Trinity Industries (NYSE:TRN) Sets New 52-Week Low After Earnings Miss

Key Points

• Trinity Industries shares hit a new 52-week low of $22.38 after reporting quarterly earnings that missed analyst expectations, showing $0.19 EPS against a consensus estimate of $0.31.
• Revenue also fell significantly, totaling $506.20 million for the quarter—39.8% lower than the previous year's $839.90 million.
• The company announced a dividend of $0.30 per share, representing a 5.1% yield, despite a dividend payout ratio of 74.07%.

Trinity Industries, Inc. (NYSE:TRN - Get Free Report)'s stock price reached a new 52-week low during mid-day trading on Friday following a weaker than expected earnings announcement. The stock traded as low as $22.38 and last traded at $23.33, with a volume of 1606401 shares traded. The stock had previously closed at $24.98.

The transportation company reported $0.19 earnings per share for the quarter, missing the consensus estimate of $0.31 by ($0.12). Trinity Industries had a net margin of 3.83% and a return on equity of 8.49%. The firm had revenue of $506.20 million for the quarter, compared to the consensus estimate of $589.96 million. During the same period in the prior year, the business earned $0.66 EPS. The company's quarterly revenue was down 39.8% compared to the same quarter last year.

Trinity Industries Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, July 31st. Investors of record on Tuesday, July 15th were paid a dividend of $0.30 per share. The ex-dividend date of this dividend was Tuesday, July 15th. This represents a $1.20 annualized dividend and a yield of 4.9%. Trinity Industries's dividend payout ratio (DPR) is currently 105.26%.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on TRN shares. Wall Street Zen cut Trinity Industries from a "hold" rating to a "sell" rating in a research note on Saturday. The Goldman Sachs Group reduced their target price on Trinity Industries from $36.00 to $31.00 and set a "neutral" rating for the company in a report on Thursday, April 17th. Finally, Susquehanna reduced their target price on Trinity Industries from $26.00 to $24.00 and set a "neutral" rating for the company in a report on Tuesday, July 29th.

Institutional Investors Weigh In On Trinity Industries

Several hedge funds have recently modified their holdings of TRN. Strs Ohio purchased a new stake in shares of Trinity Industries during the first quarter valued at $25,000. GAMMA Investing LLC lifted its stake in Trinity Industries by 75.4% in the 2nd quarter. GAMMA Investing LLC now owns 1,114 shares of the transportation company's stock worth $30,000 after acquiring an additional 479 shares in the last quarter. Headlands Technologies LLC lifted its stake in Trinity Industries by 3,418.2% in the 1st quarter. Headlands Technologies LLC now owns 1,548 shares of the transportation company's stock worth $43,000 after acquiring an additional 1,504 shares in the last quarter. Trust Co. of Toledo NA OH purchased a new stake in Trinity Industries in the 2nd quarter worth about $43,000. Finally, Russell Investments Group Ltd. lifted its stake in Trinity Industries by 97.4% in the 1st quarter. Russell Investments Group Ltd. now owns 3,604 shares of the transportation company's stock worth $101,000 after acquiring an additional 1,778 shares in the last quarter. 86.57% of the stock is owned by hedge funds and other institutional investors.

Trinity Industries Stock Performance

The firm has a 50 day moving average of $26.52 and a 200-day moving average of $28.65. The stock has a market capitalization of $1.97 billion, a PE ratio of 21.40 and a beta of 1.49. The company has a debt-to-equity ratio of 4.66, a quick ratio of 1.01 and a current ratio of 1.96.

Trinity Industries Company Profile

Trinity Industries, Inc provides rail transportation products and services under the TrinityRail name in North America. It operates in two segments, Railcar Leasing and Management Services Group, and Rail Products Group. The Railcar Leasing and Management Services Group segment leases freight and tank railcars; originates and manages railcar leases for third-party investors; and provides fleet maintenance and management services.