Trane Technologies (NYSE:TT) Shares Gap Down - Should You Sell?

Key Points

• Trane Technologies' share price gapped down significantly from $470.98 to $434.50, closing at $433.54 with a trading volume of 698,097 shares.
• Analysts are divided on the stock, with several upgrades to "buy" ratings and a consensus rating of "Moderate Buy," reflecting an average target price of $441.40.
• The company reported a 7.6% revenue increase year-over-year, with earnings per share of $3.88, surpassing expectations but falling slightly short of revenue forecasts.

Trane Technologies plc (NYSE:TT - Get Free Report) shares gapped down prior to trading on Wednesday . The stock had previously closed at $470.98, but opened at $434.50. Trane Technologies shares last traded at $433.54, with a volume of 698,097 shares changing hands.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the stock. UBS Group boosted their price target on shares of Trane Technologies from $470.00 to $500.00 and gave the company a "buy" rating in a report on Thursday, May 22nd. The Goldman Sachs Group raised their price target on Trane Technologies from $416.00 to $460.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 8th. Stephens raised Trane Technologies from an "equal weight" rating to an "overweight" rating and set a $475.00 price target on the stock in a research report on Thursday, May 1st. Barclays upped their price target on Trane Technologies from $480.00 to $495.00 and gave the company an "overweight" rating in a research report on Thursday. Finally, Royal Bank Of Canada lifted their price objective on Trane Technologies from $463.00 to $467.00 and gave the stock a "sector perform" rating in a research report on Thursday. One investment analyst has rated the stock with a sell rating, ten have assigned a hold rating and five have issued a buy rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $455.67.

Trane Technologies Stock Down 0.9%

The company has a market cap of $96.81 billion, a P/E ratio of 34.40, a P/E/G ratio of 2.78 and a beta of 1.15. The company has a quick ratio of 0.74, a current ratio of 1.10 and a debt-to-equity ratio of 0.50. The business's 50 day moving average is $435.26 and its 200 day moving average is $388.22.

Trane Technologies (NYSE:TT - Get Free Report) last posted its earnings results on Wednesday, July 30th. The company reported $3.88 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.79 by $0.09. The business had revenue of $5.75 billion for the quarter, compared to analyst estimates of $5.77 billion. Trane Technologies had a net margin of 13.76% and a return on equity of 36.61%. The company's revenue for the quarter was up 7.6% on a year-over-year basis. During the same period in the prior year, the company posted $3.30 EPS. As a group, equities analysts anticipate that Trane Technologies plc will post 12.83 earnings per share for the current fiscal year.

Trane Technologies Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 30th. Investors of record on Friday, September 5th will be issued a dividend of $0.94 per share. The ex-dividend date of this dividend is Friday, September 5th. This represents a $3.76 dividend on an annualized basis and a yield of 0.9%. Trane Technologies's payout ratio is currently 29.82%.

Hedge Funds Weigh In On Trane Technologies

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Ameriflex Group Inc. acquired a new position in Trane Technologies during the 2nd quarter valued at about $28,000. Minot DeBlois Advisors LLC bought a new position in shares of Trane Technologies in the fourth quarter valued at about $26,000. WFA Asset Management Corp lifted its holdings in Trane Technologies by 208.3% during the first quarter. WFA Asset Management Corp now owns 74 shares of the company's stock worth $25,000 after acquiring an additional 50 shares in the last quarter. Vermillion & White Wealth Management Group LLC acquired a new position in Trane Technologies during the 4th quarter worth approximately $28,000. Finally, Saudi Central Bank acquired a new stake in Trane Technologies during the 1st quarter valued at $30,000. Institutional investors and hedge funds own 82.97% of the company's stock.

About Trane Technologies

Trane Technologies plc, together with its subsidiaries, designs, manufactures, sells, and services of solutions for heating, ventilation, air conditioning, custom, and custom and transport refrigeration in Ireland and internationally. It offers air conditioners, exchangers, and handlers; airside and terminal devices; air sourced heat pumps, auxiliary power units; chillers; coils and condensers; gensets; dehumidifiers; ductless; furnaces; home automation products; humidifiers; indoor air quality assessments and related products; large and light commercial unitary products; refrigerant reclamation products; thermostats/controls; transport heater products; variable refrigerant flow products; and water source heat pumps.