why Kansas City Southern [KSU] is a Good Choice for Investors After New Price Target of $197.15

Kansas City Southern [NYSE: KSU] jumped around 5.4 points on Tuesday, while shares priced at $183.52 at the close of the session, up 3.03%. The company report on November 4, 2020 that KCS’ Mike Upchurch to Address the Stephens Annual Investment Conference 2020.

Kansas City Southern (KCS) (NYSE: KSU) Executive Vice President and Chief Financial Officer, Michael W. Upchurch, will address the Stephens Annual Investment Conference 2020 at 8:00 a.m. eastern time on Tuesday, November 17, 2020. Interested investors not attending the conference may listen to the presentation via a simultaneous webcast on KCS’ website at http://investors.kcsouthern.com. A link to the replay will be available following the event.

Headquartered in Kansas City, Mo., Kansas City Southern (KCS) (NYSE: KSU) is a transportation holding company that has railroad investments in the U.S., Mexico and Panama. Its primary U.S. holding is The Kansas City Southern Railway Company, serving the central and south central U.S. Its international holdings include Kansas City Southern de Mexico, S.A. de C.V., serving northeastern and central Mexico and the port cities of Lázaro Cárdenas, Tampico and Veracruz, and a 50 percent interest in Panama Canal Railway Company, providing ocean-to-ocean freight and passenger service along the Panama Canal. KCS’ North American rail holdings and strategic alliances are primary components of a railway network, linking the commercial and industrial centers of the U.S., Mexico and Canada. More information about KCS can be found at www.kcsouthern.com.

Kansas City Southern stock is now 19.82% up from its year-to-date (YTD) trading value. KSU Stock saw the intraday high of $186.14 and lowest of $180.04 per share. The company’s 52-week high price is 200.00, which means current price is +97.63% above from all time high which was touched on 09/09/20.

Compared to the average trading volume of 961.10K shares, KSU reached a trading volume of 1119987 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Kansas City Southern [KSU]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for KSU shares is $197.15 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on KSU stock is a recommendation set at 2.30. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Wolfe Research have made an estimate for Kansas City Southern shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on October 19, 2020. While these analysts kept the previous recommendation, BMO Capital Markets raised their target price from $200 to $205. The new note on the price target was released on October 19, 2020, representing the official price target for Kansas City Southern stock. Previously, the target price had yet another raise from $193 to $203, while Cowen kept a Outperform rating on KSU stock.

The Average True Range (ATR) for Kansas City Southern is set at 4.98, with the Price to Sales ratio for KSU stock in the period of the last 12 months amounting to 6.40. The Price to Book ratio for the last quarter was 3.86, with the Price to Cash per share for the same quarter was set at 6.94. Price to Free Cash Flow for KSU in the course of the last twelve months was 20.43 with Quick ratio for the last quarter at 2.00.

How has KSU stock performed recently?

Kansas City Southern [KSU] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 4.18. With this latest performance, KSU shares gained by 1.30% in over the last four-week period, additionally plugging by 44.22% over the last 6 months – not to mention a rise of 22.87% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for KSU stock in for the last two-week period is set at 54.15, with the RSI for the last a single of trading hit 59.43, and the three-weeks RSI is set at 54.03 for Kansas City Southern [KSU]. The present Moving Average for the last 50 days of trading for this stock 182.79, while it was recorded at 177.25 for the last single week of trading, and 158.36 for the last 200 days.

Kansas City Southern [KSU]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Kansas City Southern [KSU] shares currently have an operating margin of +36.81 and a Gross Margin at +36.81. Kansas City Southern’s Net Margin is presently recorded at +18.80.

Return on Total Capital for KSU is now 13.23, given the latest momentum, and Return on Invested Capital for the company is 7.08. Return on Equity for this stock inclined to 11.67, with Return on Assets sitting at 5.53. When it comes to the capital structure of this company, Kansas City Southern [KSU] has a Total Debt to Total Equity ratio set at 76.36. Additionally, KSU Total Debt to Total Capital is recorded at 43.30, with Total Debt to Total Assets ending up at 34.04. Long-Term Debt to Equity for the company is recorded at 75.02, with the Long-Term Debt to Total Capital now at 42.49.

Reflecting on the efficiency of the workforce at the company, Kansas City Southern [KSU] managed to generate an average of $76,548 per employee. Receivables Turnover for the company is 9.96 with a Total Asset Turnover recorded at a value of 0.29.Kansas City Southern’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.00 and a Current Ratio set at 2.30.

Earnings analysis for Kansas City Southern [KSU]

With the latest financial reports released by the company, Kansas City Southern posted 1.82/share EPS, while the average EPS was predicted by analysts to be reported at 1.84/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -1.10%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for KSU. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Kansas City Southern go to 10.94%.

Insider trade positions for Kansas City Southern [KSU]

There are presently around $15,373 million, or 92.80% of KSU stock, in the hands of institutional investors. The top three institutional holders of KSU stocks are: VANGUARD GROUP INC with ownership of 10,449,740, which is approximately -4.99% of the company’s market cap and around 0.40% of the total institutional ownership; MASSACHUSETTS FINANCIAL SERVICES CO /MA/, holding 7,668,859 shares of the stock with an approximate value of $1.41 billion in KSU stocks shares; and BLACKROCK INC., currently with $1.33 billion in KSU stock with ownership of nearly -0.189% of the company’s market capitalization.

Positions in Kansas City Southern stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 300 institutional holders increased their position in Kansas City Southern [NYSE:KSU] by around 8,403,459 shares. Additionally, 345 investors decreased positions by around 10,297,638 shares, while 106 investors held positions by with 65,063,798 shares. The mentioned changes placed institutional holdings at 83,764,895 shares, according to the latest SEC report filing. KSU stock had 103 new institutional investments in for a total of 4,110,005 shares, while 66 institutional investors sold positions of 1,523,749 shares during the same period.

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