Zacks Investment Research upgraded shares of GATX (NYSE:GATX) from a hold rating to a buy rating in a research report report published on Thursday morning. Zacks Investment Research currently has $88.00 price objective on the transportation company’s stock.
According to Zacks, “Shares of GATX have outperformed its industry in a year's time. Ushering in further good news, the company reported better-than-expected earnings per share in the third quarter of 2018. In fact, the company has an impressive earnings history having surpassed estimates in three of the trailing four quarters with an average beat of 26.5%. We are also impressed by the company’s efforts to reward its shareholders through share buybacks and dividend payments. In January, the company raised its quarterly dividend by 5% to 44 cents per share. Efforts to modernize its fleet are also encouraging. However, we are concerned about the company's high debt levels. High operating expenses are concerning as well. In fact, the bottom line dipped 2.4% year over year in the third quarter of 2018 mainly due to high costs.”
A number of other equities analysts have also issued reports on the stock. Mizuho restated a buy rating on shares of GATX in a research report on Friday, August 31st. Buckingham Research raised their target price on shares of GATX from $67.00 to $74.00 and gave the stock a neutral rating in a research report on Friday, July 27th. Stifel Nicolaus set a $78.00 target price on shares of GATX and gave the stock a hold rating in a research report on Thursday, July 19th. Finally, ValuEngine upgraded shares of GATX from a hold rating to a buy rating in a research report on Friday, June 29th. Five investment analysts have rated the stock with a hold rating and three have given a buy rating to the company. The company presently has a consensus rating of Hold and a consensus target price of $79.50.
GATX (NYSE:GATX) last announced its earnings results on Tuesday, October 23rd. The transportation company reported $1.22 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.07 by $0.15. The business had revenue of $349.70 million for the quarter, compared to analyst estimates of $357.00 million. GATX had a net margin of 37.15% and a return on equity of 10.65%. The company’s revenue for the quarter was down 2.8% compared to the same quarter last year. During the same period last year, the firm posted $1.25 earnings per share. Analysts anticipate that GATX will post 5.07 earnings per share for the current year.
In related news, VP James M. Conniff sold 492 shares of GATX stock in a transaction on Wednesday, August 22nd. The shares were sold at an average price of $85.64, for a total value of $42,134.88. Following the transaction, the vice president now directly owns 2,200 shares in the company, valued at approximately $188,408. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, VP William M. Muckian sold 3,930 shares of GATX stock in a transaction on Wednesday, August 8th. The shares were sold at an average price of $84.94, for a total transaction of $333,814.20. Following the completion of the transaction, the vice president now owns 14,560 shares in the company, valued at $1,236,726.40. The disclosure for this sale can be found here. Over the last quarter, insiders sold 43,668 shares of company stock worth $3,708,000. 3.63% of the stock is currently owned by insiders.
Institutional investors have recently added to or reduced their stakes in the business. Dynamic Technology Lab Private Ltd acquired a new stake in GATX in the second quarter valued at $587,000. Synovus Financial Corp lifted its holdings in GATX by 7.2% in the second quarter. Synovus Financial Corp now owns 10,104 shares of the transportation company’s stock valued at $748,000 after acquiring an additional 676 shares during the period. Janus Henderson Group PLC lifted its holdings in GATX by 20.6% in the second quarter. Janus Henderson Group PLC now owns 849,712 shares of the transportation company’s stock valued at $63,074,000 after acquiring an additional 145,019 shares during the period. BlackRock Inc. lifted its holdings in GATX by 1.4% in the second quarter. BlackRock Inc. now owns 4,280,856 shares of the transportation company’s stock valued at $317,768,000 after acquiring an additional 58,854 shares during the period. Finally, Mutual of America Capital Management LLC lifted its holdings in GATX by 3.2% in the second quarter. Mutual of America Capital Management LLC now owns 32,230 shares of the transportation company’s stock valued at $2,392,000 after acquiring an additional 1,008 shares during the period.
GATX Company Profile
GATX Corporation leases, operates, manages, and remarkets assets in the rail and marine markets in North America and internationally. The company operates through four segments: Rail North America, Rail International, American Steamship Company (ASC), and Portfolio Management. The Rail North America segment primarily leases railcars and locomotives.
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