Trane Technologies (NYSE:TT) Stock Price Down 7.4% - What's Next?

Key Points

• Trane Technologies shares fell 7.4% to about $415.43 in mid-day trading, with volume roughly 75% below its average. The stock remains below its 50-day and 200-day moving averages.
• Despite the selloff, the company exceeded quarterly expectations, reporting $4.86 EPS on $6.76 billion in revenue; revenue increased 17.7% year over year. Analysts maintain a “Moderate Buy” consensus with an average price target of $539.42.
• Trane Technologies declared a quarterly dividend of $1.05, equivalent to a $4.20 annual payout and 1.0% yield. CEO David Regnery also sold 48,091 shares under a pre-arranged trading plan, while institutional investors own 82.97% of the stock.

Trane Technologies plc (NYSE:TT - Get Free Report) shares traded down 7.4% during mid-day trading on Thursday. The company traded as low as $410.05 and last traded at $415.4270. Approximately 345,579 shares changed hands during mid-day trading, a decline of 75% from the average daily volume of 1,363,681 shares. The stock had previously closed at $448.47.

Analyst Ratings Changes

Several research firms have recently commented on TT. Wall Street Zen lowered shares of Trane Technologies from a "buy" rating to a "hold" rating in a research report on Sunday, August 30th. Sanford C. Bernstein upped their price target on Trane Technologies from $555.00 to $575.00 and gave the company an "outperform" rating in a research note on Friday, August 14th. Royal Bank Of Canada boosted their price objective on shares of Trane Technologies from $496.00 to $502.00 and gave the company a "sector perform" rating in a report on Wednesday, October 14th. Deutsche Bank Aktiengesellschaft dropped their price target on shares of Trane Technologies from $515.00 to $499.00 and set a "hold" rating for the company in a research report on Wednesday, September 30th. Finally, Citigroup dropped their target price on shares of Trane Technologies from $570.00 to $566.00 and set a "buy" rating for the company in a report on Friday, July 31st. Two equities research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and four have given a Hold rating to the company. According to MarketBeat, Trane Technologies has an average rating of "Moderate Buy" and a consensus target price of $539.42.

Trane Technologies Stock Performance

The company has a market capitalization of $94.14 billion, a price-to-earnings ratio of 32.41, a PEG ratio of 2.08 and a beta of 1.15. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.07 and a quick ratio of 0.76. The stock has a 50 day simple moving average of $451.88 and a two-hundred day simple moving average of $453.61.

Trane Technologies (NYSE:TT - Get Free Report) last released its quarterly earnings data on Thursday, October 29th. The company reported $4.86 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.74 by $0.12. Trane Technologies had a return on equity of 35.72% and a net margin of 13.28%. The business had revenue of $6.76 billion during the quarter, compared to analysts' expectations of $6.50 billion. During the same period in the prior year, the firm posted $3.88 EPS. The business's quarterly revenue was up 17.7% compared to the same quarter last year. As a group, analysts anticipate that Trane Technologies plc will post 15.32 earnings per share for the current year.

Trane Technologies Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 31st. Shareholders of record on Friday, December 4th will be paid a $1.05 dividend. This represents a $4.20 annualized dividend and a yield of 1.0%. The ex-dividend date is Friday, December 4th. Trane Technologies's dividend payout ratio is currently 31.82%.

Insiders Place Their Bets

In other news, CEO David Regnery sold 48,091 shares of the business's stock in a transaction that occurred on Tuesday, October 6th. The shares were sold at an average price of $480.00, for a total transaction of $23,083,680.00. Following the completion of the sale, the chief executive officer owned 96,951 shares in the company, valued at approximately $46,536,480. The trade was a 33.16% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.43% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of TT. Amundi increased its position in shares of Trane Technologies by 47.8% in the first quarter. Amundi now owns 2,174,396 shares of the company's stock worth $906,158,000 after acquiring an additional 703,018 shares in the last quarter. Janus Henderson Group PLC boosted its stake in Trane Technologies by 10.6% in the 1st quarter. Janus Henderson Group PLC now owns 1,878,018 shares of the company's stock worth $782,707,000 after purchasing an additional 180,537 shares during the period. Dimensional Fund Advisors LP raised its stake in Trane Technologies by 3.2% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,035,241 shares of the company's stock valued at $431,347,000 after purchasing an additional 32,286 shares during the period. Ninety One UK Ltd raised its stake in Trane Technologies by 0.4% during the 3rd quarter. Ninety One UK Ltd now owns 926,668 shares of the company's stock valued at $418,835,000 after purchasing an additional 3,624 shares during the period. Finally, California Public Employees Retirement System lifted its holdings in shares of Trane Technologies by 51.9% in the first quarter. California Public Employees Retirement System now owns 686,691 shares of the company's stock valued at $286,172,000 after purchasing an additional 234,666 shares in the last quarter. 82.97% of the stock is owned by hedge funds and other institutional investors.

About Trane Technologies

Trane Technologies plc is a global climate technology company that develops solutions for heating, ventilation, air conditioning, refrigeration and building management. Its products and services are designed to improve indoor comfort, energy efficiency and the sustainability of commercial, industrial, residential and institutional buildings.

The company operates through well-known brands including Trane, Thermo King and Frigoblock. Trane provides HVAC equipment, building controls, digital solutions, maintenance and energy services, while Thermo King and Frigoblock offer temperature-control systems for refrigerated transportation.

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