Trinity Industries (NYSE:TRN) Hits New 52-Week High – Should You Buy?

Shares of Trinity Industries, Inc. (NYSE:TRN) hit a new 52-week high on Tuesday . The stock traded as high as $39.02 and last traded at $39.01, with a volume of 38570 shares changing hands. The stock had previously closed at $38.18.

Analyst Ratings Changes

Several research firms have commented on TRN. StockNews.com lowered Trinity Industries from a “buy” rating to a “hold” rating in a research report on Monday, November 4th. Susquehanna downgraded shares of Trinity Industries from a “positive” rating to a “neutral” rating and increased their price target for the stock from $34.00 to $35.00 in a report on Monday, October 21st. Finally, The Goldman Sachs Group started coverage on shares of Trinity Industries in a report on Monday, November 18th. They issued a “neutral” rating and a $39.00 price objective for the company.

Trinity Industries Stock Performance

The stock has a market cap of $3.16 billion, a price-to-earnings ratio of 18.74 and a beta of 1.40. The firm’s 50-day moving average is $36.78 and its two-hundred day moving average is $34.45. The company has a current ratio of 2.00, a quick ratio of 1.08 and a debt-to-equity ratio of 4.39.

Trinity Industries (NYSE:TRN) last announced its earnings results on Thursday, October 31st. The transportation company reported $0.43 EPS for the quarter, beating analysts’ consensus estimates of $0.38 by $0.05. The business had revenue of $798.80 million during the quarter, compared to analysts’ expectations of $696.00 million. Trinity Industries had a return on equity of 14.57% and a net margin of 5.31%. The business’s revenue was down 2.7% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.26 earnings per share. As a group, sell-side analysts expect that Trinity Industries, Inc. will post 1.75 earnings per share for the current year.

Trinity Industries Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, January 31st. Investors of record on Wednesday, January 15th will be paid a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a yield of 3.12%. The ex-dividend date is Wednesday, January 15th. This is a boost from Trinity Industries’s previous quarterly dividend of $0.28. Trinity Industries’s dividend payout ratio is currently 58.54%.

Hedge Funds Weigh In On Trinity Industries

A number of institutional investors have recently added to or reduced their stakes in the stock. State Street Corp lifted its holdings in Trinity Industries by 2.3% in the third quarter. State Street Corp now owns 3,226,026 shares of the transportation company’s stock valued at $112,395,000 after acquiring an additional 73,183 shares during the last quarter. Geode Capital Management LLC raised its position in Trinity Industries by 1.4% in the third quarter. Geode Capital Management LLC now owns 1,848,591 shares of the transportation company’s stock valued at $64,418,000 after purchasing an additional 24,832 shares during the period. Encompass Capital Advisors LLC acquired a new position in shares of Trinity Industries in the 2nd quarter valued at $40,527,000. Millennium Management LLC grew its holdings in shares of Trinity Industries by 180.7% during the 2nd quarter. Millennium Management LLC now owns 823,040 shares of the transportation company’s stock worth $24,625,000 after purchasing an additional 529,857 shares during the period. Finally, Royce & Associates LP increased its position in shares of Trinity Industries by 8.2% during the 3rd quarter. Royce & Associates LP now owns 367,421 shares of the transportation company’s stock worth $12,801,000 after purchasing an additional 27,870 shares during the last quarter. Hedge funds and other institutional investors own 86.57% of the company’s stock.

About Trinity Industries

Trinity Industries, Inc provides rail transportation products and services under the TrinityRail name in North America. It operates in two segments, Railcar Leasing and Management Services Group, and Rail Products Group. The Railcar Leasing and Management Services Group segment leases freight and tank railcars; originates and manages railcar leases for third-party investors; and provides fleet maintenance and management services.