GATX (NYSE:GATX) Stock Jumps 7.8% Following Strong Earnings

Key Points

• GATX shares rose 7.8% after the company reported quarterly EPS of $2.92, beating estimates of $2.46. Revenue increased 36.1% year over year.
• The company declared a quarterly dividend of $0.66, equivalent to an annualized $2.64 payout and a 1.5% yield.
• Analysts maintain a favorable outlook, with an average “Buy” rating and an average price target of $219.33, although company insiders sold approximately $3.9 million of stock over the past 90 days.

GATX Corporation (NYSE:GATX - Get Free Report)'s share price traded up 7.8% during trading on Thursday following a better than expected earnings announcement. The stock traded as high as $183.84 and last traded at $182.0790. Approximately 126,714 shares changed hands during mid-day trading, a decline of 42% from the average session volume of 217,383 shares. The stock had previously closed at $168.87.

The transportation company reported $2.92 EPS for the quarter, beating the consensus estimate of $2.46 by $0.46. GATX had a net margin of 17.94% and a return on equity of 10.43%. During the same period last year, the business earned $2.25 earnings per share. The company's revenue was up 36.1% on a year-over-year basis.

GATX Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th were issued a $0.66 dividend. The ex-dividend date was Tuesday, September 15th. This represents a $2.64 dividend on an annualized basis and a yield of 1.5%. GATX's dividend payout ratio (DPR) is 26.14%.

Analysts Set New Price Targets

A number of research firms have recently commented on GATX. Susquehanna increased their price objective on GATX from $218.00 to $220.00 and gave the company a "positive" rating in a report on Friday, July 31st. Weiss Ratings downgraded shares of GATX from a "buy (b)" rating to a "buy (b-)" rating in a research report on Wednesday, October 21st. Finally, Citigroup lifted their price target on shares of GATX from $215.00 to $216.00 and gave the stock a "buy" rating in a research note on Thursday, October 8th. Four investment analysts have rated the stock with a Buy rating. According to data from MarketBeat, GATX has an average rating of "Buy" and an average target price of $219.33.

Insider Activity

In other news, VP Geoffrey Phillips sold 2,500 shares of the firm's stock in a transaction that occurred on Friday, September 11th. The shares were sold at an average price of $177.60, for a total transaction of $444,000.00. Following the transaction, the vice president directly owned 1 shares in the company, valued at approximately $177.60. This trade represents a 99.96% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Thomas Ellman sold 18,200 shares of GATX stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $180.08, for a total transaction 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 SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 21,700 shares of company stock valued at $3,900,976. 1.86% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On GATX

Several hedge funds have recently modified their holdings of the stock. Root Financial Partners LLC purchased a new stake in GATX in the third quarter valued at approximately $28,000. Northwestern Mutual Wealth Management Co. purchased a new position in GATX during the second quarter worth approximately $32,000. Assetmark Inc. raised its stake in GATX by 50.8% during the first quarter. Assetmark Inc. now owns 196 shares of the transportation company's stock worth $33,000 after purchasing an additional 66 shares during the period. Versant Capital Management Inc boosted its holdings in shares of GATX by 23.3% in the 2nd quarter. Versant Capital Management Inc now owns 407 shares of the transportation company's stock valued at $72,000 after purchasing an additional 77 shares during the last quarter. Finally, Farther Finance Advisors LLC grew its stake in shares of GATX by 53.2% during the 3rd quarter. Farther Finance Advisors LLC now owns 688 shares of the transportation company's stock valued at $117,000 after buying an additional 239 shares during the period. 93.14% of the stock is owned by institutional investors and hedge funds.

GATX Price Performance

The company has a market capitalization of $6.41 billion, a PE ratio of 18.05 and a beta of 1.19. The company has a current ratio of 3.90, a quick ratio of 3.90 and a debt-to-equity ratio of 3.44. The company's 50 day moving average price is $173.50 and its 200-day moving average price is $178.82.

GATX Company Profile

GATX Corporation is a global asset-leasing company focused primarily on rail transportation. Through its rail businesses, the company owns, leases and manages a diverse fleet of freight railcars used to transport commodities and manufactured goods, including tank cars, covered and open hoppers, boxcars and specialized rail equipment. GATX also provides fleet management, maintenance and other services that support railcar customers.

GATX serves customers across North America and Europe through operations that include GATX Rail North America and GATX Rail Europe.

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