Could Canadian Pacific Railway Limited (USA) See a Reversal After Today’s Strong Options Activity?

 Could Canadian Pacific Railway Limited (USA) See a Reversal After Today's Strong Options Activity?

In today’s session Canadian Pacific Railway Limited (USA) (CP) registered an unusually high (5,018) contracts volume of call trades. Someone, most probably a professional was a very active buyer of the October, 2016 call, expecting serious CP increase. With 5,018 contracts traded and 1724 open interest for the Oct, 16 contract, it seems this is a quite bullish bet. The option with symbol: CP161021C00160000 closed last at: $1.3 or 36.8% up. About 344,732 shares traded hands. Canadian Pacific Railway Limited (USA) (NYSE:CP) has risen 24.30% since March 1, 2016 and is uptrending. It has outperformed by 15.06% the S&P500.

Analysts await Canadian Pacific Railway Limited (USA) (NYSE:CP) to report earnings on October, 18. They expect $2.10 EPS, up 1.94% or $0.04 from last year’s $2.06 per share. CP’s profit will be $308.65 million for 18.08 P/E if the $2.10 EPS becomes a reality. After $1.59 actual EPS reported by Canadian Pacific Railway Limited (USA) for the previous quarter, Wall Street now forecasts 32.08% EPS growth.

Canadian Pacific Railway Limited (USA) (NYSE:CP) Ratings Coverage

Out of 18 analysts covering Canadian Pacific (NYSE:CP), 9 rate it a “Buy”, 1 “Sell”, while 8 “Hold”. This means 50% are positive. $225 is the highest target while $128 is the lowest. The $171.73 average target is 13.08% above today’s ($151.86) stock price. Canadian Pacific has been the topic of 37 analyst reports since September 30, 2015 according to StockzIntelligence Inc. JP Morgan initiated the shares of CP in a report on Monday, April 25 with “Neutral” rating. Morgan Stanley reinitiated the shares of CP in a report on Friday, June 3 with “Overweight” rating. As per Wednesday, October 21, the company rating was maintained by Cowen & Co. The firm has “Overweight” rating given on Thursday, August 11 by Atlantic Securities. The firm has “Hold” rating by Canaccord Genuity given on Wednesday, October 21. RBC Capital Markets maintained the stock with “Sector Perform” rating in Wednesday, October 21 report. Citigroup maintained Canadian Pacific Railway Limited (USA) (NYSE:CP) on Wednesday, March 30 with “Buy” rating. Goldman Sachs upgraded the stock to “Buy” rating in Wednesday, September 30 report. Barclays Capital maintained it with “Overweight” rating and $142 target price in Monday, April 11 report. On Tuesday, October 13 the stock rating was downgraded by Canaccord Genuity to “Hold”.

Canadian Pacific Railway Limited , together with its subsidiaries, operates a transcontinental railway in Canada and the United States. The company has a market cap of $22.32 billion. The Firm operates in rail transportation segment. It has a 20.39 P/E ratio. The Company’s business mix includes bulk commodities, merchandise freight and intermodal traffic over a network of approximately 12,500 miles, serving the principal business centers of Canada from Montreal, Quebec, to Vancouver, British Columbia, and the United States Northeast and Midwest regions.

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