GATX Corporation (GATX) Rating Lowered to Hold at Zacks Investment Research
GATX Corporation (NYSE:GATX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Thursday.
According to Zacks, “Shares of GATX Corporation have outperformed the industry it belongs to, over the last 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. 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 in the band of $4.40-$4.60, much below the 2016 figure. Moreover, GATX is a highly leveraged company.”
A number of other analysts have also recently commented on GATX. Cowen and Company reaffirmed a “market perform” rating and issued a $63.00 price target (up from $62.00) on shares of GATX Corporation in a research note on Sunday, April 23rd. ValuEngine raised GATX Corporation from a “buy” rating to a “strong-buy” rating in a research note on Saturday, June 3rd. Axiom Securities reaffirmed a “sell” rating on shares of GATX Corporation in a research note on Friday, June 16th. Buckingham Research began coverage on GATX Corporation in a research note on Wednesday, June 21st. They issued a “neutral” rating and a $64.00 price target for the company. Finally, Stifel Nicolaus upgraded GATX Corporation from a “sell” rating to a “hold” rating and boosted their price objective for the company from $50.00 to $54.00 in a research report on Monday, July 17th. Two investment analysts have rated the stock with a sell rating, five have given a hold rating, two have assigned a buy rating and one has assigned a strong buy rating to the stock. GATX Corporation has a consensus rating of “Hold” and a consensus price target of $56.14.
Shares of GATX Corporation (GATX) traded down 2.62% on Thursday, hitting $60.49. 144,572 shares of the company’s stock traded hands. GATX Corporation has a 1-year low of $40.66 and a 1-year high of $66.30. The firm’s 50-day moving average price is $62.57 and its 200 day moving average price is $60.71. The company has a market cap of $2.34 billion, a price-to-earnings ratio of 10.20 and a beta of 1.19.
GATX Corporation (NYSE:GATX) last announced its quarterly earnings results on Thursday, July 20th. The transportation company reported $1.32 EPS for the quarter, beating analysts’ consensus estimates of $1.11 by $0.21. The company had revenue of $348.40 million during the quarter, compared to analysts’ expectations of $352.64 million. GATX Corporation had a return on equity of 17.83% and a net margin of 17.09%. GATX Corporation’s revenue was down 2.9% on a year-over-year basis. During the same period in the prior year, the business posted $1.49 EPS. On average, equities research analysts expect that GATX Corporation will post $4.60 earnings per share for the current year.
In other GATX Corporation news, EVP Deborah A. Golden sold 2,429 shares of the company’s stock in a transaction that occurred on Tuesday, June 13th. The stock was sold at an average price of $65.42, for a total transaction of $158,905.18. Following the completion of the transaction, the executive vice president now owns 39,783 shares of the company’s stock, valued at approximately $2,602,603.86. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, EVP Thomas A. Ellman sold 2,239 shares of the company’s stock in a transaction that occurred on Wednesday, May 24th. The stock was sold at an average price of $61.52, for a total value of $137,743.28. Following the transaction, the executive vice president now directly owns 30,740 shares of the company’s stock, valued at approximately $1,891,124.80. The disclosure for this sale can be found here. Insiders sold a total of 9,517 shares of company stock valued at $601,618 over the last quarter. 3.50% of the stock is owned by insiders.
A number of institutional investors have recently added to or reduced their stakes in the company. Dynamic Technology Lab Private Ltd purchased a new position in GATX Corporation during the second quarter worth $272,000. Public Employees Retirement System of Ohio increased its position 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 worth $1,263,000 after buying an additional 107 shares during the period. Raymond James Financial Services Advisors Inc. purchased a new position in GATX Corporation during the second quarter worth $249,000. BlueCrest Capital Management Ltd purchased a new position in GATX Corporation during the second quarter worth $244,000. Finally, State Street Corp increased its position 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 worth $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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