Greenbrier Companies (NYSE:GBX) Stock Price Breaks Above 50-Day Moving Average - Should You Sell?

Key Points

• Greenbrier shares rose above their 50-day moving average, reaching $42.61 and last trading near $42.11, but remained below the 200-day average of $48.14.
• Analyst sentiment is strongly negative: two analysts rate the stock Hold and three rate it Sell, producing a consensus rating of “Strong Sell” and an average price target of $42.67.
• The company missed quarterly earnings expectations, reporting $0.39 in EPS versus $0.80 expected, while revenue fell 22.2% year over year. Greenbrier nonetheless declared a quarterly dividend of $0.34, equal to a 3.2% annualized yield.

Greenbrier Companies, Inc. (The) (NYSE:GBX - Get Free Report) shares passed above its fifty day moving average during trading on Monday. The stock has a fifty day moving average of $41.28 and traded as high as $42.61. Greenbrier Companies shares last traded at $42.1070, with a volume of 929,155 shares trading hands.

Wall Street Analyst Weigh In

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

Greenbrier Companies Price Performance

The stock has a market capitalization of $1.31 billion, a price-to-earnings ratio of 16.98, a P/E/G ratio of 0.39 and a beta of 1.45. The company's 50-day simple moving average is $41.28 and its 200-day simple moving average is $48.14. The company has a debt-to-equity ratio of 1.09, a current ratio of 2.43 and a quick ratio of 0.34.

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

Greenbrier Companies Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 2nd. Shareholders of record on Wednesday, November 11th will be issued a $0.34 dividend. 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 dividend payout ratio is currently 54.84%.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the company. Dimensional Fund Advisors LP grew its stake in shares of 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 valued at $104,222,000 after acquiring an additional 13,153 shares in the last quarter. Atlas FRM LLC acquired a new stake in Greenbrier Companies in the 2nd quarter worth about $38,599,688. Donald Smith & CO. Inc. acquired a new stake in Greenbrier Companies in the 2nd quarter worth about $31,987,000. Bank of New York Mellon Corp acquired a new stake in Greenbrier Companies in the 2nd quarter worth about $18,324,000. Finally, Principal Financial Group Inc. boosted its holdings in Greenbrier Companies by 1.7% in the 1st quarter. Principal Financial Group Inc. now owns 150,096 shares of the transportation company's stock valued at $7,903,000 after purchasing an additional 2,564 shares during the period. Institutional investors own 95.59% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.