Canadian National Railway (NYSE:CNI) Cut to Sell at Zacks Investment Research

Zacks Investment Research downgraded shares of Canadian National Railway (NYSE:CNI) (TSE:CNR) from a hold rating to a sell rating in a research report released on Thursday, Zacks.com reports. Zacks Investment Research currently has $99.00 price target on the transportation company’s stock.

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According to Zacks, “Canadian National delivered better-than-expected earnings in third-quarter of 2019. Moreover, the bottom line improved year over year. Freight revenues too climbed 4% year over year and aided the top line. Improvement in the operating ratio in the third quarter is also encouraging. The company’s efforts to add shareholder value is another positive. During the first nine months of 2019, Canadian National repurchased shares worth $1.27 billion. However, sluggish global economy is affecting its volumes. As a result, the company now anticipates RTMs to witness negative volume growth in the current year compared with the earlier prediction of a mid-single-digit volume expansion. The company has also lowered its earnings expectation for 2019. Shares of the company have underperformed its industry in a year's time, mainly due to soft volumes.”

CNI has been the subject of several other reports. Stephens downgraded Canadian National Railway from an overweight rating to an equal rating and lowered their target price for the company from $100.00 to $97.00 in a research note on Tuesday, October 1st. Royal Bank of Canada set a $137.00 target price on Canadian National Railway and gave the company a hold rating in a research note on Friday, September 13th. Wells Fargo & Co started coverage on Canadian National Railway in a research note on Monday, October 28th. They set a market perform rating and a $88.00 target price for the company. Bank of America upgraded Canadian National Railway from a neutral rating to a buy rating and raised their target price for the company from $94.00 to $100.00 in a research note on Wednesday, October 16th. Finally, Credit Suisse Group raised their target price on Canadian National Railway from $101.00 to $104.00 and gave the company an outperform rating in a research note on Wednesday, July 24th. One investment analyst has rated the stock with a sell rating, twelve have given a hold rating and five have issued a buy rating to the company. Canadian National Railway currently has an average rating of Hold and a consensus price target of $102.59.

Shares of Canadian National Railway stock traded down $0.17 during trading hours on Thursday, hitting $94.64. 799,491 shares of the company’s stock traded hands, compared to its average volume of 879,536. The stock has a 50 day simple moving average of $88.64 and a 200-day simple moving average of $91.55. The company has a quick ratio of 0.57, a current ratio of 0.71 and a debt-to-equity ratio of 0.65. The company has a market cap of $68.03 billion, a PE ratio of 22.75, a PEG ratio of 2.06 and a beta of 1.01. Canadian National Railway has a twelve month low of $70.36 and a twelve month high of $96.49.

Canadian National Railway (NYSE:CNI) (TSE:CNR) last announced its earnings results on Tuesday, October 22nd. The transportation company reported $1.66 earnings per share for the quarter, beating the consensus estimate of $1.27 by $0.39. The company had revenue of $3.81 billion during the quarter, compared to the consensus estimate of $3.87 billion. Canadian National Railway had a return on equity of 24.36% and a net margin of 29.62%. The company’s revenue was up 3.3% on a year-over-year basis. During the same period last year, the firm earned $1.50 earnings per share. As a group, equities research analysts predict that Canadian National Railway will post 4.56 EPS for the current year.

The company also recently declared a quarterly dividend, which will be paid on Monday, December 30th. Investors of record on Monday, December 9th will be paid a $0.406 dividend. The ex-dividend date of this dividend is Friday, December 6th. This represents a $1.62 dividend on an annualized basis and a yield of 1.72%. Canadian National Railway’s dividend payout ratio (DPR) is 39.18%.

A number of large investors have recently bought and sold shares of the stock. Cetera Investment Advisers grew its stake in Canadian National Railway by 13.3% in the third quarter. Cetera Investment Advisers now owns 7,080 shares of the transportation company’s stock worth $637,000 after purchasing an additional 829 shares in the last quarter. First Allied Advisory Services Inc. acquired a new position in Canadian National Railway in the third quarter worth about $220,000. Cetera Advisor Networks LLC grew its stake in Canadian National Railway by 6.8% in the third quarter. Cetera Advisor Networks LLC now owns 6,900 shares of the transportation company’s stock worth $620,000 after purchasing an additional 440 shares in the last quarter. Maj Invest Holding A S grew its stake in Canadian National Railway by 2.7% in the third quarter. Maj Invest Holding A S now owns 1,354,087 shares of the transportation company’s stock worth $121,662,000 after purchasing an additional 36,111 shares in the last quarter. Finally, BBVA USA Bancshares Inc. acquired a new position in Canadian National Railway in the third quarter worth about $234,000. Institutional investors and hedge funds own 53.26% of the company’s stock.

Canadian National Railway Company Profile

Canadian National Railway Company engages in rail and related transportation business. The company transports cargo serving exporters, importers, retailers, farmers, and manufacturers. It operates a network of approximately 20,000 route miles of track spans Canada and mid-America connecting the Atlantic, the Pacific, and the Gulf of Mexico.

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Analyst Recommendations for Canadian National Railway (NYSE:CNI)

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