GATX Corporation (GATX) Upgraded to “Buy” at Zacks Investment Research
Zacks Investment Research upgraded shares of GATX Corporation (NYSE:GATX) from a hold rating to a buy rating in a research note released on Thursday. The firm currently has $69.00 price target on the transportation company’s stock.
According to Zacks, “Shares of GATX Corporation have outperformed the industry it belongs to, over a 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. The company has been paying regular dividends continuously since 1919. In Jan 2017, the company raised its quarterly dividend by 5% to $0.42. However, the company's struggles on the top line front bother us. Moreover, GATX is a highly leveraged company. “
Several other research firms have also weighed in on GATX. Axiom Securities reaffirmed a sell rating on shares of GATX Corporation in a report on Friday, June 16th. Buckingham Research began coverage on shares of GATX Corporation in a report on Wednesday, June 21st. They set a neutral rating and a $64.00 price objective for the company. ValuEngine raised shares of GATX Corporation from a buy rating to a strong-buy rating in a report on Saturday, June 3rd. Citigroup Inc. dropped their price objective on shares of GATX Corporation from $73.00 to $71.00 and set a buy rating for the company in a report on Friday, July 21st. Finally, Stifel Nicolaus raised shares of GATX Corporation from a sell rating to a hold rating and raised their price objective for the stock from $50.00 to $54.00 in a report on Monday, July 17th. Two analysts have rated the stock with a sell rating, four have issued a hold rating, three have given a buy rating and one has issued a strong buy rating to the company’s stock. The company currently has an average rating of Hold and an average target price of $56.14.
GATX Corporation (NYSE:GATX) traded up 1.28% during mid-day trading on Thursday, reaching $61.03. The company had a trading volume of 62,579 shares. The stock has a 50 day moving average of $62.11 and a 200 day moving average of $60.80. The stock has a market capitalization of $2.36 billion, a price-to-earnings ratio of 10.29 and a beta of 1.19. GATX Corporation has a 52 week low of $40.66 and a 52 week high of $66.30.
GATX Corporation (NYSE:GATX) last posted its quarterly earnings data on Thursday, July 20th. The transportation company reported $1.32 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $1.11 by $0.21. The company had revenue of $348.40 million during the quarter, compared to analyst estimates of $352.64 million. GATX Corporation had a net margin of 17.09% and a return on equity of 17.83%. The company’s revenue was down 2.9% on a year-over-year basis. During the same quarter last year, the business posted $1.49 earnings per share. Analysts anticipate that GATX Corporation will post $4.60 earnings per share for the current year.
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The business also recently declared a quarterly dividend, which will be paid on Saturday, September 30th. Stockholders of record on Friday, September 15th will be paid a dividend of $0.42 per share. The ex-dividend date of this dividend is Thursday, September 14th. This represents a $1.68 annualized dividend and a dividend yield of 2.79%. GATX Corporation’s dividend payout ratio (DPR) is currently 28.38%.
In other news, EVP Deborah A. Golden sold 2,429 shares of the stock in a transaction that occurred on Tuesday, June 13th. The shares were sold at an average price of $65.42, for a total transaction of $158,905.18. Following the sale, the executive vice president now directly owns 39,783 shares of the company’s stock, valued at $2,602,603.86. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Paul F. Titterton sold 2,843 shares of the stock in a transaction that occurred on Monday, June 5th. The shares were sold at an average price of $61.68, for a total transaction of $175,356.24. Following the sale, the senior vice president now directly owns 12,261 shares in the company, valued at $756,258.48. The disclosure for this sale can be found here. Insiders have sold 7,278 shares of company stock worth $463,874 over the last three months. 3.50% of the stock is owned by insiders.
Hedge funds have recently added to or reduced their stakes in the stock. Dynamic Technology Lab Private Ltd bought a new stake in GATX Corporation during the second quarter valued at approximately $272,000. Public Employees Retirement System of Ohio boosted its stake in GATX Corporation by 0.5% in the second quarter. Public Employees Retirement System of Ohio now owns 19,651 shares of the transportation company’s stock valued at $1,263,000 after buying an additional 107 shares during the period. Raymond James Financial Services Advisors Inc. bought a new stake in GATX Corporation during the second quarter valued at approximately $249,000. BlueCrest Capital Management Ltd bought a new stake in GATX Corporation during the second quarter valued at approximately $244,000. Finally, State Street Corp boosted its stake in GATX Corporation by 4.5% in the second quarter. State Street Corp now owns 1,392,167 shares of the transportation company’s stock valued at $89,470,000 after buying an additional 59,729 shares during the period.
GATX Corporation Company Profile
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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