Canadian National Railway (CNI) Upgraded by Zacks Investment Research to Hold
Canadian National Railway (NYSE:CNI) (TSE:CNR) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued on Monday.
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 brokerages have also commented on CNI. Raymond James Financial lowered Canadian National Railway from an “outperform” rating to a “market perform” rating in a research report on Wednesday, October 25th. Desjardins upgraded Canadian National Railway from a “hold” rating to a “buy” rating in a research report on Wednesday, October 25th. Royal Bank of Canada reiterated an “outperform” rating on shares of Canadian National Railway in a research report on Wednesday, October 25th. Cowen restated a “buy” rating and issued a $83.00 price objective on shares of Canadian National Railway in a research report on Sunday, September 24th. Finally, Goldman Sachs Group initiated coverage on Canadian National Railway in a research report on Monday, November 13th. They issued a “buy” rating and a $85.00 price objective on the stock. One investment analyst has rated the stock with a sell rating, nine have given a hold rating and eight have assigned a buy rating to the company’s stock. The stock has a consensus rating of “Hold” and a consensus price target of $79.67.
Shares of Canadian National Railway (NYSE CNI) opened at $81.18 on Monday. The company has a market capitalization of $60,404.25, a P/E ratio of 20.82, a P/E/G ratio of 2.01 and a beta of 1.09. Canadian National Railway has a 52-week low of $68.27 and a 52-week high of $85.73. The company has a debt-to-equity ratio of 0.58, a current ratio of 0.61 and a quick ratio of 0.49.
Canadian National Railway (NYSE:CNI) (TSE:CNR) last issued its earnings results on Tuesday, October 24th. The transportation company reported $1.05 EPS 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%. equities analysts expect that Canadian National Railway will post 3.96 EPS for the current year.
Canadian National Railway announced that its board has approved a stock buyback program on Tuesday, October 24th that authorizes the company to repurchase 31,000,000 outstanding shares. This repurchase authorization authorizes the transportation company to reacquire shares of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s management believes its stock is undervalued.
A number of institutional investors have recently added to or reduced their stakes in the business. Atria Investments LLC boosted its position in Canadian National Railway by 15.3% in the 4th quarter. Atria Investments LLC now owns 5,356 shares of the transportation company’s stock worth $442,000 after purchasing an additional 710 shares in the last quarter. Montrusco Bolton Investments Inc. boosted its position in Canadian National Railway by 2.1% in the 4th quarter. Montrusco Bolton Investments Inc. now owns 331,384 shares of the transportation company’s stock worth $27,414,000 after purchasing an additional 6,834 shares in the last quarter. Addenda Capital Inc. lifted its position in shares of Canadian National Railway by 16.0% during the 4th quarter. Addenda Capital Inc. now owns 604,928 shares of the transportation company’s stock valued at $50,041,000 after buying an additional 83,245 shares in the last quarter. CGOV Asset Management lifted its position in shares of Canadian National Railway by 13.7% during the 4th quarter. CGOV Asset Management now owns 1,334,912 shares of the transportation company’s stock valued at $138,364,000 after buying an additional 161,182 shares in the last quarter. Finally, Jaffetilchin Investment Partners LLC purchased a new position in shares of Canadian National Railway during the 4th quarter valued at approximately $684,000. Institutional investors and hedge funds own 53.73% of the company’s stock.
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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