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

Canadian National Railway (NYSE:CNI) (TSE:CNR) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Thursday, Zacks.com reports. They currently have a $99.00 price target on the transportation company’s stock. Zacks Investment Research‘s price target would suggest a potential upside of 4.61% from the stock’s previous close.

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 research reports. BMO Capital Markets upgraded Canadian National Railway from a “market perform” rating to an “outperform” rating in a research report on Friday, November 1st. Raymond James downgraded Canadian National Railway from an “outperform” rating to a “hold” rating in a research report on Friday, September 13th. CIBC restated a “hold” rating and set a $119.00 target price on shares of Canadian National Railway in a research report on Wednesday, October 23rd. Goldman Sachs Group started coverage on Canadian National Railway in a research report on Wednesday, July 10th. They set a “neutral” rating and a $97.00 target price for the company. Finally, ValuEngine downgraded Canadian National Railway from a “buy” rating to a “hold” rating in a research report on Thursday, August 1st. One equities research analyst has rated the stock with a sell rating, twelve have assigned a hold rating and five have given a buy rating to the company’s stock. Canadian National Railway currently has a consensus rating of “Hold” and an average target price of $102.59.

Shares of NYSE:CNI traded down $0.17 during trading on Thursday, hitting $94.64. 799,491 shares of the stock were exchanged, compared to its average volume of 879,536. Canadian National Railway has a 1-year low of $70.36 and a 1-year high of $96.49. The company has a market capitalization of $68.03 billion, a price-to-earnings ratio of 22.75, a price-to-earnings-growth ratio of 2.06 and a beta of 1.01. The company’s fifty day simple moving average is $88.64 and its 200-day simple moving average is $91.55. The company has a debt-to-equity ratio of 0.65, a quick ratio of 0.57 and a current ratio of 0.71.

Canadian National Railway (NYSE:CNI) (TSE:CNR) last posted its earnings results on Tuesday, October 22nd. The transportation company reported $1.66 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.27 by $0.39. The business 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%. Canadian National Railway’s revenue was up 3.3% on a year-over-year basis. During the same quarter last year, the company earned $1.50 EPS. On average, research analysts forecast that Canadian National Railway will post 4.56 earnings per share for the current fiscal year.

A number of institutional investors and hedge funds have recently modified their holdings of the business. Prime Capital Investment Advisors LLC bought a new stake in shares of Canadian National Railway during the second quarter worth $34,000. Moneta Group Investment Advisors LLC raised its position in shares of Canadian National Railway by 1,676.8% during the second quarter. Moneta Group Investment Advisors LLC now owns 5,366 shares of the transportation company’s stock worth $37,000 after acquiring an additional 5,064 shares during the last quarter. CWM LLC raised its position in shares of Canadian National Railway by 96.0% during the second quarter. CWM LLC now owns 437 shares of the transportation company’s stock worth $40,000 after acquiring an additional 214 shares during the last quarter. Griffin Asset Management Inc. bought a new stake in shares of Canadian National Railway during the second quarter worth $46,000. Finally, Patriot Financial Group Insurance Agency LLC raised its position in shares of Canadian National Railway by 45.2% during the third quarter. Patriot Financial Group Insurance Agency LLC now owns 572 shares of the transportation company’s stock worth $51,000 after acquiring an additional 178 shares during the last quarter. Hedge funds and other institutional investors 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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