Greenbrier Companies (NYSE:GBX) Shares Climb 8.9% - Should You Buy?

Key Points

• Greenbrier shares rose 8.9% to about $42.48, despite trading volume running 37% below its average daily level.
• Analyst sentiment remains negative: Bank of America cut its price target to $38, while several firms downgraded the stock; the consensus rating is “Strong Sell” with an average target of $42.67.
• Quarterly results weakened, with EPS of $0.39 missing estimates of $0.80 and revenue falling 22.2% year over year to $591 million. The company declared a quarterly dividend of $0.34 per share, representing a 3.2% annualized yield.

Shares of Greenbrier Companies, Inc. (The) (NYSE:GBX - Get Free Report) traded up 8.9% during trading on Monday. The stock traded as high as $42.30 and last traded at $42.4760. Approximately 277,021 shares changed hands during trading, a decline of 37% from the average daily volume of 443,225 shares. The stock had previously closed at $39.01.

Analyst Ratings Changes

GBX has been the topic of a number of analyst reports. Bank of America decreased their target price on shares of Greenbrier Companies from $42.00 to $38.00 and set an "underperform" rating on the stock in a research report on Tuesday, October 27th. Wall Street Zen lowered shares of Greenbrier Companies from a "hold" rating to a "sell" rating in a research report on Saturday, October 24th. Weiss Ratings cut Greenbrier Companies from a "hold (c)" rating to a "hold (c-)" rating in a research note on Tuesday, October 27th. Finally, Zacks Research downgraded Greenbrier Companies from a "hold" rating to a "strong sell" rating in a report on Tuesday, October 27th. Two investment analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Strong Sell" and an average price target of $42.67.

Greenbrier Companies Stock Performance

The company has a debt-to-equity ratio of 1.09, a current ratio of 2.43 and a quick ratio of 1.24. The stock has a market cap of $1.31 billion, a PE ratio of 16.98, a price-to-earnings-growth ratio of 0.41 and a beta of 1.53. The business has a 50 day moving average price of $41.36 and a two-hundred day moving average price of $48.17.

Greenbrier Companies (NYSE:GBX - Get Free Report) last posted its earnings results on Monday, October 26th. The transportation company reported $0.39 earnings per share for the quarter, missing analysts' consensus estimates of $0.80 by ($0.41). Greenbrier Companies had a return on equity of 4.85% and a net margin of 3.21%. The firm had revenue of $591.00 million for the quarter, compared to analysts' expectations of $605.10 million. During the same quarter in the prior year, the company posted $1.26 earnings per share. The business's revenue for the quarter was down 22.2% on a year-over-year basis. As a group, equities research analysts forecast that Greenbrier Companies, Inc. will post 3.30 EPS for the current fiscal year.

Greenbrier Companies Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 2nd. Shareholders of record on Wednesday, November 11th will be given a dividend of $0.34 per share. This represents a $1.36 dividend on an annualized basis and a yield of 3.2%. The ex-dividend date of this dividend is Tuesday, November 10th. Greenbrier Companies's payout ratio is presently 54.84%.

Institutional Investors Weigh In On Greenbrier Companies

Institutional investors and hedge funds have recently modified their holdings of the stock. Dimensional Fund Advisors LP raised its stake in Greenbrier Companies by 0.7% in the first quarter. Dimensional Fund Advisors LP now owns 1,979,546 shares of the transportation company's stock worth $104,222,000 after buying an additional 13,153 shares in the last quarter. Atlas FRM LLC bought a new stake in Greenbrier Companies during the 2nd quarter valued at approximately $38,599,688. Donald Smith & CO. Inc. purchased a new position in shares of Greenbrier Companies during the 2nd quarter worth approximately $31,987,000. Bank of New York Mellon Corp bought a new position in shares of Greenbrier Companies in the 2nd quarter worth approximately $18,324,000. Finally, Principal Financial Group Inc. raised its position in shares of Greenbrier Companies by 1.7% in the 1st quarter. Principal Financial Group Inc. now owns 150,096 shares of the transportation company's stock worth $7,903,000 after acquiring an additional 2,564 shares in the last quarter. 95.59% of the stock is owned by hedge funds and other institutional investors.

Greenbrier Companies Company Profile

Greenbrier Companies, Inc is a transportation equipment company that designs, manufactures and supplies freight railcars and related services. Its products include covered hopper cars, tank cars, gondolas, boxcars, intermodal equipment and railcars used to transport automobiles and other specialized cargo.

The company also provides railcar leasing and management services, maintenance, refurbishment, wheel services and parts. Through its manufacturing and service operations, Greenbrier supports railroads, leasing companies, shippers and other participants in the North American freight transportation industry.

Founded in 1974 and headquartered in Lake Oswego, Oregon, Greenbrier has expanded its operations beyond the United States, with manufacturing and service activities serving customers in North America and international markets.

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