CAI International (CAI) Upgraded to “Hold” at Zacks Investment Research

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Zacks Investment Research upgraded shares of CAI International (NYSE:CAI) from a strong sell rating to a hold rating in a report published on Friday. Zacks Investment Research currently has $28.00 price target on the transportation company’s stock.

According to Zacks, “CAI INTERNATIONAL, INC. is one of the world’s leading intermodal freight container leasing and management companies. Intermodal freight containers are large, standardized steel boxes, which CAI leases primarily to international steamship companies, and are used to transport cargo by a number of means, including ship, truck and rail. A portion of the container fleet is owned by CAI with the balance being owned by third parties on whose behalf CAI manages the containers. Accordingly, CAI operates its business through two segments: container leasing and container fleet management. Through its international network of offices and agents CAI also has developed an active after-market program for containers retired from the international shipping fleet. “

CAI has been the subject of a number of other research reports. Wells Fargo & Co set a $24.00 price target on shares of CAI International and gave the stock a hold rating in a research note on Wednesday, October 31st. ValuEngine upgraded shares of CAI International from a strong sell rating to a sell rating in a research note on Thursday, November 1st. Cowen cut their target price on shares of CAI International from $40.00 to $30.00 and set an outperform rating for the company in a research note on Wednesday, October 31st. Finally, Keefe, Bruyette & Woods upgraded shares of CAI International from a market perform rating to an outperform rating in a research note on Thursday, September 6th. One research analyst has rated the stock with a sell rating, two have issued a hold rating and four have issued a buy rating to the company’s stock. The company currently has an average rating of Hold and an average target price of $29.50.

Shares of NYSE:CAI opened at $25.21 on Friday. The stock has a market capitalization of $483.24 million, a PE ratio of 8.78, a price-to-earnings-growth ratio of 0.81 and a beta of 2.25. CAI International has a 52-week low of $19.35 and a 52-week high of $36.98. The company has a debt-to-equity ratio of 2.93, a quick ratio of 0.48 and a current ratio of 0.48.

CAI International (NYSE:CAI) last issued its quarterly earnings results on Tuesday, October 30th. The transportation company reported $1.03 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.97 by $0.06. The company had revenue of $115.40 million for the quarter, compared to the consensus estimate of $112.40 million. CAI International had a return on equity of 13.08% and a net margin of 22.90%. The firm’s revenue was up 27.9% compared to the same quarter last year. During the same period last year, the business posted $0.90 earnings per share. On average, sell-side analysts predict that CAI International will post 3.85 earnings per share for the current year.

CAI International declared that its board has initiated a share repurchase plan on Monday, October 8th that permits the company to repurchase 3,000,000 shares. This repurchase authorization permits the transportation company to reacquire shares of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s management believes its stock is undervalued.

Several large investors have recently bought and sold shares of CAI. Scopus Asset Management L.P. acquired a new stake in shares of CAI International in the second quarter valued at approximately $14,447,000. United Services Automobile Association increased its holdings in shares of CAI International by 101.0% in the second quarter. United Services Automobile Association now owns 335,232 shares of the transportation company’s stock valued at $45,290,000 after purchasing an additional 168,423 shares in the last quarter. Portolan Capital Management LLC acquired a new stake in shares of CAI International in the second quarter valued at approximately $3,104,000. BlackRock Inc. increased its holdings in shares of CAI International by 11.0% in the second quarter. BlackRock Inc. now owns 1,177,477 shares of the transportation company’s stock valued at $27,365,000 after purchasing an additional 116,607 shares in the last quarter. Finally, Putnam Investments LLC acquired a new stake in shares of CAI International in the second quarter valued at approximately $2,552,000. Institutional investors own 87.82% of the company’s stock.

About CAI International

CAI International, Inc operates as transportation finance and logistics company in the United States and internationally. The company operates through three segments: Container Leasing, Rail Leasing, and Logistics. It leases, re-leases, and disposes equipment; and contracts for the repair, repositioning, and storage of equipment.

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