Zacks Investment Research upgraded shares of GATX Corporation (NYSE:GATX) from a hold rating to a buy rating in a research note issued to investors on Friday. They currently have $66.00 price objective on the transportation company’s stock.
According to Zacks, “Shares of GATX Corporation have outperformed the industry it belongs to, in 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 with an average beat of 32.8%. 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%. Additionally, the improvement in profits at the Rail International segment is encouraging. 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 issued reports on GATX. Axiom Securities reiterated a sell rating on shares of GATX Corporation in a report on Friday, June 16th. Buckingham Research assumed coverage on shares of GATX Corporation in a report on Wednesday, June 21st. They set a neutral rating and a $64.00 target price for the company. ValuEngine upgraded shares of GATX Corporation from a buy rating to a strong-buy rating in a report on Saturday, June 3rd. Citigroup Inc. lowered their target price 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 upgraded shares of GATX Corporation from a sell rating to a hold rating and lifted their target price for the company from $50.00 to $54.00 in a report on Monday, July 17th. Three research analysts have rated the stock with a sell rating, four have issued a hold rating, three have given a buy rating and one has given a strong buy rating to the stock. The stock currently has an average rating of Hold and a consensus target price of $55.71.
Shares of GATX Corporation (GATX) opened at 59.16 on Friday. The company has a market capitalization of $2.29 billion, a price-to-earnings ratio of 9.97 and a beta of 1.20. The firm’s 50-day moving average price is $60.97 and its 200-day moving average price is $60.97. GATX Corporation has a one year low of $40.92 and a one year high of $66.30.
GATX Corporation (NYSE:GATX) last released its earnings results on Thursday, July 20th. The transportation company reported $1.32 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.11 by $0.21. GATX Corporation had a net margin of 17.09% and a return on equity of 17.83%. The firm had revenue of $348.40 million during the quarter, compared to analyst estimates of $352.64 million. During the same period last year, the business earned $1.49 earnings per share. The business’s revenue was down 2.9% on a year-over-year basis. Analysts anticipate that GATX Corporation will post $4.60 earnings per share for the current year.
The company also recently declared a quarterly dividend, which will be paid on Saturday, September 30th. Investors of record on Friday, September 15th will be given a dividend of $0.42 per share. This represents a $1.68 annualized dividend and a dividend yield of 2.84%. The ex-dividend date of this dividend is Thursday, September 14th. GATX Corporation’s dividend payout ratio (DPR) is currently 28.38%.
In related news, VP Jeffery R. Young sold 2,910 shares of the firm’s stock in a transaction that occurred on Wednesday, September 13th. The shares were sold at an average price of $58.70, for a total transaction of $170,817.00. Following the completion of the sale, the vice president now owns 6,881 shares of the company’s stock, valued at $403,914.70. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 3.50% of the stock is owned by company insiders.
Institutional investors and hedge funds have recently made changes to their positions in the stock. Shine Investment Advisory Services Inc. bought a new stake in shares of GATX Corporation during the second quarter valued at approximately $118,000. IFP Advisors Inc grew its position in GATX Corporation by 2.9% in the 2nd quarter. IFP Advisors Inc now owns 2,259 shares of the transportation company’s stock worth $145,000 after purchasing an additional 64 shares during the period. Riverhead Capital Management LLC grew its position in GATX Corporation by 55.4% in the 2nd quarter. Riverhead Capital Management LLC now owns 2,331 shares of the transportation company’s stock worth $150,000 after purchasing an additional 831 shares during the period. Bank of Montreal Can grew its position in GATX Corporation by 19.4% in the 1st quarter. Bank of Montreal Can now owns 2,525 shares of the transportation company’s stock worth $154,000 after purchasing an additional 410 shares during the period. Finally, Advisor Group Inc. grew its position in GATX Corporation by 15.5% in the 2nd quarter. Advisor Group Inc. now owns 2,519 shares of the transportation company’s stock worth $161,000 after purchasing an additional 338 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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