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 presently have a $99.00 price target on the transportation company’s stock. Zacks Investment Research‘s price objective indicates 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.”

Several other analysts have also issued reports on the company. Goldman Sachs Group started coverage on Canadian National Railway in a research note on Wednesday, July 10th. They issued a “neutral” rating and a $97.00 price objective on the stock. Royal Bank of Canada set a $137.00 price objective on Canadian National Railway and gave the company a “hold” rating in a research note on Friday, September 13th. Stephens downgraded Canadian National Railway from an “overweight” rating to an “equal” rating and decreased their target price for the company from $100.00 to $97.00 in a research report on Tuesday, October 1st. BMO Capital Markets raised Canadian National Railway from a “market perform” rating to an “outperform” rating in a research report on Friday, November 1st. 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 assigned a buy rating to the stock. The stock currently has an average rating of “Hold” and an average price target of $102.59.

NYSE:CNI traded down $0.17 on Thursday, hitting $94.64. The company’s stock had a trading volume of 799,491 shares, compared to its average volume of 879,536. The company has a current ratio of 0.71, a quick ratio of 0.57 and a debt-to-equity ratio of 0.65. The stock has a fifty day moving average of $88.64 and a two-hundred day moving average of $91.55. The firm has a market capitalization of $68.03 billion, a P/E ratio of 22.75, a price-to-earnings-growth ratio of 2.06 and a beta of 1.01. Canadian National Railway has a one year low of $70.36 and a one year high of $96.49.

Canadian National Railway (NYSE:CNI) (TSE:CNR) last released its quarterly earnings data on Tuesday, October 22nd. The transportation company reported $1.66 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.27 by $0.39. The firm had revenue of $3.81 billion for the quarter, compared to analyst estimates of $3.87 billion. Canadian National Railway had a return on equity of 24.36% and a net margin of 29.62%. The business’s revenue for the quarter was up 3.3% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.50 earnings per share. As a group, sell-side analysts anticipate that Canadian National Railway will post 4.56 EPS for the current year.

Large investors have recently modified their holdings of the stock. Prime Capital Investment Advisors LLC acquired a new stake in Canadian National Railway during the second quarter worth approximately $34,000. Moneta Group Investment Advisors LLC grew its position in 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 buying an additional 5,064 shares in the last quarter. CWM LLC grew its position in 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 buying an additional 214 shares in the last quarter. Griffin Asset Management Inc. acquired a new stake in Canadian National Railway during the second quarter worth approximately $46,000. Finally, Patriot Financial Group Insurance Agency LLC grew its position in 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 buying an additional 178 shares in the last quarter. 53.26% of the stock is currently owned by institutional investors and hedge funds.

About Canadian National Railway

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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