Zacks Investment Research Upgrades GATX (GATX) to Hold

GATX (NYSE:GATX) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report released on Monday.

According to Zacks, “GATX reported better-than-expected earnings and revenues in the fourth quarter of 2018. Both the metrics improved on a year-over-year basis. We are also impressed by the company's efforts to expand its fleet. In November 2018, the company inked a deal with ECN Capital Corporation to buy up to 3,100 railcars from the latter. The company's efforts to reward shareholders through dividends and buybacks look encouraging as well. On the flip side, dismal performance of the company's primary unit — Rail North America in the fourth quarter concern us. Increased maintenance costs and higher interest rates are likely to supress profits at this key segment. Notably, segmental profit at Rail North America is estimated to be around $40 million-$50 million less than the 2018 level. The company's high debt levels are concerning as well.”

Other analysts have also issued research reports about the company. Wells Fargo & Co set a $90.00 target price on GATX and gave the company an “outperform” rating in a report on Wednesday, January 23rd. Mizuho set a $90.00 target price on GATX and gave the company a “buy” rating in a report on Thursday, October 25th. Three research analysts have rated the stock with a hold rating and three have assigned a buy rating to the stock. GATX has a consensus rating of “Buy” and a consensus target price of $84.00.

NYSE:GATX opened at $74.44 on Monday. The firm has a market capitalization of $2.75 billion, a price-to-earnings ratio of 14.26, a price-to-earnings-growth ratio of 0.97 and a beta of 1.55. The company has a debt-to-equity ratio of 2.55, a current ratio of 1.77 and a quick ratio of 3.05. GATX has a 1 year low of $63.98 and a 1 year high of $91.12.

GATX (NYSE:GATX) last released its quarterly earnings data on Tuesday, January 22nd. The transportation company reported $0.84 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.74 by $0.10. The firm had revenue of $356.40 million during the quarter, compared to analysts’ expectations of $348.64 million. GATX had a return on equity of 10.97% and a net margin of 15.53%. GATX’s revenue was up 1.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted $8.83 earnings per share. As a group, sell-side analysts anticipate that GATX will post 5 EPS for the current year.

In other GATX news, VP Robert Zmudka sold 1,526 shares of the company’s stock in a transaction on Thursday, January 31st. The stock was sold at an average price of $76.61, for a total value of $116,906.86. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. 3.63% of the stock is currently owned by corporate insiders.

Several institutional investors and hedge funds have recently bought and sold shares of GATX. Doyle Wealth Management acquired a new stake in shares of GATX during the fourth quarter valued at $28,000. Ffcm LLC boosted its stake in shares of GATX by 275.0% during the fourth quarter. Ffcm LLC now owns 450 shares of the transportation company’s stock valued at $32,000 after acquiring an additional 330 shares during the last quarter. Private Capital Group LLC boosted its stake in shares of GATX by 98.9% during the fourth quarter. Private Capital Group LLC now owns 742 shares of the transportation company’s stock valued at $53,000 after acquiring an additional 369 shares during the last quarter. Clarus Wealth Advisors acquired a new stake in shares of GATX during the fourth quarter valued at $87,000. Finally, FMR LLC acquired a new stake in shares of GATX during the third quarter valued at $105,000.

GATX Company Profile

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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