Kansas City Southern (KSU) Stock Rating Lowered 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 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.”
Several other brokerages have also issued reports on KSU. BMO Capital Markets reiterated a “market perform” rating and set a $94.00 price objective on shares of Kansas City Southern in a report on Thursday, July 7th. Loop Capital reiterated a “buy” rating on shares of Kansas City Southern in a report on Friday, September 9th. Royal Bank Of Canada raised their target price on Kansas City Southern from $109.00 to $114.00 and gave the company an “outperform” rating in a report on Wednesday, July 20th. Citigroup Inc. raised their target price on Kansas City Southern from $108.00 to $109.00 and gave the company a “buy” rating in a report on Wednesday, July 20th. Finally, TheStreet upgraded Kansas City Southern from a “hold” rating to a “buy” rating in a report on Thursday, July 28th. Two analysts have rated the stock with a sell rating, eleven have assigned 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 a consensus rating of “Hold” and a consensus target price of $101.06.
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Kansas City Southern (NYSE:KSU) opened at 92.22 on Wednesday. Kansas City Southern has a 12-month low of $62.20 and a 12-month high of $100.69. The firm’s 50-day moving average price is $93.17 and its 200-day moving average price is $92.96. The company has a market cap of $9.96 billion, a P/E ratio of 20.07 and a beta of 1.14.
Kansas City Southern (NYSE:KSU) last announced its quarterly earnings data on Tuesday, October 18th. The company reported $1.12 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $1.22 by $0.10. Kansas City Southern had a return on equity of 12.00% and a net margin of 21.13%. The firm had revenue of $605 million for the quarter, compared to analysts’ expectations of $411.30 million. During the same quarter in the prior year, the business posted $1.21 earnings per share. Kansas City Southern’s revenue was down 4.3% on a year-over-year basis. Analysts expect that Kansas City Southern will post $4.73 EPS for the current year.
The firm also recently announced a quarterly dividend, which was paid on Wednesday, October 5th. Stockholders of record on Monday, September 12th were issued a $0.33 dividend. This represents a $1.32 annualized dividend and a dividend yield of 1.43%. The ex-dividend date was Thursday, September 8th. Kansas City Southern’s payout ratio is currently 28.82%.
In related news, CFO Michael W. Upchurch sold 5,367 shares of the business’s stock in a transaction that occurred on Friday, July 29th. The shares were sold at an average price of $95.18, for a total value of $510,831.06. Following the completion of the transaction, the chief financial officer now owns 16,808 shares in the company, valued at approximately $1,599,785.44. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Patrick J. Ottensmeyer sold 5,000 shares of the business’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 transaction of $478,100.00. Following the completion of the transaction, the chief executive officer now 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. 0.86% of the stock is owned by insiders.
A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Prudential Financial Inc. boosted its position in Kansas City Southern by 0.3% in the first quarter. Prudential Financial Inc. now owns 136,712 shares of the company’s stock valued at $11,683,000 after buying an additional 400 shares during the period. NN Investment Partners Holdings N.V. bought a new position in Kansas City Southern during the first quarter valued at $316,000. ING Groep NV bought a new position in Kansas City Southern during the first quarter valued at $213,000. Aviva PLC boosted its position in Kansas City Southern by 0.7% in the first quarter. Aviva PLC now owns 55,203 shares of the company’s stock valued at $4,717,000 after buying an additional 377 shares during the period. Finally, Credit Agricole S A boosted its position in Kansas City Southern by 4.9% in the first quarter. Credit Agricole S A now owns 93,317 shares of the company’s stock valued at $7,974,000 after buying an additional 4,393 shares during the period. Hedge funds and other institutional investors own 91.30% 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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