Kansas City Southern (NYSE:KSU) Shares Gap Up After Earnings Beat

Shares of Kansas City Southern (NYSE:KSU) gapped up prior to trading on Monday following a stronger than expected earnings report. The stock had previously closed at $149.50, but opened at $145.25. Kansas City Southern shares last traded at $146.89, with a volume of 52,412 shares traded.

The transportation company reported $1.94 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.79 by $0.15. The company had revenue of $747.70 million during the quarter, compared to the consensus estimate of $734.39 million. Kansas City Southern had a return on equity of 12.45% and a net margin of 20.35%. The firm’s revenue was up 7.0% on a year-over-year basis. During the same period in the previous year, the company posted $1.57 EPS.

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, October 2nd. Investors of record on Monday, September 9th were paid a dividend of $0.36 per share. The ex-dividend date of this dividend was Friday, September 6th. This represents a $1.44 dividend on an annualized basis and a dividend yield of 0.98%. Kansas City Southern’s dividend payout ratio (DPR) is presently 24.12%.

A number of research analysts recently issued reports on the company. Seaport Global Securities boosted their price objective on Kansas City Southern from $145.00 to $154.00 and gave the company a “buy” rating in a research note on Friday. JPMorgan Chase & Co. boosted their price objective on Kansas City Southern from $130.00 to $136.00 and gave the company a “neutral” rating in a research note on Monday, July 22nd. Citigroup set a $160.00 price objective on Kansas City Southern and gave the company a “buy” rating in a research note on Friday. Barclays set a $140.00 price objective on Kansas City Southern and gave the company a “hold” rating in a research note on Friday. Finally, Credit Suisse Group set a $158.00 price objective on Kansas City Southern and gave the company a “buy” rating in a research note on Friday. Six equities research analysts have rated the stock with a hold rating, eleven have issued a buy rating and one has issued a strong buy rating to the company’s stock. The stock currently has a consensus rating of “Buy” and an average price target of $141.63.

In related news, Director Lu M. Cordova sold 1,000 shares of the business’s stock in a transaction that occurred on Friday, July 26th. The stock was sold at an average price of $124.50, for a total value of $124,500.00. Following the transaction, the director now directly owns 1,032 shares of the company’s stock, valued at approximately $128,484. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, EVP Warren K. Erdman sold 6,840 shares of the business’s stock in a transaction that occurred on Wednesday, September 4th. The stock was sold at an average price of $127.39, for a total value of $871,347.60. The disclosure for this sale can be found here. 0.82% of the stock is currently owned by insiders.

Several institutional investors and hedge funds have recently modified their holdings of the company. Janney Montgomery Scott LLC lifted its holdings in shares of Kansas City Southern by 0.7% in the 2nd quarter. Janney Montgomery Scott LLC now owns 12,326 shares of the transportation company’s stock valued at $1,502,000 after purchasing an additional 81 shares during the last quarter. Parallel Advisors LLC lifted its holdings in Kansas City Southern by 18.3% in the second quarter. Parallel Advisors LLC now owns 628 shares of the transportation company’s stock worth $76,000 after acquiring an additional 97 shares during the last quarter. Rehmann Capital Advisory Group lifted its holdings in Kansas City Southern by 81.3% in the second quarter. Rehmann Capital Advisory Group now owns 223 shares of the transportation company’s stock worth $27,000 after acquiring an additional 100 shares during the last quarter. Hancock Whitney Corp lifted its holdings in Kansas City Southern by 2.0% in the second quarter. Hancock Whitney Corp now owns 5,265 shares of the transportation company’s stock worth $641,000 after acquiring an additional 105 shares during the last quarter. Finally, Advisor Partners LLC lifted its holdings in Kansas City Southern by 5.2% in the third quarter. Advisor Partners LLC now owns 2,128 shares of the transportation company’s stock worth $283,000 after acquiring an additional 106 shares during the last quarter. 87.13% of the stock is currently owned by institutional investors and hedge funds.

The company has a debt-to-equity ratio of 0.47, a current ratio of 0.79 and a quick ratio of 0.59. The stock’s fifty day simple moving average is $130.79 and its 200-day simple moving average is $123.02. The stock has a market cap of $13.53 billion, a P/E ratio of 24.57, a PEG ratio of 1.35 and a beta of 0.94.

About Kansas City Southern (NYSE:KSU)

Kansas City Southern, a transportation holding company, provides domestic and international rail transportation services in North America. The company serves a ten-state region in the midwest and southeast regions of the United States and has the shortest north/south rail route between Kansas City, Missouri, and ports along the Gulf of Mexico in Alabama, Louisiana, Mississippi, and Texas.

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