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 Thursday 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. The company's efforts to reward shareholders through dividend payments and share buybacks are also impressive. Additionally, the $2.6 billion capital plan announced by the company in April 2017 is aslo encouraging. However, high high fuel costs might hurt the company's fourth-quarter results as well. 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. The company's high debt levels further adds to its woes. In fact, shares of the company have underperformed its industry over the last three months.”
CNI has been the subject of several other reports. Royal Bank of Canada restated an outperform rating on shares of Canadian National Railway in a research report on Wednesday, October 25th. Goldman Sachs Group began coverage on Canadian National Railway in a research report on Monday, November 13th. They set a buy rating and a $85.00 price target for the company. Stifel Nicolaus restated a hold rating and set a $89.00 price target on shares of Canadian National Railway in a research report on Friday, October 6th. TD Securities upgraded Canadian National Railway from a hold rating to a buy rating in a report on Thursday, November 30th. They noted that the move was a valuation call. Finally, CIBC upgraded Canadian National Railway from a neutral rating to a sector outperform rating in a report on Wednesday, November 8th. One investment analyst has rated the stock with a sell rating, ten have issued a hold rating and eight have assigned a buy rating to the company. The company currently has a consensus rating of Hold and a consensus target price of $79.67.
Canadian National Railway (CNI) traded up $0.69 on Thursday, hitting $84.95. The stock had a trading volume of 667,800 shares, compared to its average volume of 734,108. Canadian National Railway has a 1-year low of $68.27 and a 1-year high of $85.73. The stock has a market capitalization of $63,381.19, a price-to-earnings ratio of 21.78, a P/E/G ratio of 2.12 and a beta of 1.09. The company has a debt-to-equity ratio of 0.58, a quick ratio of 0.49 and a current ratio of 0.61.
The business also recently announced a quarterly dividend, which was paid on Friday, December 29th. Investors of record on Friday, December 8th were issued a $0.3304 dividend. The ex-dividend date of this dividend was Thursday, December 7th. This is a positive change from Canadian National Railway’s previous quarterly dividend of $0.33. This represents a $1.32 dividend on an annualized basis and a yield of 1.56%. Canadian National Railway’s dividend payout ratio (DPR) is 33.59%.
Canadian National Railway declared that its board has initiated a share buyback plan on Tuesday, October 24th that authorizes the company to repurchase 31,000,000 shares. This repurchase authorization authorizes the transportation company to repurchase shares of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s management believes its stock is undervalued.
A number of large investors have recently added to or reduced their stakes in CNI. Jarislowsky Fraser Ltd lifted its holdings in Canadian National Railway by 0.3% during the 3rd 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. Oppenheimer & Co. Inc. lifted its holdings in Canadian National Railway by 82.0% during the 3rd quarter. Oppenheimer & Co. Inc. now owns 91,516 shares of the transportation company’s stock worth $7,582,000 after buying an additional 41,233 shares during the last quarter. Eaton Vance Management lifted its holdings in Canadian National Railway by 5,323.4% during the 2nd quarter. Eaton Vance Management now owns 203,757 shares of the transportation company’s stock worth $16,515,000 after buying an additional 200,000 shares during the last quarter. Northwestern Mutual Wealth Management Co. lifted its holdings in Canadian National Railway by 5.1% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 122,795 shares of the transportation company’s stock worth $9,952,000 after buying an additional 5,955 shares during the last quarter. Finally, FDx Advisors Inc. lifted its holdings in Canadian National Railway by 20.2% during the 3rd quarter. FDx Advisors Inc. now owns 26,238 shares of the transportation company’s stock worth $2,174,000 after buying an additional 4,411 shares during the last quarter. Hedge funds and other institutional investors own 53.73% of the company’s stock.
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Canadian National Railway Company Profile
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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