Trinity Industries (NYSE:TRN) Shares Up 9.7% - Should You Buy?

Key Points

• Trinity Industries shares rose 9.7% to $28.05, although trading volume was 86% below the average session volume.
• Analysts maintain a consensus “Hold” rating with a $32.00 price target; Goldman Sachs set a $30 target, while Susquehanna lowered its target to $34.
• The company met quarterly EPS expectations at $0.27, while revenue reached $535.1 million and increased 17.8% year over year. Trinity also declared a $0.31 quarterly dividend, representing a 4.4% annualized yield.

Trinity Industries, Inc. (NYSE:TRN - Get Free Report)'s share price was up 9.7% during trading on Thursday. The company traded as high as $28.52 and last traded at $28.05. 106,302 shares were traded during trading, a decline of 86% from the average session volume of 745,659 shares. The stock had previously closed at $25.56.

Analysts Set New Price Targets

TRN has been the subject of a number of research analyst reports. The Goldman Sachs Group set a $30.00 price target on shares of Trinity Industries in a report on Tuesday, October 20th. Weiss Ratings lowered Trinity Industries from a "hold (c+)" rating to a "hold (c)" rating in a research note on Thursday, October 22nd. Finally, Susquehanna dropped their price target on Trinity Industries from $35.00 to $34.00 and set a "neutral" rating for the company in a research note on Friday, July 31st. Three research analysts have rated the stock with a Hold rating. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $32.00.

Trinity Industries Trading Up 10.1%

The company has a quick ratio of 0.91, a current ratio of 1.89 and a debt-to-equity ratio of 4.56. The firm's 50 day simple moving average is $27.28 and its two-hundred day simple moving average is $31.33. The stock has a market cap of $2.24 billion, a P/E ratio of 6.76 and a beta of 1.37.

Trinity Industries (NYSE:TRN - Get Free Report) last released its quarterly earnings data on Thursday, October 29th. The transportation company reported $0.27 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.27. Trinity Industries had a return on equity of 18.51% and a net margin of 16.62%. The business had revenue of $535.10 million during the quarter, compared to analyst estimates of $543.36 million. During the same quarter in the previous year, the firm posted $0.38 EPS. The business's revenue for the quarter was up 17.8% compared to the same quarter last year. As a group, equities research analysts predict that Trinity Industries, Inc. will post 2.30 earnings per share for the current fiscal year.

Trinity Industries Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Thursday, October 15th will be issued a $0.31 dividend. The ex-dividend date of this dividend is Thursday, October 15th. This represents a $1.24 annualized dividend and a yield of 4.4%. Trinity Industries's dividend payout ratio is presently 29.88%.

Insider Activity

In related news, EVP Kevin Poet sold 17,000 shares of the business's stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $29.55, for a total transaction of $502,350.00. Following the sale, the executive vice president owned 69,225 shares of the company's stock, valued at $2,045,598.75. The trade was a 19.72% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.10% of the stock is owned by company insiders.

Institutional Investors Weigh In On Trinity Industries

Several hedge funds and other institutional investors have recently bought and sold shares of the business. BlackRock Inc. grew its position in Trinity Industries by 2.9% during the second quarter. BlackRock Inc. now owns 13,356,707 shares of the transportation company's stock worth $461,875,000 after buying an additional 370,390 shares in the last quarter. Dimensional Fund Advisors LP grew its holdings in shares of Trinity Industries by 1.7% in the 1st quarter. Dimensional Fund Advisors LP now owns 4,801,236 shares of the transportation company's stock worth $154,500,000 after purchasing an additional 81,263 shares during the last quarter. State Street Corp lifted its holdings in Trinity Industries by 6.3% during the 2nd quarter. State Street Corp now owns 4,123,807 shares of the transportation company's stock valued at $142,601,000 after purchasing an additional 245,434 shares during the last quarter. Bank of America Corp DE boosted its position in Trinity Industries by 9.2% in the first quarter. Bank of America Corp DE now owns 1,089,488 shares of the transportation company's stock valued at $35,060,000 after buying an additional 91,964 shares in the last quarter. Finally, Bank of New York Mellon Corp grew its stake in Trinity Industries by 0.4% during the second quarter. Bank of New York Mellon Corp now owns 890,037 shares of the transportation company's stock worth $30,777,000 after buying an additional 3,568 shares during the last quarter. 86.57% of the stock is currently owned by institutional investors.

Trinity Industries Company Profile

Trinity Industries, Inc is a North American industrial company focused primarily on rail transportation products and services. Through its TrinityRail business, the company designs and manufactures freight railcars, including covered hoppers, gondolas, tank cars and other specialized rail equipment used to transport commodities and industrial goods.

TrinityRail also provides railcar leasing, fleet management, maintenance and refurbishment services. These offerings support railroads, shippers and other fleet owners throughout the life cycle of their equipment, from initial design and production to ongoing maintenance and compliance services.

Founded in 1933 and headquartered in Dallas, Texas, Trinity Industries has historically operated across several industrial and infrastructure markets, but has increasingly concentrated on its rail platform.

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