What’s in Kansas City Southern After Today’s Bullish Options Activity?

 What's in Kansas City Southern After Today's Bullish Options Activity?

In today’s session Kansas City Southern (KSU) registered an unusually high (1,774) contracts volume of call trades. Someone, most probably a professional was a very active buyer of the November, 2016 call, expecting serious KSU increase. With 1,774 contracts traded and 674 open interest for the Nov, 16 contract, it seems this is a quite bullish bet. The option with symbol: KSU161118C00083000 closed last at: $1.3 or 18.2% up. About 660,381 shares traded hands. Kansas City Southern (NYSE:KSU) has declined 6.01% since April 13, 2016 and is downtrending. It has underperformed by 9.94% the S&P500.

Kansas City Southern (NYSE:KSU) Ratings Coverage

Out of 19 analysts covering Kansas City Southern (NYSE:KSU), 8 rate it a “Buy”, 2 “Sell”, while 9 “Hold”. This means 42% are positive. Kansas City Southern has been the topic of 41 analyst reports since August 20, 2015 according to StockzIntelligence Inc. Atlantic Securities initiated Kansas City Southern (NYSE:KSU) on Thursday, August 11 with “Neutral” rating. Bank of America upgraded the shares of KSU in a report on Wednesday, April 20 to “Buy” rating. Bank of America maintained it with “Neutral” rating and $99 target price in Friday, September 11 report. Barclays Capital maintained Kansas City Southern (NYSE:KSU) on Wednesday, July 20 with “Underweight” rating. The stock of Kansas City Southern (NYSE:KSU) earned “Neutral” rating by Buckingham Research on Friday, April 15. On Monday, October 19 the stock rating was maintained by Cowen & Co with “Market Perform”. The firm earned “Hold” rating on Thursday, August 27 by Stifel Nicolaus. Citigroup maintained Kansas City Southern (NYSE:KSU) rating on Tuesday, April 19. Citigroup has “Buy” rating and $108 price target. The firm has “Outperform” rating by Oppenheimer given on Thursday, June 16. The rating was downgraded by Bank of America to “Neutral” on Wednesday, November 9.

According to Zacks Investment Research, “Kansas City Southern is a transportation holding company with two primary subsidiaries. The Kansas City Southern Railway Company, is one of seven Class I railroads operating in the United States. Kansas City Southern de México, SA. de C.V. is one of three large regional railroads in Mexico. KCS also owns 50% of the Panama Canal Railway Company in Panama. The combined North American rail network comprises approximately 6,000 miles of rail lines that link commercial and industrial markets in the United States and Mexico.”

Insitutional Activity: The institutional sentiment increased to 1 in 2016 Q2. Its up 0.06, from 0.94 in 2016Q1. The ratio improved, as 44 funds sold all Kansas City Southern shares owned while 167 reduced positions. 71 funds bought stakes while 139 increased positions. They now own 95.86 million shares or 7.51% less from 103.64 million shares in 2016Q1.
The California-based Cypress Funds Limited Liability has invested 2.38% in Kansas City Southern (NYSE:KSU). The Connecticut-based Paloma Prns Mgmt Com has invested 0.01% in Kansas City Southern (NYSE:KSU). Moreover, Federated Investors Pa has 0.01% invested in Kansas City Southern (NYSE:KSU) for 32,461 shares. Williams Jones & Associate Limited Liability Company accumulated 0.39% or 94,165 shares. Maverick Ltd holds 525,113 shares or 0.64% of its portfolio. The California-based Pacific Global Investment has invested 0.48% in Kansas City Southern (NYSE:KSU). Davy Asset Management holds 0.22% of its portfolio in Kansas City Southern (NYSE:KSU) for 11,881 shares. Moreover, Airain Limited has 0.34% invested in Kansas City Southern (NYSE:KSU) for 64,373 shares. Hightower Advsrs Ltd Co has invested 0.01% of its portfolio in Kansas City Southern (NYSE:KSU). Capital Fund Sa has 0.03% invested in the company for 39,613 shares. Utah Retirement has 0.05% invested in the company for 19,710 shares. Cambridge Advsr owns 12,316 shares or 0.02% of their US portfolio. Walleye Trading Limited Liability owns 10,615 shares or 0.01% of their US portfolio. Corvex Management L P last reported 0.75% of its portfolio in the stock. Magnetar Financial Ltd Liability owns 11,407 shares or 0.02% of their US portfolio.

Insider Transactions: Since June 9, 2016, the stock had 0 buys, and 5 sales for $4.39 million net activity. On Wednesday, July 20 the insider Starling David L sold $504,312. Wochner William J also sold $2.61 million worth of Kansas City Southern (NYSE:KSU) shares. 3,240 shares were sold by DRUTEN ROBERT J, worth $291,417 on Thursday, June 9. Another trade for 5,000 shares valued at $478,100 was sold by Ottensmeyer Patrick J. $510,842 worth of Kansas City Southern (NYSE:KSU) shares were sold by Upchurch Michael W.

Kansas City Southern is a transportation holding firm with domestic and international rail activities in North America that are focused on the north/south freight corridor connecting commercial and industrial markets in the central United States with industrial cities in Mexico. The company has a market cap of $9.40 billion. The Firm controls and owns The Kansas City Southern Railway Company (KCSR), a United States Class I railroad that serves a 10-state region in the midwest and southeast regions of the United States and has the shortest north/south rail route between Kansas City, Missouri and several key ports along the Gulf of Mexico in Alabama, Louisiana, Mississippi and Texas. It has a 18.69 P/E ratio. The Firm controls and owns Kansas City Southern de Mexico, S.A. de C.V. (KCSM), which serves Mexico’s principal industrial cities and three of its seaports.

KSU Company Profile

Kansas City Southern (KCS), incorporated on January 29, 1962, is a transportation holding firm with domestic and international rail activities in North America that are focused on the north/south freight corridor connecting commercial and industrial markets in the central United States with industrial cities in Mexico. The Firm controls and owns The Kansas City Southern Railway Company (KCSR), a United States Class I railroad that serves a 10-state region in the midwest and southeast regions of the United States and has the shortest north/south rail route between Kansas City, Missouri and several key ports along the Gulf of Mexico in Alabama, Louisiana, Mississippi and Texas. The Firm controls and owns Kansas City Southern de Mexico, S.A. de C.V. (KCSM), which serves Mexico’s principal industrial cities and three of its seaports. KCSM has the right to control and operate the southern half of the rail bridge at Laredo, Texas, which spans the Rio Grande River between the United States and Mexico. The Firm also controls the northern half of this bridge through its ownership of Mexrail, Inc. (Mexrail). The Company, through Mexrail, owns The Texas Mexican Railway Company (Tex-Mex), which connects the activities of KCSR with KCSM.

More notable recent Kansas City Southern (NYSE:KSU) news were published by: Seekingalpha.com which released: “Kansas City Southern – Should Investors Expose Themselves To Mexico Risk?” on November 13, 2016, also Bizjournals.com with their article: “Trump’s railing against NAFTA gives Kansas City Southern stock a jolt” published on November 09, 2016, Wsj.com published: “Kansas City Southern Earnings Slip as Commodities Slide” on October 18, 2016. More interesting news about Kansas City Southern (NYSE:KSU) were released by: Prnewswire.com and their article: “Research Reports Coverage on Railroads Stocks — Kansas City Southern …” published on November 15, 2016 as well as Seekingalpha.com‘s news article titled: “Sell Kansas City Southern” with publication date: November 07, 2016.

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