Citigroup Cuts Kansas City Southern (KSU) Price Target to $120.00

Kansas City Southern (NYSE:KSU) had its price target dropped by Citigroup from $123.00 to $120.00 in a report issued on Friday, November 2nd. The firm currently has a “buy” rating on the transportation company’s stock. Citigroup’s target price would indicate a potential upside of 17.16% from the company’s previous close.

Other research analysts have also recently issued reports about the company. Morgan Stanley increased their price target on Kansas City Southern from $106.00 to $108.00 and gave the company a “$111.08” rating in a research report on Monday, July 23rd. Credit Suisse Group increased their price target on Kansas City Southern from $125.00 to $126.00 and gave the company a “$111.08” rating in a research report on Monday, July 23rd. Loop Capital increased their price target on Kansas City Southern to $132.00 and gave the company a “buy” rating in a research report on Monday, July 23rd. Bank of America cut their price objective on Kansas City Southern from $134.00 to $130.00 and set a “buy” rating for the company in a research report on Monday, October 1st. Finally, Deutsche Bank raised Kansas City Southern from a “hold” rating to a “buy” rating and set a $120.00 price objective for the company in a research report on Monday, October 15th. Three research analysts have rated the stock with a hold rating, eight have assigned a buy rating and one has assigned a strong buy rating to the stock. Kansas City Southern presently has an average rating of “Buy” and a consensus target price of $125.17.

Shares of KSU stock traded down $1.64 on Friday, hitting $102.42. 1,455,649 shares of the stock were exchanged, compared to its average volume of 1,463,877. Kansas City Southern has a fifty-two week low of $97.46 and a fifty-two week high of $120.34. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.32 and a quick ratio of 0.99. The stock has a market capitalization of $10.54 billion, a P/E ratio of 19.51, a P/E/G ratio of 1.32 and a beta of 0.82.

Kansas City Southern (NYSE:KSU) last issued its quarterly earnings results on Friday, October 19th. The transportation company reported $1.57 EPS for the quarter, meeting the consensus estimate of $1.57. Kansas City Southern had a return on equity of 11.98% and a net margin of 37.98%. The firm had revenue of $699.00 million during the quarter, compared to analysts’ expectations of $708.19 million. During the same period in the prior year, the firm posted $1.35 earnings per share. The business’s quarterly revenue was up 6.5% compared to the same quarter last year. Equities analysts expect that Kansas City Southern will post 6.02 EPS for the current year.

In other news, VP Suzanne M. Grafton sold 729 shares of the stock in a transaction that occurred on Wednesday, August 29th. The stock was sold at an average price of $119.78, for a total transaction of $87,319.62. Following the transaction, the vice president now owns 10,580 shares in the company, valued at $1,267,272.40. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Henry J. Maier acquired 1,000 shares of the stock in a transaction on Friday, October 26th. The shares were bought at an average price of $102.68 per share, for a total transaction of $102,680.00. Following the purchase, the director now owns 7,122 shares in the company, valued at $731,286.96. The disclosure for this purchase can be found here. 0.70% of the stock is currently owned by company insiders.

A number of institutional investors have recently bought and sold shares of the business. Massachusetts Financial Services Co. MA increased its stake in Kansas City Southern by 5.9% during the 2nd quarter. Massachusetts Financial Services Co. MA now owns 9,864,888 shares of the transportation company’s stock worth $1,045,284,000 after acquiring an additional 545,885 shares during the period. BlackRock Inc. increased its stake in Kansas City Southern by 0.6% during the 3rd quarter. BlackRock Inc. now owns 6,879,928 shares of the transportation company’s stock worth $779,358,000 after acquiring an additional 40,533 shares during the period. Wells Fargo & Company MN increased its stake in shares of Kansas City Southern by 0.6% in the 3rd quarter. Wells Fargo & Company MN now owns 2,671,229 shares of the transportation company’s stock valued at $302,597,000 after purchasing an additional 16,639 shares during the last quarter. Allianz Asset Management GmbH increased its stake in shares of Kansas City Southern by 6.8% in the 1st quarter. Allianz Asset Management GmbH now owns 2,134,853 shares of the transportation company’s stock valued at $234,514,000 after purchasing an additional 136,750 shares during the last quarter. Finally, Northern Trust Corp increased its stake in shares of Kansas City Southern by 1.9% in the 2nd quarter. Northern Trust Corp now owns 1,207,585 shares of the transportation company’s stock valued at $127,955,000 after purchasing an additional 22,528 shares during the last quarter. Hedge funds and other institutional investors own 87.83% of the company’s stock.

About Kansas City Southern

Kansas City Southern, through its subsidiaries, provides domestic and international rail transportation services in North America. It 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.

Further Reading: Understanding Market Liquidity

Analyst Recommendations for Kansas City Southern (NYSE:KSU)

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