Zacks Investment Research Downgrades GATX (GATX) to Hold

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Zacks Investment Research lowered shares of GATX (NYSE:GATX) from a buy rating to a hold rating in a research report report published on Monday morning.

According to Zacks, “Shares of GATX have outperformed its industry in a year's time. The company has an impressive earnings history having surpassed estimates in three of the trailing four quarters with an average beat of 29%. Moreover improved market conditions have led the company to raise its outlook for 2018 earnings per share. We are also impressed by the company’s efforts to reward its shareholders through share buybacks and dividend payments. Efforts to modernize its fleet are also encouraging. However, rising fuel costs are limiting bottom-line growth. The bottom line is expected to remain under pressure mainly due to this reason in the coming quarters as well.   We are also concerned about the company's high debt levels.”

Other analysts also recently issued reports about the company. Mizuho restated a buy rating and issued a $95.00 price target on shares of GATX in a research note on Friday, July 20th. Stifel Nicolaus set a $78.00 price target on GATX and gave the company a hold rating in a research note on Thursday, July 19th. ValuEngine upgraded GATX from a hold rating to a buy rating in a research note on Friday, June 29th. Finally, Buckingham Research lifted their price target on GATX from $67.00 to $74.00 and gave the company a neutral rating in a research note on Friday, July 27th. Five research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. GATX has an average rating of Hold and a consensus price target of $81.17.

NYSE:GATX opened at $83.28 on Monday. The company has a market capitalization of $3.18 billion, a PE ratio of 17.72, a P/E/G ratio of 1.11 and a beta of 1.39. The company has a current ratio of 2.77, a quick ratio of 2.77 and a debt-to-equity ratio of 2.43. GATX has a 12-month low of $56.00 and a 12-month high of $91.12.

GATX (NYSE:GATX) last released its earnings results on Thursday, July 19th. The transportation company reported $1.16 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.92 by $0.24. GATX had a return on equity of 11.34% and a net margin of 37.03%. The business had revenue of $349.50 million for the quarter, compared to analyst estimates of $340.50 million. During the same quarter in the previous year, the company posted $1.32 earnings per share. The company’s revenue for the quarter was up .3% compared to the same quarter last year. equities analysts predict that GATX will post 5.06 earnings per share for the current year.

The firm also recently declared a quarterly dividend, which will be paid on Sunday, September 30th. Investors of record on Friday, September 14th will be paid a $0.44 dividend. The ex-dividend date of this dividend is Thursday, September 13th. This represents a $1.76 dividend on an annualized basis and a dividend yield of 2.11%. GATX’s dividend payout ratio (DPR) is presently 37.45%.

In other GATX news, VP William M. Muckian sold 3,930 shares of the business’s stock in a transaction on Wednesday, August 8th. The stock was sold at an average price of $84.94, for a total transaction of $333,814.20. Following the sale, the vice president now directly owns 14,560 shares in the company, valued at $1,236,726.40. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Brian A. Kenney sold 20,743 shares of the business’s stock in a transaction on Wednesday, August 22nd. The stock was sold at an average price of $85.94, for a total value of $1,782,653.42. Following the sale, the chief executive officer now owns 238,111 shares in the company, valued at $20,463,259.34. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 40,799 shares of company stock worth $3,473,517. Company insiders own 3.63% of the company’s stock.

A number of institutional investors and hedge funds have recently bought and sold shares of the business. BlackRock Inc. boosted its position in GATX by 1.4% during the second quarter. BlackRock Inc. now owns 4,280,856 shares of the transportation company’s stock worth $317,768,000 after purchasing an additional 58,854 shares in the last quarter. Earnest Partners LLC boosted its position in GATX by 1.0% during the first quarter. Earnest Partners LLC now owns 1,659,467 shares of the transportation company’s stock worth $113,657,000 after purchasing an additional 16,580 shares in the last quarter. Janus Henderson Group PLC boosted its position in GATX by 20.6% during the second quarter. Janus Henderson Group PLC now owns 849,712 shares of the transportation company’s stock worth $63,074,000 after purchasing an additional 145,019 shares in the last quarter. LSV Asset Management boosted its position in GATX by 1.3% during the first quarter. LSV Asset Management now owns 599,581 shares of the transportation company’s stock worth $41,065,000 after purchasing an additional 7,472 shares in the last quarter. Finally, Schwab Charles Investment Management Inc. boosted its position in GATX by 3.6% during the first quarter. Schwab Charles Investment Management Inc. now owns 347,731 shares of the transportation company’s stock worth $23,817,000 after purchasing an additional 12,094 shares in the last quarter.

About GATX

GATX Corporation leases, operates, manages, and remarkets assets in the rail and marine markets in North America and internationally. The company operates through four segments: Rail North America, Rail International, American Steamship Company (ASC), and Portfolio Management. The Rail North America segment primarily leases railcars and locomotives.

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