Kansas City Southern (KSU) Downgraded by Zacks Investment Research
Kansas City Southern (NYSE:KSU) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Wednesday.
According to Zacks, “Kansas City Southern’s third quarter results disappointed with earnings missing estimates and declining 7% on a year over year basis. Although revenue managed to beat estimates, it too declined from the same period in the prior year quarter. Moreover the company saw lower revenues across most major reporting segments. The company’s results were primarily impacted by weak energy markets. However other challenges such as floods, outages and service disruption in the company’s Mexico unit also contributed to the downside. The Mexican peso depreciation and lower U.S. fuel prices also hurt the company’s third quarter results. Operating ratio deteriorated to 66.9% in the reported quarter . Carload volumes declined 4% on a year-over-year basis.”
Other analysts have also issued research reports about the stock. Seaport Global Securities began coverage on shares of Kansas City Southern in a research report on Wednesday. They issued an “accumulate” rating on the stock. Barclays PLC raised shares of 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. Citigroup Inc. reissued a “buy” rating and issued a $108.00 price objective on shares of Kansas City Southern in a research report on Wednesday, July 6th. BMO Capital Markets restated a “market perform” rating and set a $94.00 target price on shares of Kansas City Southern in a report on Thursday, July 7th. Finally, Oppenheimer Holdings Inc. restated an “outperform” rating and set a $107.00 target price (up from $103.00) on shares of Kansas City Southern in a report on Friday, July 22nd. Two research analysts have rated the stock with a sell rating, eleven have given a hold rating, ten have issued 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 “Hold” and an average price target of $100.92.
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Kansas City Southern (NYSE:KSU) opened at 92.58 on Wednesday. The stock’s 50 day moving average is $93.17 and its 200 day moving average is $92.96. The firm has a market cap of $10.00 billion, a price-to-earnings ratio of 20.15 and a beta of 1.14. Kansas City Southern has a 52 week low of $62.20 and a 52 week high of $100.69.
Kansas City Southern (NYSE:KSU) last announced its quarterly earnings data on Tuesday, October 18th. The company reported $1.12 EPS for the quarter, missing the Zacks’ consensus estimate of $1.22 by $0.10. The business earned $605 million during the quarter, compared to the consensus estimate of $411.30 million. Kansas City Southern had a return on equity of 12.00% and a net margin of 21.13%. The business’s revenue for the quarter was down 4.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.21 EPS. Equities research analysts expect that Kansas City Southern will post $4.73 EPS for the current year.
The company also recently disclosed a quarterly dividend, which was paid on Wednesday, October 5th. Investors of record on Monday, September 12th were given a dividend of $0.33 per share. The ex-dividend date 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 related news, CFO Michael W. Upchurch sold 5,367 shares of the company’s stock in a transaction dated Friday, July 29th. The shares were sold at an average price of $95.18, for a total transaction of $510,831.06. Following the completion of the sale, the chief financial officer now owns 16,808 shares of the company’s stock, valued at $1,599,785.44. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Patrick J. Ottensmeyer sold 5,000 shares of the company’s stock in a transaction dated Thursday, August 4th. The stock was sold at an average price of $95.62, for a total transaction of $478,100.00. Following the sale, the chief executive officer now directly owns 90,228 shares of the company’s stock, valued at approximately $8,627,601.36. The disclosure for this sale can be found here. Corporate insiders own 0.86% of the company’s stock.
Large investors have recently bought and sold shares of the company. Seven Bridges Advisors LLC boosted its stake in Kansas City Southern by 30.0% in the second quarter. Seven Bridges Advisors LLC now owns 1,200 shares of the company’s stock valued at $108,000 after buying an additional 277 shares in the last quarter. Mizuho Asset Management Co. Ltd. boosted its stake in 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 valued at $128,000 after buying an additional 522 shares in the last quarter. Meeder Asset Management Inc. boosted its stake in 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 valued at $138,000 after buying an additional 1,406 shares in the last quarter. Washington Trust Bank boosted its stake in Kansas City Southern by 3.2% in the third quarter. Washington Trust Bank now owns 1,651 shares of the company’s stock valued at $154,000 after buying an additional 51 shares in the last quarter. Finally, Pacer Advisors Inc. boosted its stake in Kansas City Southern by 8.6% in the second quarter. Pacer Advisors Inc. now owns 2,160 shares of the company’s stock valued at $195,000 after buying an additional 171 shares in the last quarter. 91.30% of the stock is owned by institutional investors and hedge funds.
About Kansas City Southern
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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