Canadian National Railway Company (CNI) Cut to Sell at Zacks Investment Research
Canadian National Railway Company (NYSE:CNI) (TSE:CNR) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Friday.
According to Zacks, “Shares of Canadian National Railway Company have underperformed the industry it belongs to over the last three months. The stock has gained 2.9%, well below its industry's rally of 9%. Moreover, it has underperformed fellow Canadian railroad operator Canadian Pacific Railway whose shares have gained 10.4% over the last three months. Adding to its woes, Canadian National reported lower-than-expected earnings per share and revenues in the third quarter of 2017. High operating expenses are hurting the company. Deterioration in operating ratio is also a matter of concern. The company’s efforts to reward shareholders through dividend payments and share buybacks are, however, impressive.”
Several other brokerages also recently weighed in on CNI. Royal Bank Of Canada reissued an “outperform” rating on shares of Canadian National Railway in a research note on Wednesday. Raymond James Financial, Inc. downgraded shares of Canadian National Railway from an “outperform” rating to a “market perform” rating in a research note on Wednesday. Credit Suisse Group reiterated a “neutral” rating on shares of Canadian National Railway in a report on Friday, July 28th. Desjardins upgraded Canadian National Railway from a “hold” rating to a “buy” rating in a report on Wednesday. Finally, BidaskClub upgraded Canadian National Railway from a “sell” rating to a “hold” rating in a report on Wednesday, August 16th. One investment analyst has rated the stock with a sell rating, ten have given a hold rating and five have given a buy rating to the company’s stock. The company presently has an average rating of “Hold” and a consensus target price of $77.88.
Canadian National Railway (CNI) traded down 0.04% during trading on Friday, reaching $81.28. 1,730,062 shares of the company were exchanged. The stock has a market capitalization of $61.04 billion, a P/E ratio of 19.43 and a beta of 1.13. The company’s 50-day moving average price is $81.55 and its 200-day moving average price is $79.25. Canadian National Railway has a 1-year low of $61.72 and a 1-year high of $84.48.
Canadian National Railway declared that its Board of Directors has authorized a share buyback plan on Tuesday, October 24th that authorizes the company to repurchase 31,000,000 outstanding shares. This repurchase authorization authorizes the transportation company to purchase shares of its stock through open market purchases. Shares repurchase plans are generally a sign that the company’s board believes its shares are undervalued.
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Several hedge funds have recently modified their holdings of CNI. TD Asset Management Inc. grew its holdings in Canadian National Railway by 4.1% in the 2nd quarter. TD Asset Management Inc. now owns 18,836,822 shares of the transportation company’s stock valued at $1,526,012,000 after buying an additional 740,664 shares during the last quarter. Vanguard Group Inc. grew its holdings in shares of Canadian National Railway by 15.5% during the 2nd quarter. Vanguard Group Inc. now owns 16,793,837 shares of the transportation company’s stock worth $1,361,140,000 after purchasing an additional 2,251,612 shares in the last quarter. Harding Loevner LP grew its holdings in shares of Canadian National Railway by 7.4% during the 2nd quarter. Harding Loevner LP now owns 6,159,203 shares of the transportation company’s stock worth $499,203,000 after purchasing an additional 422,533 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its holdings in shares of Canadian National Railway by 363.0% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 5,913,974 shares of the transportation company’s stock worth $479,249,000 after purchasing an additional 4,636,737 shares in the last quarter. Finally, William Blair Investment Management LLC grew its holdings in shares of Canadian National Railway by 34.7% during the 2nd quarter. William Blair Investment Management LLC now owns 4,474,642 shares of the transportation company’s stock worth $362,542,000 after purchasing an additional 1,152,495 shares in the last quarter. 54.25% of the stock is currently owned by institutional investors and hedge funds.
About Canadian National Railway
Canadian National Railway Company is engaged in the rail and related transportation business. The Company’s network of approximately 20,000 route miles of track spans Canada and mid-America, connecting approximately three coasts, including the Atlantic, the Pacific and the Gulf of Mexico and serving the cities and ports of Vancouver, Prince Rupert (British Columbia), Montreal, Halifax, New Orleans, and Mobile (Alabama), and the metropolitan areas of Toronto, Edmonton, Winnipeg, Calgary, Chicago, Memphis, Detroit, Duluth (Minnesota)/Superior (Wisconsin), and Jackson (Mississippi), with connections to all points in North America.
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