TriMas (NASDAQ:TRS) Shares Gap Up After Better-Than-Expected Earnings

Key Points

• TriMas Corporation's shares saw a significant increase, opening at $36.47 after reporting $0.61 EPS for the quarter, exceeding analyst expectations of $0.50.
• The company also announced a quarterly dividend of $0.04 per share, which results in an annualized yield of 0.47%.
• Increased insider buying was noted, with Director Shawn Sedaghat purchasing 410,172 shares, raising their ownership by 29.28% in the company.

TriMas Corporation (NASDAQ:TRS - Get Free Report) shares gapped up prior to trading on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $31.48, but opened at $36.47. TriMas shares last traded at $35.05, with a volume of 125,737 shares traded.

The industrial products company reported $0.61 earnings per share for the quarter, beating analysts' consensus estimates of $0.50 by $0.11. TriMas had a return on equity of 11.65% and a net margin of 3.83%. The business had revenue of $274.76 million for the quarter, compared to analyst estimates of $251.18 million. During the same period in the prior year, the company earned $0.43 earnings per share. The company's revenue was up 14.2% on a year-over-year basis.

TriMas Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, August 12th. Investors of record on Tuesday, August 5th will be given a dividend of $0.04 per share. The ex-dividend date is Tuesday, August 5th. This represents a $0.16 dividend on an annualized basis and a yield of 0.45%. TriMas's dividend payout ratio is presently 20.78%.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on TRS shares. BWS Financial increased their price target on TriMas from $40.00 to $45.00 and gave the stock a "buy" rating in a research report on Wednesday. Wall Street Zen upgraded TriMas from a "hold" rating to a "buy" rating in a research note on Sunday, June 1st.

Insider Buying and Selling

In other TriMas news, Director Adrianne Shapira purchased 4,000 shares of the stock in a transaction on Thursday, June 5th. The shares were bought at an average price of $25.82 per share, for a total transaction of $103,280.00. Following the completion of the transaction, the director owned 8,476 shares of the company's stock, valued at $218,850.32. This trade represents a 89.37% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, Director Shawn Sedaghat acquired 72,937 shares of the company's stock in a transaction on Thursday, May 22nd. The stock was acquired at an average cost of $26.16 per share, for a total transaction of $1,908,031.92. Following the completion of the acquisition, the director owned 1,883,758 shares of the company's stock, valued at $49,279,109.28. This trade represents a 4.03% increase in their position. The disclosure for this purchase can be found here. Insiders have bought a total of 848,261 shares of company stock worth $21,645,007 in the last ninety days. Corporate insiders own 14.20% of the company's stock.

Hedge Funds Weigh In On TriMas

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Ethic Inc. increased its position in shares of TriMas by 28.5% during the second quarter. Ethic Inc. now owns 13,598 shares of the industrial products company's stock worth $386,000 after purchasing an additional 3,015 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in TriMas in the 2nd quarter valued at $1,026,000. Pzena Investment Management LLC boosted its stake in TriMas by 2.0% during the 2nd quarter. Pzena Investment Management LLC now owns 2,177,761 shares of the industrial products company's stock worth $62,306,000 after purchasing an additional 42,207 shares during the last quarter. Apexium Financial LP acquired a new stake in TriMas during the 2nd quarter worth $243,000. Finally, Jane Street Group LLC purchased a new stake in shares of TriMas during the first quarter worth $868,000. 99.42% of the stock is owned by hedge funds and other institutional investors.

TriMas Price Performance

The stock's 50-day moving average price is $28.55 and its 200 day moving average price is $25.11. The company has a quick ratio of 1.49, a current ratio of 2.82 and a debt-to-equity ratio of 0.63. The firm has a market capitalization of $1.45 billion, a price-to-earnings ratio of 39.23 and a beta of 0.63.

TriMas Company Profile

TriMas Corporation engages in the design, development, manufacture, and sale of products for consumer products, aerospace, and industrial markets worldwide. The company operates through Packaging, Aerospace, and Specialty Products segments. The Packaging segment offers dispensing products, such as foaming and sanitizer pumps, lotion and hand soap pumps, beverage dispensers, perfume sprayers, and nasal and trigger sprayers; polymeric and steel caps and closures comprising food lids, flip-top and beverage closures, child resistance caps, drum and pail closures, and flexible spouts; polymeric jar products; integrated dispensers; bag-in-box products; and consumable vascular delivery and diagnostic test components under the Rieke, Taplast, Affaba & Ferrari, Intertech, Omega, and Rapak brands.