Kansas City Southern (NYSE:KSU) Sees Large Growth in Short Interest

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Kansas City Southern (NYSE:KSU) saw a large increase in short interest in August. As of August 31st, there was short interest totalling 2,499,600 shares, an increase of 51.0% from the July 31st total of 1,655,600 shares. Currently, 2.5% of the company’s stock are short sold. Based on an average trading volume of 934,900 shares, the days-to-cover ratio is presently 2.7 days.

In related news, Director Robert J. Druten sold 2,500 shares of the stock in a transaction dated Monday, July 22nd. The shares were sold at an average price of $125.04, for a total value of $312,600.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, General Counsel Adam J. Godderz sold 1,390 shares of the stock in a transaction dated Monday, July 22nd. The stock was sold at an average price of $125.13, for a total transaction of $173,930.70. Following the completion of the transaction, the general counsel now owns 4,892 shares of the company’s stock, valued at $612,135.96. The disclosure for this sale can be found here. Over the last quarter, insiders sold 11,730 shares of company stock valued at $1,482,378. 0.82% of the stock is owned by company insiders.

Institutional investors and hedge funds have recently modified their holdings of the company. River & Mercantile Asset Management LLP purchased a new stake in Kansas City Southern in the second quarter worth about $1,050,000. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp lifted its stake in Kansas City Southern by 4.0% in the second quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 29,511 shares of the transportation company’s stock worth $3,595,000 after acquiring an additional 1,129 shares during the period. Hancock Whitney Corp lifted its stake in Kansas City Southern by 2.0% in the second quarter. Hancock Whitney Corp now owns 5,265 shares of the transportation company’s stock worth $641,000 after acquiring an additional 105 shares during the period. Rehmann Capital Advisory Group lifted its stake in Kansas City Southern by 81.3% in the second quarter. Rehmann Capital Advisory Group now owns 223 shares of the transportation company’s stock worth $27,000 after acquiring an additional 100 shares during the period. Finally, Boston Partners lifted its stake in Kansas City Southern by 98.9% in the second quarter. Boston Partners now owns 5,008,266 shares of the transportation company’s stock worth $610,100,000 after acquiring an additional 2,490,256 shares during the period. 87.12% of the stock is owned by hedge funds and other institutional investors.

KSU has been the subject of a number of analyst reports. Credit Suisse Group raised their price objective on shares of Kansas City Southern from $134.00 to $140.00 and gave the company an “outperform” rating in a research note on Monday, July 22nd. Loop Capital raised their price objective on shares of Kansas City Southern to $144.00 and gave the company a “buy” rating in a research note on Monday, July 22nd. Morgan Stanley raised their price objective on shares of Kansas City Southern from $111.00 to $121.00 and gave the company an “equal weight” rating in a research note on Monday, July 22nd. JPMorgan Chase & Co. raised their price objective on shares of Kansas City Southern from $130.00 to $136.00 and gave the company a “neutral” rating in a research note on Monday, July 22nd. Finally, Cowen set a $136.00 price objective on shares of Kansas City Southern and gave the company a “buy” rating in a research note on Friday, July 19th. Six analysts have rated the stock with a hold rating, ten have issued a buy rating and one has issued a strong buy rating to the company’s stock. Kansas City Southern has an average rating of “Buy” and a consensus price target of $130.36.

Shares of KSU stock traded up $0.61 during trading hours on Friday, reaching $133.09. The company had a trading volume of 947,359 shares, compared to its average volume of 1,032,546. The business has a fifty day moving average price of $122.89 and a 200-day moving average price of $119.55. Kansas City Southern has a one year low of $90.55 and a one year high of $133.74. The firm has a market cap of $13.30 billion, a PE ratio of 22.29, a price-to-earnings-growth ratio of 1.32 and a beta of 0.92. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.59 and a current ratio of 0.79.

Kansas City Southern (NYSE:KSU) last issued its quarterly earnings results on Friday, July 19th. The transportation company reported $1.64 earnings per share for the quarter, beating the consensus estimate of $1.60 by $0.04. The business had revenue of $714.00 million for the quarter, compared to the consensus estimate of $704.55 million. Kansas City Southern had a net margin of 20.35% and a return on equity of 12.45%. The company’s revenue for the quarter was up 4.6% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.54 earnings per share. Equities research analysts forecast that Kansas City Southern will post 6.74 EPS for the current year.

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 2nd. Stockholders of record on Monday, September 9th will be paid a dividend of $0.36 per share. This represents a $1.44 dividend on an annualized basis and a dividend yield of 1.08%. The ex-dividend date of this dividend is Friday, September 6th. Kansas City Southern’s dividend payout ratio is currently 24.12%.

About Kansas City Southern

Kansas City Southern, a transportation holding company, provides domestic and international rail transportation services in North America. The company 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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