Kansas City Southern (KSU) to Buyback $800.00 million in Shares
Kansas City Southern (NYSE:KSU) declared that its Board of Directors has initiated a share buyback plan, which authorizes the company to buyback $800.00 million in outstanding shares on Tuesday, August 15th, EventVestor reports. This buyback authorization authorizes the transportation company to repurchase up to 7.1% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s management believes its shares are undervalued.
A number of research analysts have recently issued reports on the company. BidaskClub cut Kansas City Southern from a “strong-buy” rating to a “buy” rating in a research note on Friday, July 28th. Aegis raised their price objective on Kansas City Southern from $110.00 to $115.00 and gave the company a “buy” rating in a research note on Monday, June 19th. Cowen and Company raised their price objective on Kansas City Southern from $94.00 to $95.00 and gave the company a “market perform” rating in a research note on Monday, April 24th. UBS AG reaffirmed a “positive” rating and set a $117.00 price objective (up from $103.00) on shares of Kansas City Southern in a research note on Monday, July 24th. Finally, Credit Suisse Group reaffirmed a “neutral” rating and set a $90.00 price objective (up from $87.00) on shares of Kansas City Southern in a research note on Sunday, May 28th. Eleven investment analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company. The stock presently has an average rating of “Hold” and an average target price of $102.67.
Shares of Kansas City Southern (NYSE:KSU) traded up 1.10% during mid-day trading on Wednesday, reaching $107.50. 533,409 shares of the company’s stock traded hands. Kansas City Southern has a 12-month low of $79.05 and a 12-month high of $109.13. The firm has a market capitalization of $11.33 billion, a price-to-earnings ratio of 21.63 and a beta of 0.80. The stock has a 50-day moving average price of $103.75 and a 200 day moving average price of $93.66. Kansas City Southern also was the recipient of some unusual options trading activity on Monday. Stock traders purchased 16,095 call options on the company. This represents an increase of 1,193% compared to the typical daily volume of 1,245 call options.
Kansas City Southern (NYSE:KSU) last released its quarterly earnings data on Friday, July 21st. The transportation company reported $1.33 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.26 by $0.07. Kansas City Southern had a net margin of 21.52% and a return on equity of 11.40%. The firm had revenue of $656.40 million for the quarter, compared to the consensus estimate of $627.81 million. During the same period last year, the firm earned $1.22 earnings per share. The company’s quarterly revenue was up 15.5% on a year-over-year basis. Analysts anticipate that Kansas City Southern will post $5.21 EPS for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 4th. Stockholders of record on Monday, September 11th will be paid a dividend of $0.36 per share. This is an increase from Kansas City Southern’s previous quarterly dividend of $0.33. This represents a $1.44 dividend on an annualized basis and a dividend yield of 1.35%. Kansas City Southern’s dividend payout ratio (DPR) is currently 26.51%.
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Kansas City Southern Company Profile
Kansas City Southern (KCS) is a holding company. The Company has 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’s subsidiaries include The Kansas City Southern Railway Company (KCSR) and Kansas City Southern de Mexico, SA de C.V.
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