Class I railroad that serves a 10-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 several key ports along the Gulf of Mexico in Alabama, Louisiana, Mississippi and Texas.
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