Canadian Pacific Railway Limited [CP] is -5.55% lower this YTD. Is it still time to buy?

Canadian Pacific Railway Limited [NYSE: CP] slipped around -1.74 points on Monday, while shares priced at $65.49 at the close of the session, down -2.59%. The company report on September 15, 2021 that Canadian Pacific and Kansas City Southern Execute Agreement to Combine, Creating First Single-Line Rail Network Linking U.S.-Mexico-Canada.

Stock and Cash Transaction Represents an Enterprise Value of Approximately $31 Billion.

Expected to Create Annualized Synergies of Approximately $1 Billion within Three Years.

Canadian Pacific Railway Limited stock is now -5.55% down from its year-to-date (YTD) trading value. CP Stock saw the intraday high of $66.49 and lowest of $64.52 per share. The company’s 52-week high price is 83.07, which means current price is +1.50% above from all time high which was touched on 05/24/21.

Compared to the average trading volume of 3.93M shares, CP reached a trading volume of 8266103 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus 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 $82.30 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 2.40. 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.

Argus have made an estimate for Canadian Pacific Railway Limited shares, keeping their opinion on the stock as Hold, with their previous recommendation back on August 12, 2021. While these analysts kept the previous recommendation, Stifel raised their target price to Hold. The new note on the price target was released on June 22, 2021, representing the official price target for Canadian Pacific Railway Limited stock. Previously, the target price had yet another raise to $83, while Evercore ISI analysts kept a In-line rating on CP stock. On April 15, 2021, analysts increased their price target for CP shares from 390 to 440.

The Average True Range (ATR) for Canadian Pacific Railway Limited is set at 1.77, with the Price to Sales ratio for CP stock in the period of the last 12 months amounting to 7.13. The Price to Book ratio for the last quarter was 4.87, with the Price to Cash per share for the same quarter was set at 1.04. Price to Free Cash Flow for CP in the course of the last twelve months was 28.57 with Quick ratio for the last quarter at 0.60.

How has CP stock performed recently?

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 -4.46. With this latest performance, CP shares dropped by -7.55% in over the last four-week period, additionally sinking by -8.16% over the last 6 months – not to mention a rise of 8.91% 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 32.53, with the RSI for the last a single of trading hit 27.79, and the three-weeks RSI is set at 35.35 for Canadian Pacific Railway Limited [CP]. The present Moving Average for the last 50 days of trading for this stock 71.61, while it was recorded at 67.57 for the last single week of trading, and 73.35 for the last 200 days.

Canadian Pacific Railway Limited [CP]: Deeper insight into the 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.Canadian Pacific Railway Limited’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.60 and a Current Ratio set at 0.70.

Earnings analysis for Canadian Pacific Railway Limited [CP]

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 9.15%.

Insider trade positions for Canadian Pacific Railway Limited [CP]

There are presently around $31,097 million, or 69.50% 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 38,873,677 shares of the stock with an approximate value of $2.55 billion in CP stocks shares; and FMR LLC, currently with $2.27 billion in CP stock with ownership of nearly -5.406% 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 217 institutional holders increased their position in Canadian Pacific Railway Limited [NYSE:CP] by around 24,989,483 shares. Additionally, 264 investors decreased positions by around 28,458,102 shares, while 122 investors held positions by with 421,383,156 shares. The mentioned changes placed institutional holdings at 474,830,741 shares, according to the latest SEC report filing. CP stock had 48 new institutional investments in for a total of 2,222,036 shares, while 53 institutional investors sold positions of 4,834,130 shares during the same period.

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