Zacks Investment Research upgraded shares of Canadian National Railway (NYSE:CNI) (TSE:CNR) from a sell rating to a hold rating in a report issued on Monday morning.
According to Zacks, “Canadian National Railway Company's fourth-quarter results should benefit from volume growth at its key units like Overseas Intermodal, Frac sand, Coal and Petroleum coke exports, and Canadian grain. Rail freight revenues should also rise substantially in the quarter. Results will be available on Jan 23. The company's efforts to reward shareholders through dividend payments and share buybacks are also impressive. However, high fuel costs might hurt the company's fourth-quarter results as well, as was the case in the previous quarter. Deterioration in operating ratio is also a matter of concern. Declining revenues at the forest products, and grain and fertilizers segment might hurt the top line going forward. Shares of the company have underperformed its industry in the last three months.”
A number of other research analysts have also commented on CNI. Cowen reiterated a buy rating and set a $83.00 price objective on shares of Canadian National Railway in a research note on Sunday, September 24th. Stifel Nicolaus reiterated a hold rating and set a $89.00 price objective on shares of Canadian National Railway in a research note on Friday, October 6th. Royal Bank of Canada reiterated an outperform rating on shares of Canadian National Railway in a research note on Wednesday, October 25th. Desjardins upgraded shares of Canadian National Railway from a hold rating to a buy rating in a research note on Wednesday, October 25th. Finally, Raymond James Financial lowered shares of Canadian National Railway from an outperform rating to a market perform rating in a research note on Wednesday, October 25th. One analyst has rated the stock with a sell rating, nine have issued a hold rating and eight have assigned a buy rating to the company’s stock. Canadian National Railway has a consensus rating of Hold and an average price target of $79.67.
Canadian National Railway (NYSE:CNI) (TSE:CNR) last released its quarterly earnings results on Tuesday, October 24th. The transportation company reported $1.05 earnings per share for the quarter, missing the Zacks’ consensus estimate of $1.06 by ($0.01). Canadian National Railway had a net margin of 29.98% and a return on equity of 25.57%. sell-side analysts forecast that Canadian National Railway will post 3.96 EPS for the current year.
The business also recently disclosed a quarterly dividend, which was paid on Friday, December 29th. Investors of record on Friday, December 8th were paid a dividend of $0.3304 per share. This represents a $1.32 dividend on an annualized basis and a dividend yield of 1.64%. The ex-dividend date was Thursday, December 7th. This is a positive change from Canadian National Railway’s previous quarterly dividend of $0.33. Canadian National Railway’s dividend payout ratio (DPR) is currently 33.59%.
Canadian National Railway declared that its board has initiated a stock buyback program on Tuesday, October 24th that allows the company to repurchase 31,000,000 outstanding shares. This repurchase authorization allows the transportation company to reacquire shares of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s board believes its stock is undervalued.
A number of institutional investors have recently bought and sold shares of the business. Harding Loevner LP grew its position in Canadian National Railway by 2,838.1% in the third quarter. Harding Loevner LP now owns 180,965,047 shares of the transportation company’s stock worth $366,305,000 after buying an additional 174,805,844 shares during the last quarter. Vanguard Group Inc. grew its position in Canadian National Railway by 15.5% in the second quarter. Vanguard Group Inc. now owns 16,793,837 shares of the transportation company’s stock worth $1,361,140,000 after buying an additional 2,251,612 shares during the last quarter. Caisse DE Depot ET Placement DU Quebec grew its position in Canadian National Railway by 0.3% in the third quarter. Caisse DE Depot ET Placement DU Quebec now owns 15,870,472 shares of the transportation company’s stock worth $1,317,389,000 after buying an additional 46,700 shares during the last quarter. Jarislowsky Fraser Ltd grew its position in Canadian National Railway by 0.3% in the third quarter. Jarislowsky Fraser Ltd now owns 10,255,502 shares of the transportation company’s stock worth $847,732,000 after buying an additional 25,974 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership grew its position in Canadian National Railway by 363.0% in the second quarter. Arrowstreet Capital Limited Partnership now owns 5,913,974 shares of the transportation company’s stock worth $479,249,000 after buying an additional 4,636,737 shares during the last quarter. Hedge funds and other institutional investors own 53.73% of the company’s stock.
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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