Canadian Pacific Railway Limited [CP] Revenue clocked in at $7.97 billion, up 3.00% YTD: What’s Next?


Canadian Pacific Railway Limited [NYSE: CP] gained 0.24% or 0.17 points to close at $71.42 with a heavy trading volume of 5459621 shares. The company report on December 23, 2021 that CP and Canpotex enter new long-term agreement.

Canadian Pacific Railway Limited (TSX: CP) (NYSE: CP) today announced the execution of a new long-term agreement with Canpotex Limited further cementing the long-standing relationship between the two companies and supporting Canpotex’s future growth.

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“We are pleased to have entered into this agreement and incredibly proud to continue our successful relationship with Canpotex,” said Keith Creel, CP President and CEO. “Canpotex and CP are like-minded organizations, focused on asset utilization and efficiency. This long-standing relationship makes sense for us both. We look forward to the opportunity to continue serving Canpotex and supporting growth.”.

It opened the trading session at $71.635, the shares rose to $71.96 and dropped to $71.04, the range by which the price of stock traded the whole day. The daily chart for CP points out that the company has recorded -6.98% loss over the past six months. However, it is still -10.95% lower than its most recent low trading price.

If we look at the average trading volume of 5.07M shares, CP reached to a volume of 5459621 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying 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.

Deutsche Bank have made an estimate for Canadian Pacific Railway Limited shares, keeping their opinion on the stock as Hold, with their previous recommendation back on November 29, 2021. While these analysts kept the previous recommendation, Atlantic Equities raised their target price to Overweight. The new note on the price target was released on November 16, 2021, representing the official price target for Canadian Pacific Railway Limited stock.

The Average True Range (ATR) for Canadian Pacific Railway Limited is set at 1.87, with the Price to Sales ratio for CP stock in the period of the last 12 months amounting to 7.68. The Price to Book ratio for the last quarter was 5.03, with the Price to Cash per share for the same quarter was set at 0.25. Price to Free Cash Flow for CP in the course of the last twelve months was 28.87 with Quick ratio for the last quarter at 0.30.

Trading performance analysis for CP stock

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 -1.29. With this latest performance, CP shares dropped by -4.38% in over the last four-week period, additionally sinking by -6.98% over the last 6 months – not to mention a rise of 3.72% 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 45.98, with the RSI for the last a single of trading hit 45.59, and the three-weeks RSI is set at 46.74 for Canadian Pacific Railway Limited [CP]. The present Moving Average for the last 50 days of trading for this stock 74.07, while it was recorded at 71.28 for the last single week of trading, and 73.94 for the last 200 days.

Canadian Pacific Railway Limited [CP]: A deeper dive into fundamental analysis

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 0.30 and a Current Ratio set at 0.40.

Canadian Pacific Railway Limited [CP]: An earnings per share (EPS) analysis

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 8.03%.

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An analysis of insider ownership at Canadian Pacific Railway Limited [CP]

There are presently around $52,942 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; VANGUARD GROUP INC, holding 48,239,494 shares of the stock with an approximate value of $3.44 billion in CP stocks shares; and ROYAL BANK OF CANADA, currently with $2.95 billion in CP stock with ownership of nearly 4.708% of the company’s market capitalization.

Positions in Canadian Pacific Railway Limited stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 433 institutional holders increased their position in Canadian Pacific Railway Limited [NYSE:CP] by around 92,868,269 shares. Additionally, 447 investors decreased positions by around 39,268,583 shares, while 212 investors held positions by with 610,908,805 shares. The mentioned changes placed institutional holdings at 743,045,657 shares, according to the latest SEC report filing. CP stock had 81 new institutional investments in for a total of 24,996,112 shares, while 106 institutional investors sold positions of 6,191,744 shares during the same period.