GATX Co. (GATX) Upgraded to “Buy” by Zacks Investment Research

GATX Co. (NYSE:GATX) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Friday. The brokerage currently has a $67.00 target price on the transportation company’s stock. Zacks Investment Research’s target price points to a potential upside of 7.93% from the company’s previous close.

According to Zacks, “GATX Corporation performed well in the first quarter of 2017 with better-than-expected revenues and earnings. The company has an impressive history with respect to earnings per share, having outperformed the Zacks Consensus Estimate in each of the last four quarters. The company is expected to perform well with respect to the bottom line in the near future as well. These tailwinds are chiefly responsible for the stock outperforming the Zacks categorized Transportation-Equipment & Leasing industry in the last one year. We are also impressed by GATX Corporation's efforts to reward investors through share buybacks and dividend payments. However, both earnings as well as revenues declined in the first quarter, which raises concerns.”

A number of other equities analysts have also recently issued reports on the stock. Stifel Nicolaus cut shares of GATX from a “hold” rating to a “sell” rating and set a $49.00 target price on the stock. in a report on Thursday, January 12th. Axiom Securities reissued a “sell” rating and issued a $27.00 target price on shares of GATX in a report on Tuesday, January 24th. Finally, Cowen and Company started coverage on shares of GATX in a report on Friday, March 3rd. They issued a “market perform” rating and a $62.00 target price on the stock. Three equities research analysts have rated the stock with a sell rating, three have issued a hold rating and four have given a buy rating to the company. GATX currently has a consensus rating of “Hold” and a consensus price target of $50.00.

Analyst Recommendations for GATX (NYSE:GATX)

Shares of GATX (NYSE:GATX) opened at 62.27 on Friday. The stock has a market capitalization of $2.45 billion, a P/E ratio of 9.90 and a beta of 1.18. GATX has a one year low of $40.66 and a one year high of $64.46. The firm’s 50-day moving average price is $59.59 and its 200-day moving average price is $55.87.

GATX (NYSE:GATX) last issued its earnings results on Thursday, April 20th. The transportation company reported $1.44 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $1.08 by $0.36. GATX had a net margin of 18.13% and a return on equity of 19.97%. The firm had revenue of $316.10 million for the quarter, compared to analysts’ expectations of $312.24 million. The company’s quarterly revenue was down 5.5% compared to the same quarter last year. Equities research analysts anticipate that GATX will post $4.50 EPS for the current fiscal year.

The company also recently declared a quarterly dividend, which was paid on Friday, March 31st. Shareholders of record on Friday, March 10th were paid a $0.42 dividend. The ex-dividend date was Wednesday, March 8th. This represents a $1.68 annualized dividend and a dividend yield of 2.71%. This is a positive change from GATX’s previous quarterly dividend of $0.40. GATX’s dividend payout ratio (DPR) is presently 25.48%.

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In other GATX news, SVP Michael T. Brooks sold 3,653 shares of the firm’s stock in a transaction that occurred on Tuesday, January 24th. The shares were sold at an average price of $59.45, for a total value of $217,170.85. Following the sale, the senior vice president now owns 27,300 shares in the company, valued at $1,622,985. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Paul F. Titterton sold 2,571 shares of the firm’s stock in a transaction that occurred on Wednesday, January 25th. The shares were sold at an average price of $60.31, for a total transaction of $155,057.01. Following the completion of the sale, the senior vice president now owns 9,840 shares in the company, valued at approximately $593,450.40. The disclosure for this sale can be found here. Insiders sold 16,993 shares of company stock worth $995,795 in the last 90 days. 3.43% of the stock is owned by company insiders.

Several large investors have recently made changes to their positions in the stock. Tyers Asset Management LLC purchased a new stake in shares of GATX during the fourth quarter valued at approximately $107,000. Flinton Capital Management LLC purchased a new stake in shares of GATX during the fourth quarter valued at approximately $136,000. Bank of Montreal Can raised its stake in shares of GATX by 19.4% in the first quarter. Bank of Montreal Can now owns 2,525 shares of the transportation company’s stock valued at $154,000 after buying an additional 410 shares during the last quarter. Capstone Asset Management Co. purchased a new stake in shares of GATX during the first quarter valued at approximately $200,000. Finally, Raymond James Financial Services Advisors Inc. purchased a new stake in shares of GATX during the fourth quarter valued at approximately $202,000.

About GATX

GATX Corporation is a global railcar lessor, owning fleets in North America, Europe, and Asia. In addition, the Company operates fleet of the United States-flagged vessels on the Great Lakes and jointly with Rolls-Royce plc, it owns aircraft spare engine lease portfolios in the world. It operates through four business segments: Rail North America, Rail International, American Steamship Company (ASC), and Portfolio Management.

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