GATX (NYSE:GATX) Stock Jumps 7.8% on Earnings Beat

GATX Corporation (NYSE:GATX) traded up 7.8% during mid-day trading on Thursday following a stronger than expected earnings report. The stock traded as high as $183.84 and last traded at $182.0790. 126,714 shares changed hands during trading, a decline of 42% from the average session volume of 217,383 shares. The stock had previously closed at $168.87.

The transportation company reported $2.92 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.46 by $0.46. GATX had a return on equity of 10.43% and a net margin of 17.94%. The firm’s revenue for the quarter was up 36.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.25 earnings per share.

GATX Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th were paid a dividend of $0.66 per share. This represents a $2.64 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date was Tuesday, September 15th. GATX’s payout ratio is currently 26.14%.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on GATX shares. Citigroup raised their price target on shares of GATX from $215.00 to $216.00 and gave the stock a “buy” rating in a research report on Thursday, October 8th. Susquehanna upped their price objective on GATX from $218.00 to $220.00 and gave the stock a “positive” rating in a research note on Friday, July 31st. Finally, Weiss Ratings cut GATX from a “buy (b)” rating to a “buy (b-)” rating in a research note on Wednesday, October 21st. Four investment analysts have rated the stock with a Buy rating. According to data from MarketBeat.com, the stock presently has an average rating of “Buy” and an average price target of $219.33.

Insider Activity at GATX

In other GATX news, SVP Eren Doygun sold 1,000 shares of the firm’s stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $179.52, for a total transaction of $179,520.00. Following the transaction, the senior vice president owned 5,323 shares of the company’s stock, valued at approximately $955,584.96. This trade represents a 15.82% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Geoffrey Phillips sold 2,500 shares of the company’s stock in a transaction that occurred on Friday, September 11th. The stock was sold at an average price of $177.60, for a total transaction of $444,000.00. Following the completion of the sale, the vice president directly owned 1 shares of the company’s stock, valued at approximately $177.60. This represents a 99.96% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 21,700 shares of company stock worth $3,900,976 in the last 90 days. Corporate insiders own 1.86% of the company’s stock.

Hedge Funds Weigh In On GATX

A number of institutional investors have recently bought and sold shares of the stock. BlackRock Inc. acquired a new position in GATX in the second quarter worth about $823,055,000. Bank of America Corp DE bought a new stake in shares of GATX during the 2nd quarter valued at $178,042,000. Bank of New York Mellon Corp acquired a new position in shares of GATX during the 2nd quarter worth about $51,178,000. Jupiter Topco LLC bought a new position in shares of GATX during the second quarter worth $25,363,000. Finally, Walleye Capital LLC acquired a new stake in shares of GATX during the second quarter worth about $21,691,000. Hedge funds and other institutional investors own 93.14% of the company’s stock.

GATX Price Performance

The company has a market cap of $6.41 billion, a P/E ratio of 18.05 and a beta of 1.19. The company’s 50-day moving average price is $173.50 and its 200-day moving average price is $178.82. The company has a debt-to-equity ratio of 3.44, a current ratio of 3.90 and a quick ratio of 3.90.

About GATX

GATX Corporation is a global asset-leasing company focused primarily on rail transportation. Through its rail businesses, the company owns, leases and manages a diverse fleet of freight railcars used to transport commodities and manufactured goods, including tank cars, covered and open hoppers, boxcars and specialized rail equipment. GATX also provides fleet management, maintenance and other services that support railcar customers.

GATX serves customers across North America and Europe through operations that include GATX Rail North America and GATX Rail Europe.