Trane Technologies (NYSE:TT) Shares Gap Down After Analyst Downgrade

Key Points

• Shares of Trane Technologies gapped down after UBS trimmed its price target from $544 to $520; the stock opened at $367.12 (prior close $390.97) and was last trading around $362.73, down roughly 7.7%.
• Analyst coverage is mixed — eight Buys, nine Holds and one Sell — producing a MarketBeat consensus rating of Hold and an average target price of $467.80.
• Operationally, TT beat quarterly EPS estimates ($3.88 vs. $3.80) while slightly missing revenue, provided FY2025 guidance of 12.95–13.05 EPS, and pays a $0.94 quarterly dividend (about a 1.0% yield).

Trane Technologies plc (NYSE:TT - Get Free Report)'s share price gapped down prior to trading on Tuesday after UBS Group lowered their price target on the stock from $544.00 to $520.00. The stock had previously closed at $390.97, but opened at $367.12. UBS Group currently has a buy rating on the stock. Trane Technologies shares last traded at $362.7310, with a volume of 462,873 shares.

A number of other brokerages also recently weighed in on TT. Weiss Ratings reissued a "buy (b)" rating on shares of Trane Technologies in a research note on Wednesday, October 8th. Wells Fargo & Company dropped their target price on shares of Trane Technologies from $415.00 to $375.00 and set an "underweight" rating on the stock in a research report on Friday, December 19th. Barclays lifted their price objective on Trane Technologies from $485.00 to $495.00 and gave the stock an "overweight" rating in a report on Friday, October 31st. JPMorgan Chase & Co. raised their price target on shares of Trane Technologies from $407.00 to $434.00 and gave the stock a "neutral" rating in a research note on Wednesday, October 15th. Finally, Bank of America raised Trane Technologies from a "neutral" rating to a "buy" rating and increased their target price for the stock from $490.00 to $550.00 in a report on Thursday, November 13th. Eight equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $467.80.

Insider Activity at Trane Technologies

In related news, CAO Elizabeth A. Elwell sold 600 shares of the business's stock in a transaction that occurred on Thursday, October 30th. The shares were sold at an average price of $440.00, for a total transaction of $264,000.00. Following the completion of the sale, the chief accounting officer directly owned 7,148 shares of the company's stock, valued at $3,145,120. The trade was a 7.74% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. 0.14% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of TT. Ethic Inc. grew its holdings in shares of Trane Technologies by 6.6% during the second quarter. Ethic Inc. now owns 26,836 shares of the company's stock worth $11,601,000 after purchasing an additional 1,672 shares in the last quarter. Triton Financial Group Inc purchased a new stake in Trane Technologies during the second quarter valued at about $1,273,000. OMNI 360 Wealth Inc. bought a new position in Trane Technologies during the 2nd quarter worth approximately $345,000. Illinois Municipal Retirement Fund raised its holdings in Trane Technologies by 2.7% in the 2nd quarter. Illinois Municipal Retirement Fund now owns 28,083 shares of the company's stock worth $12,284,000 after purchasing an additional 726 shares in the last quarter. Finally, Hibernia Wealth Partners LLC purchased a new stake in Trane Technologies during the 2nd quarter valued at about $266,000. 82.97% of the stock is currently owned by institutional investors.

Trane Technologies Stock Down 7.7%

The company has a market cap of $80.01 billion, a P/E ratio of 27.76, a P/E/G ratio of 2.02 and a beta of 1.21. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.20 and a quick ratio of 0.84. The company's 50-day moving average is $409.28 and its two-hundred day moving average is $420.24.

Trane Technologies (NYSE:TT - Get Free Report) last issued its earnings results on Thursday, October 30th. The company reported $3.88 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.80 by $0.08. The company had revenue of $5.74 billion for the quarter, compared to analysts' expectations of $5.80 billion. Trane Technologies had a net margin of 13.93% and a return on equity of 37.04%. The firm's quarterly revenue was up 5.5% on a year-over-year basis. During the same quarter last year, the company posted $3.37 earnings per share. Trane Technologies has set its FY 2025 guidance at 12.950-13.050 EPS. As a group, equities analysts predict that Trane Technologies plc will post 12.83 earnings per share for the current fiscal year.

Trane Technologies Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, December 31st. Shareholders of record on Friday, December 5th were paid a $0.94 dividend. This represents a $3.76 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend was Friday, December 5th. Trane Technologies's dividend payout ratio (DPR) is presently 28.92%.

About Trane Technologies

Trane Technologies NYSE: TT is a global climate solutions company focused on heating, ventilation and air conditioning (HVAC) and transport refrigeration systems. The company develops, manufactures and sells a broad range of climate-control products under well-known brands, including commercial and residential HVAC equipment, building management systems and controls, and transport refrigeration units. Its product portfolio spans rooftop and packaged units, chillers, furnaces, air handlers, compressors, and related components designed for commercial buildings, industrial facilities, residences and transportation applications.

In addition to equipment, Trane Technologies provides lifecycle services that include installation, maintenance, parts, retrofit and aftermarket support, as well as digital and controls solutions for building performance and energy management.

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