Douglass Winthrop Advisors LLC, an investment firm, has increased its stake in Canadian National Railway (NYSE:CNI) (TSE:CNR) by 3.1% during the first quarter of this year, according to their recent filing with the Securities and Exchange Commission. The company now owns 915,799 shares of Canadian National Railway’s stock, acquiring an additional 27,870 shares during this period. Canadian National Railway makes up 2.8% of Douglass Winthrop Advisors LLC’s investment portfolio, positioning it as their 11th largest holding. As of the most recent filing with the Securities and Exchange Commission in September 2023, Douglass Winthrop Advisors LLC held approximately 0.14% of Canadian National Railway, amounting to a value of $108,037,000.
Moreover, it is worth noting that Canadian National Railway recently announced a quarterly dividend payment that will be made on September 29th. Investors who are recorded as shareholders on September 8th will receive a dividend of $0.5996 per share. This represents an increase from the previous quarterly dividend of $0.58 per share. On an annualized basis, Canadian National Railway’s new dividend amounts to $2.40 per share with a yield of 2.22%. It is important to mention that the ex-dividend date for this payment is on September 7th.
In summary, Douglass Winthrop Advisors LLC has demonstrated confidence in Canadian National Railway by increasing its stake in the company during the first quarter of this year. Additionally, Canadian National Railway’s decision to increase its quarterly dividend reflects positively on its financial health and commitment to providing returns to shareholders. These developments serve as indicators for potential investors interested in evaluating their options within the transportation industry and considering long-term investments aligned with their financial objectives and risk tolerance.
(This article was written based on information available as per September 10, 2023)
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Institutional Investors Increase Holdings in Canadian National Railway (CNR): Analysts Express Mixed Opinions on Stock Performance
[stock_market_widget type=”chart” template=”basic” color=”#3946CE” assets=”SNDR” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” api=”yf”]In recent months, a number of significant shifts have occurred in the positions held by institutional investors within Canadian National Railway (CNR). Wellington Management Group LLP, for example, has increased its holdings in CNR by 0.9% in the first quarter, now owning over 20 million shares valued at $2.4 billion. Vanguard Group Inc. has also followed suit, raising its holdings by 2.8% to approximately 20 million shares worth $2.68 billion.
Caisse DE Depot ET Placement DU Quebec and Jarislowsky Fraser Ltd have similarly increased their stake in CNR during the first quarter, with both institutions acquiring additional shares amounting to millions of dollars’ worth. Additionally, 1832 Asset Management L.P., after purchasing an extra 75,087 shares in the last quarter alone, now owns over 8 million shares valued at $1 billion.
Overall, it is clear that institutional investors and hedge funds currently control a considerable portion — approximately 67.6% — of CNR’s stock.
As this shift among institutional investors continues to shape the market dynamics surrounding Canadian National Railway, various equity research analysts have begun expressing their opinions on the company’s stock performance. Citigroup recently lowered their target price on CNR stock from $125 to $122 while Stifel Nicolaus raised their target price from $115 to $127.
Conversely, Susquehanna and Desjardins decreased their price objectives on CNR stock from $122 to $120 and C$184 to C$181 respectively. Argus also downgraded their rating on CNR from “buy” to “hold.” However, according to Bloomberg.com data collected from these analysts’ reports, there appears to be consensus among research experts on a “Hold” rating for CNR stock with an average price target of approximately $145.
On September 10th, CNR stock was trading at $107.84 per share, with a total of 1,220,411 shares traded. The company’s fifty-day simple moving average stands at $115.82 and its 200-day simple moving average at $117.05. CNR boasts a current ratio of 0.93, suggesting its ability to meet short-term obligations, while its quick ratio of 0.72 indicates its liquidity position.
CNR also maintains a debt-to-equity ratio of 0.78 and has experienced a fluctuating stock performance over the past year, with a low of $103.79 and a high of $129.89. With a market capitalization of $70.79 billion and a price-to-earnings ratio of 18.47, CNR is seen as having significant potential in the transportation industry.
The company’s latest quarterly earnings report, released on July 25th, revealed that CNR fell short of analysts’ consensus estimates with earnings per share (EPS) at $1.31 instead of the projected $1.37 EPS figure. However, Canadian National Railway maintained an impressive net margin of 30.21% and returned a solid equity value of 24.62%. Although CNR’s revenue for the quarter was slightly below expectations at $3.02 billion compared to an estimated $3.13 billion, research analysts anticipate that the company will post earnings per share totaling approximately 5.57 by the end of the fiscal year.
As institutional investors make significant adjustments to their positions within Canadian National Railway, it will be interesting to observe how these changes impact the company’s stock performance and influence further investment decisions in this sector.
