Kansas City Southern (KSU) Downgraded by Zacks Investment Research to “Hold”
Kansas City Southern (NYSE:KSU) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Wednesday.
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.”
KSU has been the subject of a number of other research reports. TheStreet upgraded Kansas City Southern from a “hold” rating to a “buy” rating in a research report on Thursday, July 28th. Citigroup Inc. boosted their target price on Kansas City Southern from $108.00 to $109.00 and gave the stock a “buy” rating in a research report on Wednesday, July 20th. Bank of America Corp. restated a “buy” rating on shares of Kansas City Southern in a research report on Tuesday, July 12th. Loop Capital restated a “buy” rating and set a $115.00 target price on shares of Kansas City Southern in a research report on Monday, August 15th. Finally, Barclays PLC upgraded Kansas City Southern from an “underweight” rating to an “equal weight” rating and boosted their target price for the stock from $94.00 to $99.00 in a research report on Monday, September 12th. One investment analyst has rated the stock with a sell rating, eleven have assigned a hold rating, ten have issued a buy rating and one has given a strong buy rating to the stock. The company presently has a consensus rating of “Hold” and a consensus price target of $100.92.
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Shares of Kansas City Southern (NYSE:KSU) traded down 1.39% on Wednesday, reaching $92.02. The company had a trading volume of 918,719 shares. The company has a 50-day moving average price of $94.18 and a 200-day moving average price of $92.47. Kansas City Southern has a one year low of $62.20 and a one year high of $100.69. The firm has a market cap of $9.94 billion, a P/E ratio of 20.03 and a beta of 1.14.
Kansas City Southern (NYSE:KSU) last announced its quarterly earnings results on Tuesday, July 19th. The company reported $1.22 EPS for the quarter, beating the Thomson Reuters’ consensus estimate 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, analysts expect that Kansas City Southern will post $4.73 earnings per share for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, October 5th. Shareholders of record on Monday, September 12th were paid a $0.33 dividend. The ex-dividend date of this dividend was Thursday, September 8th. This represents a $1.32 annualized dividend and a yield of 1.43%. Kansas City Southern’s dividend payout ratio is 28.82%.
In other news, insider David L. Starling sold 5,100 shares of the stock in a transaction that occurred on Wednesday, July 20th. The stock was sold at an average price of $98.88, for a total transaction of $504,288.00. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, SVP William J. Wochner sold 26,521 shares of the stock in a transaction that occurred on Wednesday, July 20th. The stock was sold at an average price of $98.32, for a total value of $2,607,544.72. The disclosure for this sale can be found here. 0.86% of the stock is owned by company insiders.
Institutional investors have recently made changes to their positions in the company. Seven Bridges Advisors LLC raised its position in shares of Kansas City Southern by 30.0% in the second quarter. Seven Bridges Advisors LLC now owns 1,200 shares of the company’s stock worth $108,000 after buying an additional 277 shares during the period. Mizuho Asset Management Co. Ltd. raised its position in shares of Kansas City Southern by 57.8% in the second quarter. Mizuho Asset Management Co. Ltd. now owns 1,425 shares of the company’s stock worth $128,000 after buying an additional 522 shares during the period. Meeder Asset Management Inc. raised its position in shares of Kansas City Southern by 1,065.2% in the second quarter. Meeder Asset Management Inc. now owns 1,538 shares of the company’s stock worth $138,000 after buying an additional 1,406 shares during the period. Washington Trust Bank raised its position in shares of Kansas City Southern by 3.2% in the third quarter. Washington Trust Bank now owns 1,651 shares of the company’s stock worth $154,000 after buying an additional 51 shares during the period. Finally, Pacer Advisors Inc. raised its position in shares of Kansas City Southern by 8.6% in the second quarter. Pacer Advisors Inc. now owns 2,160 shares of the company’s stock worth $195,000 after buying an additional 171 shares during the period. Institutional investors own 91.33% of the company’s stock.
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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