GATX Corporation (GATX) Cut to Hold at Zacks Investment Research
Zacks Investment Research cut shares of GATX Corporation (NYSE:GATX) from a buy rating to a hold rating in a research note released on Tuesday morning.
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. We are also impressed by GATX Corporation's efforts to reward investors through share buybacks and dividend payments. Additionally, the improvement in profits at the Rail International segment is encouraging. 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 between $4.40 and $4.60. The projection is much below the figure recorded in 2016. Moreover, GATX is a highly leveraged company.”
A number of other research analysts also recently commented on the stock. BidaskClub downgraded shares of GATX Corporation from a hold rating to a sell rating in a research report on Saturday, September 9th. ValuEngine raised shares of GATX Corporation from a buy rating to a strong-buy rating in a research report on Friday, September 1st. Cowen and Company reissued a hold rating and issued a $63.00 price objective on shares of GATX Corporation in a research report on Monday, August 28th. Axiom Securities reissued a sell rating on shares of GATX Corporation in a research report on Wednesday, July 26th. Finally, Citigroup Inc. reduced 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. Two investment analysts have rated the stock with a sell rating, six have issued a hold rating, two have issued a buy rating and one has issued a strong buy rating to the stock. GATX Corporation presently has an average rating of Hold and a consensus price target of $55.71.
GATX Corporation (GATX) traded down 0.02% during midday trading on Tuesday, reaching $61.53. 27,171 shares of the company’s stock were exchanged. The firm has a 50-day moving average price of $60.90 and a 200 day moving average price of $60.97. The company has a market cap of $2.38 billion, a price-to-earnings ratio of 10.37 and a beta of 1.20. GATX Corporation has a 52 week low of $41.15 and a 52 week high of $66.30.
GATX Corporation (NYSE:GATX) last announced its quarterly earnings data on Thursday, July 20th. The transportation company reported $1.32 EPS for the quarter, beating analysts’ consensus estimates of $1.11 by $0.21. GATX Corporation had a net margin of 17.09% and a return on equity of 17.83%. The company had revenue of $348.40 million during the quarter, compared to the consensus estimate of $352.64 million. During the same quarter last year, the firm posted $1.49 EPS. The company’s quarterly revenue was down 2.9% on a year-over-year basis. Analysts anticipate that GATX Corporation will post $4.60 EPS for the current year.
The firm 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 2.73%. The ex-dividend date is Thursday, September 14th. GATX Corporation’s dividend payout ratio is currently 28.38%.
In other GATX Corporation news, VP Jeffery R. Young sold 2,910 shares of the business’s stock in a transaction dated Wednesday, September 13th. The shares were sold at an average price of $58.70, for a total value 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 approximately $403,914.70. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 3.50% of the company’s stock.
A number of hedge funds and other institutional investors have recently bought and sold shares of GATX. Bank of Montreal Can boosted its holdings 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 valued at $154,000 after purchasing an additional 410 shares during the period. Capstone Asset Management Co. acquired a new position in shares of GATX Corporation in the 1st quarter valued at approximately $200,000. Russell Investments Group Ltd. raised its position in shares of GATX Corporation by 281.2% in the 1st quarter. Russell Investments Group Ltd. now owns 6,904 shares of the transportation company’s stock valued at $421,000 after buying an additional 5,093 shares in the last quarter. Oregon Public Employees Retirement Fund raised its position in shares of GATX Corporation by 1.4% in the 1st quarter. Oregon Public Employees Retirement Fund now owns 14,155 shares of the transportation company’s stock valued at $863,000 after buying an additional 200 shares in the last quarter. Finally, Great West Life Assurance Co. Can raised its position in shares of GATX Corporation by 3.3% in the 1st quarter. Great West Life Assurance Co. Can now owns 22,254 shares of the transportation company’s stock valued at $1,357,000 after buying an additional 706 shares in the last quarter.
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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