Traders Buy Large Volume of Put Options on Canadian National Railway (CNI)

Canadian National Railway (NYSE:CNI) (TSE:CNR) saw unusually large options trading on Wednesday. Traders acquired 1,058 put options on the stock. This is an increase of 1,789% compared to the average daily volume of 56 put options.

Shares of Canadian National Railway (NYSE:CNI) opened at $80.96 on Friday. Canadian National Railway has a twelve month low of $68.27 and a twelve month high of $85.73. The stock has a market capitalization of $60,400.00, a PE ratio of 19.84, a P/E/G ratio of 2.11 and a beta of 1.09. The company has a current ratio of 0.61, a quick ratio of 0.49 and a debt-to-equity ratio of 0.58.

Canadian National Railway announced that its board has initiated a stock repurchase program on Tuesday, October 24th that authorizes the company to buyback 31,000,000 outstanding shares. This buyback authorization authorizes the transportation company to buy shares of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s board believes its stock is undervalued.

The business also recently announced a quarterly dividend, which was paid on Friday, December 29th. Investors of record on Friday, December 8th were issued a dividend of $0.3304 per share. This represents a $1.32 annualized dividend and a yield of 1.63%. The ex-dividend date was Thursday, December 7th. This is a positive change from Canadian National Railway’s previous quarterly dividend of $0.33. Canadian National Railway’s dividend payout ratio is presently 32.11%.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in CNI. Schroder Investment Management Group raised its holdings in Canadian National Railway by 7,529.7% during the second quarter. Schroder Investment Management Group now owns 76,297 shares of the transportation company’s stock worth $8,046,000 after acquiring an additional 75,297 shares in the last quarter. Wells Fargo & Company MN raised its stake in Canadian National Railway by 1.5% in the second quarter. Wells Fargo & Company MN now owns 754,971 shares of the transportation company’s stock valued at $61,190,000 after buying an additional 11,370 shares during the period. Financial Counselors Inc. raised its stake in Canadian National Railway by 0.9% in the second quarter. Financial Counselors Inc. now owns 5,719 shares of the transportation company’s stock valued at $464,000 after buying an additional 53 shares during the period. Stephens Inc. AR raised its stake in Canadian National Railway by 46.4% in the second quarter. Stephens Inc. AR now owns 4,958 shares of the transportation company’s stock valued at $402,000 after buying an additional 1,571 shares during the period. Finally, Fiera Capital Corp raised its stake in Canadian National Railway by 3.6% in the second quarter. Fiera Capital Corp now owns 3,751,903 shares of the transportation company’s stock valued at $303,508,000 after buying an additional 130,634 shares during the period. Institutional investors and hedge funds own 53.73% of the company’s stock.

CNI has been the subject of several recent research reports. Cowen reaffirmed a “buy” rating and set a $83.00 price objective on shares of Canadian National Railway in a research report on Sunday, September 24th. Zacks Investment Research cut Canadian National Railway from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, September 26th. Stifel Nicolaus reaffirmed a “hold” rating and set a $89.00 price objective on shares of Canadian National Railway in a research report on Friday, October 6th. Royal Bank of Canada reiterated an “outperform” rating on shares of Canadian National Railway in a report on Wednesday, October 25th. Finally, Desjardins upgraded Canadian National Railway from a “hold” rating to a “buy” rating in a report on Wednesday, October 25th. One research analyst has rated the stock with a sell rating, nine have assigned a hold rating and eight have issued a buy rating to the company. Canadian National Railway has an average rating of “Hold” and a consensus target price of $79.67.

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About Canadian National Railway

Canadian National Railway Company is engaged in the rail and related transportation business. The Company’s network of approximately 20,000 route miles of track spans Canada and mid-America, connecting approximately three coasts, including the Atlantic, the Pacific and the Gulf of Mexico and serving the cities and ports of Vancouver, Prince Rupert (British Columbia), Montreal, Halifax, New Orleans, and Mobile (Alabama), and the metropolitan areas of Toronto, Edmonton, Winnipeg, Calgary, Chicago, Memphis, Detroit, Duluth (Minnesota)/Superior (Wisconsin), and Jackson (Mississippi), with connections to all points in North America.

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