Analysts’ Recent Ratings Updates for Kansas City Southern (KSU)

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A number of research firms have changed their ratings and price targets for Kansas City Southern (NYSE: KSU):

  • 9/4/2018 – Kansas City Southern is now covered by analysts at Deutsche Bank AG. They set a “hold” rating and a $119.00 price target on the stock.
  • 8/31/2018 – Kansas City Southern had its price target raised by analysts at Raymond James from $128.00 to $133.00. They now have a “strong-buy” rating on the stock.
  • 8/29/2018 – Kansas City Southern was upgraded by analysts at Cowen Inc from a “market perform” rating to an “outperform” rating. They now have a $138.00 price target on the stock, up previously from $124.00.
  • 8/28/2018 – Kansas City Southern had its price target raised by analysts at Loop Capital to $140.00. They now have a “buy” rating on the stock.
  • 7/25/2018 – Kansas City Southern was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. According to Zacks, “Kansas City Southern reported better-than-expected earnings in the second quarter of 2018. Moreover, the bottom line improved 16% year over year, buoyed by volume growth. Results were also boosted by impressive performance of the Chemical & Petroleum and Automotive units. The company's efforts to reward shareholders through dividends and share buybacks are also encouraging. However, the company reported lower-than-expected revenues in the second quarter. Moreover, operating ratio in the quater declined due to high operating expenses. Such high costs might pressurize the bottom line going forward. In fact, shares of the company have underperformed its industry in the last six months.”
  • 7/23/2018 – Kansas City Southern had its “hold” rating reaffirmed by analysts at Cowen Inc. They now have a $124.00 price target on the stock.
  • 7/23/2018 – Kansas City Southern had its price target raised by analysts at Loop Capital to $132.00. They now have a “buy” rating on the stock.
  • 7/23/2018 – Kansas City Southern had its price target raised by analysts at Morgan Stanley from $106.00 to $108.00. They now have a “$111.08” rating on the stock.
  • 7/23/2018 – Kansas City Southern had its price target raised by analysts at Credit Suisse Group AG from $125.00 to $126.00. They now have a “$111.08” rating on the stock.
  • 7/11/2018 – Kansas City Southern was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “Shares of Kansas City Southern have underperformed its industry in the last six months. The uncertainty over NAFTA is a major overhang on the stock as it has a significant Mexican exposure. The rise in operating expenses is also concerning. This may adversely affect the operating ratio going forward. The dismal performance of the Energy segment  is also worisome. The negativity revolving around the stock is evident from the Zacks Consensus estimate for second-quarter earnings being revised downward 0.6% in the last seven days. Detailed results will be out on Jul 20. However, the company has been benefitting from impressive volume growth.”
  • 7/10/2018 – Kansas City Southern was given a new $127.00 price target on by analysts at Loop Capital. They now have a “buy” rating on the stock.

Shares of KSU stock traded up $2.29 during trading hours on Wednesday, reaching $117.12. The company had a trading volume of 1,100,700 shares, compared to its average volume of 1,159,155. Kansas City Southern has a one year low of $99.47 and a one year high of $120.34. The firm has a market capitalization of $11.85 billion, a PE ratio of 22.31, a P/E/G ratio of 1.46 and a beta of 0.83. The company has a quick ratio of 0.85, a current ratio of 1.20 and a debt-to-equity ratio of 0.54.

Kansas City Southern (NYSE:KSU) last announced its quarterly earnings results on Friday, July 20th. The transportation company reported $1.54 EPS for the quarter, topping analysts’ consensus estimates of $1.52 by $0.02. Kansas City Southern had a net margin of 36.91% and a return on equity of 12.01%. The firm had revenue of $682.40 million during the quarter, compared to analyst estimates of $686.12 million. During the same period in the previous year, the business posted $1.33 earnings per share. The business’s revenue for the quarter was up 4.0% on a year-over-year basis. analysts anticipate that Kansas City Southern will post 6.11 earnings per share for the current year.

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 3rd. Stockholders of record on Monday, September 10th will be issued a $0.36 dividend. This represents a $1.44 annualized dividend and a dividend yield of 1.23%. The ex-dividend date is Friday, September 7th. Kansas City Southern’s dividend payout ratio (DPR) is presently 27.43%.

In other news, VP Suzanne M. Grafton sold 729 shares of the business’s stock in a transaction on Wednesday, August 29th. The shares were sold at an average price of $119.78, for a total value of $87,319.62. Following the transaction, the vice president now owns 10,580 shares of the company’s stock, valued at $1,267,272.40. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, CFO Michael W. Upchurch sold 5,442 shares of the business’s stock in a transaction on Thursday, July 26th. The stock was sold at an average price of $116.77, for a total transaction of $635,462.34. Following the completion of the transaction, the chief financial officer now directly owns 17,906 shares in the company, valued at approximately $2,090,883.62. The disclosure for this sale can be found here. Insiders sold 7,171 shares of company stock worth $841,712 in the last three months. Insiders own 0.70% of the company’s stock.

Hedge funds have recently added to or reduced their stakes in the company. ING Groep NV increased its position in shares of Kansas City Southern by 4.3% during the 2nd quarter. ING Groep NV now owns 10,987 shares of the transportation company’s stock worth $1,164,000 after purchasing an additional 458 shares during the last quarter. Wedbush Securities Inc. grew its position in Kansas City Southern by 20.4% in the 2nd quarter. Wedbush Securities Inc. now owns 2,955 shares of the transportation company’s stock worth $313,000 after purchasing an additional 500 shares in the last quarter. Bedell Frazier Investment Counseling LLC grew its position in Kansas City Southern by 0.7% in the 1st quarter. Bedell Frazier Investment Counseling LLC now owns 72,428 shares of the transportation company’s stock worth $7,956,000 after purchasing an additional 515 shares in the last quarter. Avalon Advisors LLC grew its position in Kansas City Southern by 0.5% in the 1st quarter. Avalon Advisors LLC now owns 97,743 shares of the transportation company’s stock worth $10,737,000 after purchasing an additional 521 shares in the last quarter. Finally, Stanley Laman Group Ltd. grew its position in Kansas City Southern by 1.0% in the 2nd quarter. Stanley Laman Group Ltd. now owns 54,092 shares of the transportation company’s stock worth $5,732,000 after purchasing an additional 548 shares in the last quarter. 87.63% of the stock is currently owned by hedge funds and other institutional investors.

Kansas City Southern, through its subsidiaries, provides domestic and international rail transportation services in North America. It serves a ten-state region in the midwest and southeast regions of the United States and has the shortest north/south rail route between Kansas City, Missouri, and ports along the Gulf of Mexico in Alabama, Louisiana, Mississippi, and Texas.

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