GATX (NYSE:GATX) Stock Falls 5.1% - What's Next?

Key Points

• GATX shares fell 5.1% to approximately $166.96 in low-volume trading, with volume down 97% from the daily average.
• Analysts remain bullish, with four Buy ratings and an average price target of $219; Citigroup and Susquehanna recently raised their targets.
• GATX reported quarterly EPS of $2.84, beating estimates, while revenue rose 34.8% year over year. The company also maintains a $0.66 quarterly dividend, representing a 1.6% yield.

Shares of GATX Corporation (NYSE:GATX - Get Free Report) dropped 5.1% during trading on Thursday. The stock traded as low as $168.07 and last traded at $166.9580. 6,812 shares traded hands during trading, a decline of 97% from the average daily volume of 219,211 shares. The stock had previously closed at $175.86.

Analyst Ratings Changes

GATX has been the subject of a number of research reports. Citigroup raised their target price on shares of GATX from $214.00 to $215.00 and gave the stock a "buy" rating in a report on Monday, August 3rd. Susquehanna lifted their target price on GATX from $218.00 to $220.00 and gave the stock a "positive" rating in a report on Friday, July 31st. Finally, Weiss Ratings raised GATX from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday, September 4th. Four analysts have rated the stock with a Buy rating, According to MarketBeat.com, the stock currently has an average rating of "Buy" and an average price target of $219.00.

GATX Stock Performance

The company has a quick ratio of 3.90, a current ratio of 3.90 and a debt-to-equity ratio of 3.44. The stock has a market cap of $5.98 billion, a P/E ratio of 16.70 and a beta of 1.17. The firm's 50-day moving average is $179.07 and its two-hundred day moving average is $178.78.

GATX (NYSE:GATX - Get Free Report) last posted its earnings results on Thursday, July 30th. The transportation company reported $2.84 EPS for the quarter, topping the consensus estimate of $2.46 by $0.38. The company had revenue of $580.10 million during the quarter, compared to the consensus estimate of $598.77 million. GATX had a net margin of 17.94% and a return on equity of 10.43%. The company's revenue for the quarter was up 34.8% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.06 earnings per share. GATX has set its FY 2026 guidance at 9.900-10.30 EPS. As a group, research analysts expect that GATX Corporation will post 10.1 EPS for the current year.

GATX Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th were given a dividend of $0.66 per share. This represents a $2.64 annualized dividend and a yield of 1.6%. The ex-dividend date of this dividend was Tuesday, September 15th. GATX's dividend payout ratio is presently 26.14%.

Insider Buying and Selling at GATX

In other news, SVP Eren Doygun sold 1,000 shares of the stock in a transaction dated Wednesday, August 26th. The stock was sold at an average price of $179.52, for a total transaction of $179,520.00. Following the transaction, the senior vice president owned 5,323 shares of the company's stock, valued at approximately $955,584.96. This represents a 15.82% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Thomas A. Ellman sold 18,200 shares of the firm's stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $180.08, for a total value of $3,277,456.00. Following the completion of the transaction, the chief financial officer directly owned 34,361 shares in the company, valued at $6,187,728.88. The trade was a 34.63% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 21,700 shares of company stock worth $3,900,976 over the last three months. Corporate insiders own 1.86% of the company's stock.

Institutional Trading of GATX

Institutional investors and hedge funds have recently modified their holdings of the company. Tidal Investments LLC raised its holdings in GATX by 23.7% in the 2nd quarter. Tidal Investments LLC now owns 6,675 shares of the transportation company's stock worth $1,183,000 after acquiring an additional 1,277 shares during the period. NorthRock Partners LLC acquired a new position in GATX during the 2nd quarter worth $234,000. Baird Financial Group Inc. boosted its holdings in GATX by 11.5% during the second quarter. Baird Financial Group Inc. now owns 1,792 shares of the transportation company's stock valued at $318,000 after acquiring an additional 185 shares during the period. Nykredit A S acquired a new stake in shares of GATX in the second quarter valued at about $238,000. Finally, Amundi increased its stake in shares of GATX by 7.9% in the second quarter. Amundi now owns 9,528 shares of the transportation company's stock worth $1,688,000 after purchasing an additional 700 shares during the period. 93.14% of the stock is currently owned by institutional investors and hedge funds.

GATX Company Profile

GATX Corporation is a global asset-leasing company that primarily owns, manages and leases transportation equipment. Its largest business is railcar leasing, serving railroads, shippers and other industrial customers that use freight rail equipment to transport commodities and manufactured goods.

Through its North American and European rail operations, GATX provides a broad fleet of railcars, including tank cars, freight cars and specialized equipment. The company supports customers with services such as fleet management, maintenance, engineering and regulatory compliance.

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