Encompass Capital Advisors LLC Reduces Stock Holdings in Trinity Industries, Inc. $TRN

Key Points

• Encompass Capital Advisors LLC significantly reduced its stake in Trinity Industries by 60.9%, now owning 779,039 shares valued at approximately $21.86 million after selling over 1.2 million shares.
• Trinity Industries' quarterly earnings report revealed an EPS of $0.19, missing estimates by $0.12, with revenue down 39.8% year-over-year.
• Research analysts have a consensus rating of "Hold" for Trinity Industries, with a revised price target of $24.00 by Susquehanna.

Encompass Capital Advisors LLC reduced its position in shares of Trinity Industries, Inc. (NYSE:TRN - Free Report) by 60.9% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 779,039 shares of the transportation company's stock after selling 1,213,242 shares during the period. Encompass Capital Advisors LLC owned approximately 0.95% of Trinity Industries worth $21,860,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds have also added to or reduced their stakes in the company. AQR Capital Management LLC increased its stake in Trinity Industries by 33.8% during the 1st quarter. AQR Capital Management LLC now owns 44,772 shares of the transportation company's stock worth $1,244,000 after acquiring an additional 11,319 shares during the period. Advisors Asset Management Inc. increased its stake in Trinity Industries by 12.8% during the 1st quarter. Advisors Asset Management Inc. now owns 159,691 shares of the transportation company's stock worth $4,481,000 after acquiring an additional 18,118 shares during the period. Adage Capital Partners GP L.L.C. bought a new position in Trinity Industries during the 1st quarter worth $841,000. Cubist Systematic Strategies LLC increased its stake in Trinity Industries by 508.2% during the 1st quarter. Cubist Systematic Strategies LLC now owns 380,753 shares of the transportation company's stock worth $10,684,000 after acquiring an additional 318,151 shares during the period. Finally, Royal Bank of Canada increased its stake in Trinity Industries by 0.6% during the 1st quarter. Royal Bank of Canada now owns 73,775 shares of the transportation company's stock worth $2,069,000 after acquiring an additional 457 shares during the period. 86.57% of the stock is owned by institutional investors and hedge funds.

Trinity Industries Price Performance

TRN stock traded down $0.08 during midday trading on Tuesday, reaching $28.25. 142,348 shares of the stock were exchanged, compared to its average volume of 615,957. The stock has a market capitalization of $2.28 billion, a PE ratio of 24.78 and a beta of 1.52. Trinity Industries, Inc. has a 52 week low of $22.38 and a 52 week high of $39.83. The company has a debt-to-equity ratio of 4.66, a current ratio of 1.96 and a quick ratio of 1.01. The company has a fifty day moving average price of $27.46 and a 200 day moving average price of $27.07.

Trinity Industries (NYSE:TRN - Get Free Report) last announced its earnings results on Thursday, July 31st. The transportation company reported $0.19 EPS for the quarter, missing the consensus estimate of $0.31 by ($0.12). Trinity Industries had a return on equity of 8.49% and a net margin of 3.83%.The company had revenue of $506.20 million for the quarter, compared to analyst estimates of $589.96 million. During the same period in the previous year, the firm posted $0.66 earnings per share. The firm's quarterly revenue was down 39.8% compared to the same quarter last year. Trinity Industries has set its FY 2025 guidance at 1.400-1.60 EPS. As a group, analysts expect that Trinity Industries, Inc. will post 1.65 EPS for the current fiscal year.

Trinity Industries Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 31st. Stockholders of record on Wednesday, October 15th will be issued a $0.30 dividend. The ex-dividend date of this dividend is Wednesday, October 15th. This represents a $1.20 annualized dividend and a dividend yield of 4.2%. Trinity Industries's dividend payout ratio is currently 105.26%.

Analysts Set New Price Targets

A number of research firms have commented on TRN. Wall Street Zen upgraded Trinity Industries from a "sell" rating to a "hold" rating in a research note on Saturday, August 30th. Susquehanna lowered their price objective on Trinity Industries from $26.00 to $24.00 and set a "neutral" rating on the stock in a research note on Tuesday, July 29th. Two equities research analysts have rated the stock with a Hold rating, According to data from MarketBeat, Trinity Industries presently has an average rating of "Hold" and an average price target of $27.50.

Trinity Industries Company Profile

Trinity Industries, Inc provides rail transportation products and services under the TrinityRail name in North America. It operates in two segments, Railcar Leasing and Management Services Group, and Rail Products Group. The Railcar Leasing and Management Services Group segment leases freight and tank railcars; originates and manages railcar leases for third-party investors; and provides fleet maintenance and management services.