Brokerages Set Kansas City Southern (NYSE:KSU) Target Price at $153.10

Kansas City Southern (NYSE:KSU) has been given a consensus rating of “Hold” by the twenty-three analysts that are covering the stock, Marketbeat Ratings reports. Two analysts have rated the stock with a sell rating, eleven have issued a hold rating, nine have given a buy rating and one has issued a strong buy rating on the company. The average twelve-month price objective among brokers that have issued ratings on the stock in the last year is $154.15.

KSU has been the subject of several research analyst reports. ValuEngine raised Kansas City Southern from a “sell” rating to a “hold” rating in a report on Tuesday, March 3rd. Susquehanna Bancshares decreased their price target on shares of Kansas City Southern from $169.00 to $142.00 and set a “neutral” rating for the company in a research note on Wednesday, April 8th. Wells Fargo & Co dropped their price objective on shares of Kansas City Southern from $174.00 to $170.00 and set an “overweight” rating on the stock in a research note on Friday, May 22nd. Credit Suisse Group upped their target price on shares of Kansas City Southern from $144.00 to $149.00 and gave the company an “outperform” rating in a report on Monday, April 20th. Finally, Morgan Stanley raised their price target on Kansas City Southern from $122.00 to $127.00 and gave the stock an “equal weight” rating in a report on Tuesday, April 21st.

In other news, CMO Michael J. Naatz sold 3,000 shares of Kansas City Southern stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $145.57, for a total transaction of $436,710.00. Following the completion of the sale, the chief marketing officer now directly owns 12,507 shares in the company, valued at $1,820,643.99. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CAO Suzanne M. Grafton sold 300 shares of the business’s stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $147.15, for a total transaction of $44,145.00. Following the completion of the transaction, the chief accounting officer now directly owns 9,633 shares of the company’s stock, valued at approximately $1,417,495.95. The disclosure for this sale can be found here. Company insiders own 0.82% of the company’s stock.

Hedge funds have recently added to or reduced their stakes in the business. Skandinaviska Enskilda Banken AB publ raised its holdings in Kansas City Southern by 247.7% in the 1st quarter. Skandinaviska Enskilda Banken AB publ now owns 79,397 shares of the transportation company’s stock valued at $10,098,000 after acquiring an additional 56,560 shares during the last quarter. Guggenheim Capital LLC grew its position in shares of Kansas City Southern by 31.7% in the first quarter. Guggenheim Capital LLC now owns 54,818 shares of the transportation company’s stock valued at $6,973,000 after purchasing an additional 13,192 shares during the period. Optimal Asset Management Inc. increased its stake in Kansas City Southern by 155.3% in the first quarter. Optimal Asset Management Inc. now owns 11,224 shares of the transportation company’s stock valued at $1,427,000 after purchasing an additional 6,828 shares during the last quarter. State of Tennessee Treasury Department lifted its position in Kansas City Southern by 3.1% during the first quarter. State of Tennessee Treasury Department now owns 431,219 shares of the transportation company’s stock worth $54,842,000 after buying an additional 12,954 shares during the period. Finally, Coldstream Capital Management Inc. acquired a new stake in Kansas City Southern in the 1st quarter worth about $782,000. 91.52% of the stock is owned by hedge funds and other institutional investors.

Shares of KSU stock traded down $1.57 during mid-day trading on Friday, hitting $145.71. 1,517,652 shares of the stock were exchanged, compared to its average volume of 1,148,614. The stock’s fifty day simple moving average is $146.62 and its two-hundred day simple moving average is $148.01. The stock has a market capitalization of $13.99 billion, a price-to-earnings ratio of 24.41, a P/E/G ratio of 1.45 and a beta of 0.92. Kansas City Southern has a 12-month low of $92.86 and a 12-month high of $178.59. The company has a debt-to-equity ratio of 0.68, a quick ratio of 1.02 and a current ratio of 1.32.

Kansas City Southern (NYSE:KSU) last announced its earnings results on Friday, April 17th. The transportation company reported $1.96 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.78 by $0.18. The firm had revenue of $731.70 million during the quarter, compared to analysts’ expectations of $716.19 million. Kansas City Southern had a return on equity of 14.63% and a net margin of 20.11%. The business’s revenue was up 8.4% on a year-over-year basis. During the same period in the prior year, the firm earned $1.54 EPS. On average, research analysts expect that Kansas City Southern will post 6.76 earnings per share for the current fiscal year.

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 8th. Shareholders of record on Monday, June 8th will be issued a $0.40 dividend. This represents a $1.60 annualized dividend and a dividend yield of 1.10%. The ex-dividend date of this dividend is Friday, June 5th. Kansas City Southern’s dividend payout ratio (DPR) is presently 23.19%.

Kansas City Southern Company Profile

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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Analyst Recommendations for Kansas City Southern (NYSE:KSU)

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