On August 20, 2023, it was reported that Hemenway Trust Co LLC has decreased its holdings in Canadian National Railway (NYSE:CNI) (TSE:CNR) by 0.8% during the first quarter of the year. According to their recent 13F filing with the SEC, the institutional investor now owns 286,609 shares of the transportation company’s stock, after selling 2,308 shares during this period. Canadian National Railway makes up approximately 3.6% of Hemenway Trust Co LLC’s portfolio, making it their seventh largest holding. The total value of Hemenway Trust Co LLC’s holdings in Canadian National Railway at the end of the most recent quarter amounted to $33,811,000.
In addition to this development, Canadian National Railway recently announced their quarterly dividend schedule. Shareholders who are on record as of Friday, September 8th will receive a dividend payment of $0.5996 per share on Friday, September 29th. This represents an annualized dividend of $2.40 and a yield of about 2.11%. It is worth noting that this is a positive change from their previous quarterly dividend which stood at $0.58 per share. The ex-dividend date for this upcoming payment has been set for Thursday, September 7th.
This information regarding Hemenway Trust Co LLC’s reduction in holdings and Canadian National Railway’s dividend update highlights important developments within the transportation industry in recent months. Investors and stakeholders may find this news relevant in evaluating investment opportunities and understanding the financial performance and strategies employed by both companies.
Canadian National Railway is one of North America’s leading transportation companies with an extensive network spanning across Canada and into mid-America connecting three coasts: the Atlantic, Pacific, and Gulf of Mexico. The company operates a diversified portfolio including railways, intermodal terminals, trucking facilities, warehousing operations, and more. As a key player within the transportation sector, Canadian National Railway plays a crucial role in facilitating trade and commerce across North America.
Canadian National Railway Attracts Institutional Investors and Maintains Strong Financials
Canadian National Railway (CNI) has recently caught the attention of various institutional investors, prompting modifications in their holdings of the transportation company’s stock. Vanguard Group Inc., for instance, increased its position in Canadian National Railway by 2.8% during the first quarter, resulting in the ownership of 20,007,681 shares worth a staggering $2,683,831,000. Similarly, Caisse DE Depot ET Placement DU Quebec saw a growth of 5.3% in its position during the same quarter, acquiring an additional 625,000 shares valued at $1,655,948,000. Norges Bank entered the scene as well by buying a new stake in Canadian National Railway for an impressive amount of $727,713,000 during the fourth quarter. Fiera Capital Corp and Morgan Stanley didn’t hold back either and increased their positions by 0.8% and 16.9%, respectively.
These moves made by institutional investors and hedge funds now mean that they collectively own 64.89% of the company’s stock—an astonishing figure that indicates considerable interest and confidence in Canadian National Railway’s prospects.
Furthermore, research reports on CNI have also surfaced lately from prominent companies such as Barclays and Argus. Barclays lowered their price target on August 20th from $122 to $119 while Argus shifted their rating from “buy” to “hold” on August 1st. Additionally, CIBC reduced their price target from C$177 to C$175 on July 26th after Wells Fargo & Company had upped theirs from $115 to $125 back in April.
With one sell rating, ten hold ratings, and four buy ratings from analysts so far—according to data from Bloomberg—Canadian National Railway has been given an average rating of “Hold” with an average price target expected at $145.71.
On Friday trading sessions alone—the reference date being August 20th—CNI stock slightly increased by $0.39, reaching a total of $113.61. Comparatively, 645,849 shares were exchanged that day against an average volume of 1,202,883 shares. It’s also important to note that in the past twelve months, the stock has seen a low of $103.79 and a high of $129.89.
The financials for Canadian National Railway’s most recent quarter are also worth mentioning as it reported earnings data on July 25th, 2023. The company revealed an EPS (earnings-per-share) of $1.31 for the quarter, falling short of the consensus estimate by ($0.06). Additionally, the company generated revenue of $3.02 billion compared to analysts’ expectations of $3.13 billion.
Despite these figures not entirely meeting predictions, Canadian National Railway has proven to be a top contender in its industry with an impressive return on equity of 24.62% and a net margin of 30.21%. Looking ahead, research analysts forecast that the company will post an EPS of 5.62 for the current year.
Therefore, while there have been some adjustments to price targets and ratings in recent research reports concerning CNI stock, Canadian National Railway continues to captivate institutional investors and remains a prominent player in the transportation sector with strong financial fundamentals.