GATX Corporation (GATX) Downgraded by Zacks Investment Research to Hold
Zacks Investment Research cut shares of GATX Corporation (NYSE:GATX) from a buy rating to a hold rating in a research note published on Thursday.
According to Zacks, “Shares of GATX Corporation have outperformed the industry it belongs to, over the last year, on the back of its strong product portfolio. Moreover, the company has an impressive earnings history having outshined the Zacks Consensus Estimate in each of the past four quarters. We are also impressed by GATX Corporation's efforts to reward investors through share buybacks and dividend payments. However, the company's struggles on the top line front bother us. The company’s tepid outlook for 2017 reflects the tough market conditions. It expects 2017 earnings per share in the band of $4.40-$4.60, much below the 2016 figure. Moreover, GATX is a highly leveraged company.”
A number of other equities research analysts have also recently weighed in on GATX. Cowen and Company restated a market perform rating and issued a $63.00 price target (up previously from $62.00) on shares of GATX Corporation in a research note on Sunday, April 23rd. ValuEngine upgraded GATX Corporation from a buy rating to a strong-buy rating in a research note on Saturday, June 3rd. Axiom Securities restated a sell rating on shares of GATX Corporation in a research note on Friday, June 16th. Buckingham Research initiated coverage on GATX Corporation in a research note on Wednesday, June 21st. They issued a neutral rating and a $64.00 price target on the stock. Finally, Stifel Nicolaus upgraded GATX Corporation from a sell rating to a hold rating and increased their price target for the company from $50.00 to $54.00 in a research note on Monday, July 17th. Two research analysts have rated the stock with a sell rating, five have issued a hold rating, two have given a buy rating and one has given a strong buy rating to the stock. GATX Corporation currently has a consensus rating of Hold and an average price target of $56.14.
Shares of GATX Corporation (NYSE GATX) opened at 60.48 on Thursday. The stock has a 50 day moving average of $62.47 and a 200 day moving average of $60.72. GATX Corporation has a 52 week low of $40.66 and a 52 week high of $66.30. The firm has a market cap of $2.34 billion, a P/E ratio of 10.20 and a beta of 1.19.
GATX Corporation (NYSE:GATX) last posted its quarterly earnings results on Thursday, July 20th. The transportation company reported $1.32 earnings per share for the quarter, beating analysts’ consensus estimates of $1.11 by $0.21. GATX Corporation had a return on equity of 17.83% and a net margin of 17.09%. The business had revenue of $348.40 million for the quarter, compared to analysts’ expectations of $352.64 million. During the same quarter in the prior year, the business earned $1.49 EPS. The firm’s revenue for the quarter was down 2.9% on a year-over-year basis. Equities analysts forecast that GATX Corporation will post $4.60 earnings per share for the current year.
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The company also recently disclosed a quarterly dividend, which will be paid on Saturday, September 30th. Shareholders of record on Friday, September 15th will be issued a $0.42 dividend. This represents a $1.68 dividend on an annualized basis and a yield of 2.78%. The ex-dividend date is Thursday, September 14th. GATX Corporation’s dividend payout ratio is 28.38%.
In other GATX Corporation news, EVP Thomas A. Ellman sold 2,239 shares of the company’s stock in a transaction on Wednesday, May 24th. The stock was sold at an average price of $61.52, for a total value of $137,743.28. Following the transaction, the executive vice president now directly owns 30,740 shares of the company’s stock, valued at approximately $1,891,124.80. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Deborah A. Golden sold 2,429 shares of the company’s stock in a transaction on Tuesday, June 13th. The shares were sold at an average price of $65.42, for a total value of $158,905.18. Following the completion of the transaction, the executive vice president now directly owns 39,783 shares in the company, valued at $2,602,603.86. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 9,517 shares of company stock worth $601,618. Insiders own 3.50% of the company’s stock.
Hedge funds and other institutional investors have recently modified their holdings of the stock. Tyers Asset Management LLC raised its stake in GATX Corporation by 10.1% in the first quarter. Tyers Asset Management LLC now owns 1,914 shares of the transportation company’s stock valued at $117,000 after buying an additional 176 shares during the period. Shine Investment Advisory Services Inc. bought a new stake in GATX Corporation during the second quarter valued at about $118,000. IFP Advisors Inc raised its stake in GATX Corporation by 0.4% in the first quarter. IFP Advisors Inc now owns 2,195 shares of the transportation company’s stock valued at $134,000 after buying an additional 9 shares during the period. Flinton Capital Management LLC raised its stake in GATX Corporation by 10.1% in the first quarter. Flinton Capital Management LLC now owns 2,436 shares of the transportation company’s stock valued at $149,000 after buying an additional 224 shares during the period. Finally, Riverhead Capital Management LLC raised its stake in GATX Corporation by 55.4% in the second quarter. Riverhead Capital Management LLC now owns 2,331 shares of the transportation company’s stock valued at $150,000 after buying an additional 831 shares during the period.
About GATX Corporation
GATX Corporation is a global railcar lessor, owning fleets in North America, Europe, and Asia. In addition, the Company operates fleet of the United States-flagged vessels on the Great Lakes and jointly with Rolls-Royce plc, it owns aircraft spare engine lease portfolios in the world. It operates through four business segments: Rail North America, Rail International, American Steamship Company (ASC), and Portfolio Management.
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