CAI International (CAI) Trading Up 21.6% on Better-Than-Expected Earnings

CAI International Inc (NYSE:CAI)’s share price was up 21.6% on Wednesday following a stronger than expected earnings report. The company traded as high as $25.58 and last traded at $24.91. Approximately 592,224 shares changed hands during trading, an increase of 151% from the average daily volume of 235,498 shares. The stock had previously closed at $20.48.

The transportation company reported $1.03 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.97 by $0.06. CAI International had a return on equity of 13.16% and a net margin of 23.77%. The business had revenue of $115.40 million for the quarter, compared to analysts’ expectations of $112.40 million. During the same quarter in the previous year, the firm earned $0.90 earnings per share. The business’s revenue was up 27.9% on a year-over-year basis.

CAI International declared that its board has authorized a stock buyback program on Monday, October 8th that allows the company to repurchase 3,000,000 outstanding shares. This repurchase authorization allows the transportation company to buy shares of its stock through open market purchases. Shares repurchase programs are typically an indication that the company’s management believes its shares are undervalued.



Several research analysts have weighed in on CAI shares. Zacks Investment Research cut CAI International from a “buy” rating to a “hold” rating in a research report on Tuesday, July 3rd. ValuEngine cut CAI International from a “sell” rating to a “strong sell” rating in a research report on Monday, July 16th. Keefe, Bruyette & Woods raised CAI International from a “market perform” rating to an “outperform” rating in a research report on Thursday, September 6th. Finally, Wells Fargo & Co cut CAI International from an “outperform” rating to a “market perform” rating and set a $22.00 price target on the stock. in a research report on Friday, September 28th. One research analyst has rated the stock with a sell rating, two have assigned a hold rating and four have assigned a buy rating to the company. CAI International presently has a consensus rating of “Hold” and a consensus price target of $28.75.

Several hedge funds and other institutional investors have recently modified their holdings of the company. Dimensional Fund Advisors LP lifted its position in shares of CAI International by 5.7% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,729,498 shares of the transportation company’s stock valued at $36,769,000 after buying an additional 92,852 shares during the last quarter. BlackRock Inc. lifted its position in shares of CAI International by 11.0% during the 2nd quarter. BlackRock Inc. now owns 1,177,477 shares of the transportation company’s stock valued at $27,365,000 after buying an additional 116,607 shares during the last quarter. Scopus Asset Management L.P. purchased a new position in shares of CAI International during the 2nd quarter valued at $14,447,000. Royce & Associates LP lifted its position in shares of CAI International by 10.7% during the 2nd quarter. Royce & Associates LP now owns 563,408 shares of the transportation company’s stock valued at $13,094,000 after buying an additional 54,601 shares during the last quarter. Finally, Aristotle Capital Boston LLC lifted its position in shares of CAI International by 1.3% during the 2nd quarter. Aristotle Capital Boston LLC now owns 424,181 shares of the transportation company’s stock valued at $9,858,000 after buying an additional 5,547 shares during the last quarter. 87.73% of the stock is currently owned by hedge funds and other institutional investors.

The company has a debt-to-equity ratio of 2.93, a current ratio of 0.48 and a quick ratio of 0.48. The stock has a market cap of $389.41 million, a P/E ratio of 8.68, a price-to-earnings-growth ratio of 0.67 and a beta of 2.56.

About CAI International (NYSE:CAI)

CAI International, Inc operates as transportation finance and logistics company in the United States and internationally. The company operates through three segments: Container Leasing, Rail Leasing, and Logistics. It leases, re-leases, and disposes equipment; and contracts for the repair, repositioning, and storage of equipment.

Featured Article: Penny Stocks

Receive News & Ratings for CAI International Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for CAI International and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply