For Canadian Pacific Railway Limited [CP], Analyst sees a rise to $80. What next?

Canadian Pacific Railway Limited [NYSE: CP] plunged by -$0.1 during the normal trading session on Wednesday and reaching a high of $72.53 during the day while it closed the day at $71.99. The company report on July 29, 2021 that On strength of safety and service CP reports record Q2 revenues of $2.05 billion.

Canadian Pacific Railway Limited (TSX: CP) (NYSE: CP) announced second-quarter operating results, including record Q2 revenues of $2.05 billion, an operating ratio (“OR”) of 60.1 percent, record Q2 adjusted OR of 55.3 percent, record diluted earnings per share (“EPS”) of $1.86 and record adjusted diluted EPS of $1.03.

“Our industry-leading team of railroaders delivered another record quarter. I am particularly proud of our all-time record safety performance made possible by the collective efforts of the over 12,000-strong CP family,” said Keith Creel, CP President and Chief Executive Officer. “The robust base demand environment coupled with our unique growth opportunities has CP extremely well positioned as we head into the second half of the year.”.

Canadian Pacific Railway Limited stock has also loss -0.43% of its value over the past 7 days. However, CP stock has declined by -3.91% in the 3 months of the year. Over the past six months meanwhile, it has gained 8.98% and gained 3.82% year-on date.

The market cap for CP stock reached $9.60 billion, with 133.32 million shares outstanding. Compared to the average trading volume of 2.32M shares, CP reached a trading volume of 2536648 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about Canadian Pacific Railway Limited [CP]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for CP shares is $86.75 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on CP 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.

Stifel have made an estimate for Canadian Pacific Railway Limited shares, keeping their opinion on the stock as Hold, with their previous recommendation back on June 22, 2021. While these analysts kept the previous recommendation, Evercore ISI raised their target price to In-line. The new note on the price target was released on May 25, 2021, representing the official price target for Canadian Pacific Railway Limited stock. Previously, the target price had yet another raise from $390 to $440, while Barclays kept a Overweight rating on CP stock.

The Average True Range (ATR) for Canadian Pacific Railway Limited is set at 1.43, with the Price to Sales ratio for CP stock in the period of the last 12 months amounting to 1.26. The Price to Book ratio for the last quarter was 1.22.

CP stock trade performance evaluation

Canadian Pacific Railway Limited [CP] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -0.43. With this latest performance, CP shares dropped by -6.24% in over the last four-week period, additionally plugging by 8.98% over the last 6 months – not to mention a rise of 31.01% 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 CP stock in for the last two-week period is set at 39.64, with the RSI for the last a single of trading hit 39.52, and the three-weeks RSI is set at 40.75 for Canadian Pacific Railway Limited [CP]. The present Moving Average for the last 50 days of trading for this stock 77.16, while it was recorded at 72.74 for the last single week of trading, and 72.04 for the last 200 days.

Canadian Pacific Railway Limited [CP]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Canadian Pacific Railway Limited [CP] shares currently have an operating margin of +42.81 and a Gross Margin at +44.66. Canadian Pacific Railway Limited’s Net Margin is presently recorded at +31.70.

Return on Total Capital for CP is now 19.66, given the latest momentum, and Return on Invested Capital for the company is 15.44. Return on Equity for this stock inclined to 33.97, with Return on Assets sitting at 10.54. When it comes to the capital structure of this company, Canadian Pacific Railway Limited [CP] has a Total Debt to Total Equity ratio set at 137.75. Additionally, CP Total Debt to Total Capital is recorded at 57.94, with Total Debt to Total Assets ending up at 42.33. Long-Term Debt to Equity for the company is recorded at 120.69, with the Long-Term Debt to Total Capital now at 50.76.

Reflecting on the efficiency of the workforce at the company, Canadian Pacific Railway Limited [CP] managed to generate an average of $205,551 per employee. Receivables Turnover for the company is 9.46 with a Total Asset Turnover recorded at a value of 0.33.

Earnings per share (EPS) analysis for Canadian Pacific Railway Limited [CP] stock

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 CP. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Canadian Pacific Railway Limited go to 8.59%.

Canadian Pacific Railway Limited [CP]: Insider Ownership positions

There are presently around $34,556 million, or 89.11% of CP stock, in the hands of institutional investors. The top three institutional holders of CP stocks are: TCI FUND MANAGEMENT LTD with ownership of 55,860,385, which is approximately 0% of the company’s market cap and around 0.02% of the total institutional ownership; ROYAL BANK OF CANADA, holding 39,985,640 shares of the stock with an approximate value of $2.88 billion in CP stocks shares; and FMR LLC, currently with $2.63 billion in CP stock with ownership of nearly 48.079% of the company’s market capitalization.

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Positions in Canadian Pacific Railway Limited stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 268 institutional holders increased their position in Canadian Pacific Railway Limited [NYSE:CP] by around 41,129,821 shares. Additionally, 203 investors decreased positions by around 24,008,085 shares, while 127 investors held positions by with 414,875,920 shares. The mentioned changes placed institutional holdings at 480,013,826 shares, according to the latest SEC report filing. CP stock had 74 new institutional investments in for a total of 5,816,224 shares, while 41 institutional investors sold positions of 5,758,965 shares during the same period.

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