Kansas City Southern’s (KSU) Buy Rating Reaffirmed at Citigroup Inc.
Kansas City Southern (NYSE:KSU)‘s stock had its “buy” rating reiterated by research analysts at Citigroup Inc. in a report released on Wednesday. They presently have a $123.00 price target on the transportation company’s stock, up from their previous price target of $116.00. Citigroup Inc.’s price objective indicates a potential upside of 14.93% from the stock’s previous close.
Several other equities analysts have also recently commented on the company. BidaskClub cut Kansas City Southern from a “strong-buy” rating to a “buy” rating in a report on Thursday, June 22nd. Aegis upped their price target on Kansas City Southern from $110.00 to $115.00 and gave the company a “buy” rating in a report on Monday, June 19th. Credit Suisse Group raised Kansas City Southern from a “neutral” rating to an “outperform” rating and upped their price target for the company from $90.00 to $116.00 in a report on Friday, June 16th. Zacks Investment Research raised Kansas City Southern from a “hold” rating to a “buy” rating and set a $115.00 price target for the company in a report on Friday, September 1st. Finally, UBS AG reaffirmed a “positive” rating and issued a $117.00 price target (up previously from $103.00) on shares of Kansas City Southern in a report on Monday, July 24th. Eleven analysts have rated the stock with a hold rating, eight have assigned a buy rating and one has given a strong buy rating to the stock. The company currently has a consensus rating of “Buy” and a consensus target price of $107.60.
Shares of Kansas City Southern (NYSE KSU) traded up 0.21% on Wednesday, hitting $107.02. The stock had a trading volume of 634,176 shares. The firm’s 50-day moving average is $105.96 and its 200 day moving average is $98.32. Kansas City Southern has a 1-year low of $79.05 and a 1-year high of $109.13. The stock has a market cap of $11.28 billion, a P/E ratio of 21.54 and a beta of 0.81.
Kansas City Southern (NYSE:KSU) last posted its quarterly earnings results on Friday, July 21st. The transportation company reported $1.33 EPS for the quarter, beating the consensus estimate of $1.26 by $0.07. The firm had revenue of $656.40 million during the quarter, compared to analysts’ expectations of $627.81 million. Kansas City Southern had a return on equity of 11.40% and a net margin of 21.52%. The company’s revenue for the quarter was up 15.5% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.22 EPS. Equities analysts forecast that Kansas City Southern will post $5.20 EPS for the current year.
Kansas City Southern announced that its board has approved a share buyback program on Tuesday, August 15th that allows the company to buyback $800.00 million in outstanding shares. This buyback authorization allows the transportation company to repurchase up to 7.1% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board of directors believes its shares are undervalued.
In related news, Director Antonio O. Garza sold 4,018 shares of the stock in a transaction that occurred on Tuesday, August 22nd. The stock was sold at an average price of $107.94, for a total transaction of $433,702.92. Following the sale, the director now directly owns 4,920 shares in the company, valued at approximately $531,064.80. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, SVP Mary K. Stadler sold 4,451 shares of the stock in a transaction that occurred on Friday, August 18th. The stock was sold at an average price of $105.87, for a total value of $471,227.37. Following the sale, the senior vice president now owns 8,814 shares in the company, valued at $933,138.18. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 14,469 shares of company stock worth $1,522,510. 0.95% of the stock is owned by corporate insiders.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. IHT Wealth Management LLC grew its position in Kansas City Southern by 243.9% during the 2nd quarter. IHT Wealth Management LLC now owns 141 shares of the transportation company’s stock worth $675,000 after acquiring an additional 100 shares during the last quarter. QS Investors LLC grew its position in Kansas City Southern by 0.5% during the 2nd quarter. QS Investors LLC now owns 1,320 shares of the transportation company’s stock worth $138,000 after acquiring an additional 7 shares during the last quarter. San Francisco Sentry Investment Group CA bought a new stake in Kansas City Southern during the 2nd quarter worth approximately $160,000. V Wealth Management LLC bought a new stake in Kansas City Southern during the 2nd quarter worth approximately $169,000. Finally, Advisor Partners LLC bought a new stake in Kansas City Southern during the 2nd quarter worth approximately $202,000. Institutional investors and hedge funds own 84.59% of the company’s stock.
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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