Trinity Industries (NYSE:TRN) Shares Gap Down After Earnings Miss

Trinity Industries, Inc. (NYSE:TRN) gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $25.10, but opened at $24.09. Trinity Industries shares last traded at $24.05, with a volume of 56,947 shares.

The transportation company reported $0.29 EPS for the quarter, missing the consensus estimate of $0.33 by ($0.04). The company had revenue of $585.40 million during the quarter, compared to analysts’ expectations of $614.02 million. Trinity Industries had a return on equity of 11.78% and a net margin of 4.49%. Trinity Industries’s quarterly revenue was down 27.7% compared to the same quarter last year. During the same period last year, the firm posted $0.33 EPS.

Trinity Industries Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, April 30th. Stockholders of record on Tuesday, April 15th were given a dividend of $0.30 per share. The ex-dividend date was Tuesday, April 15th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 4.91%. Trinity Industries’s payout ratio is 73.17%.

Wall Street Analyst Weigh In

A number of brokerages recently commented on TRN. The Goldman Sachs Group dropped their price target on Trinity Industries from $36.00 to $31.00 and set a “neutral” rating for the company in a research note on Thursday, April 17th. Susquehanna lowered their target price on Trinity Industries from $35.00 to $24.00 and set a “neutral” rating for the company in a research report on Tuesday, April 22nd.

Insiders Place Their Bets

In other news, EVP Gregory B. Mitchell sold 9,286 shares of the stock in a transaction on Monday, March 3rd. The shares were sold at an average price of $31.02, for a total value of $288,051.72. Following the sale, the executive vice president now owns 111,879 shares of the company’s stock, valued at approximately $3,470,486.58. This represents a 7.66 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 2.00% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Trinity Industries

Several hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its stake in shares of Trinity Industries by 1.3% during the fourth quarter. Vanguard Group Inc. now owns 10,099,602 shares of the transportation company’s stock valued at $354,496,000 after buying an additional 126,139 shares during the last quarter. Capital International Investors boosted its holdings in Trinity Industries by 1.1% during the 4th quarter. Capital International Investors now owns 5,450,669 shares of the transportation company’s stock valued at $191,388,000 after acquiring an additional 61,901 shares during the period. Jennison Associates LLC grew its position in Trinity Industries by 0.5% in the 4th quarter. Jennison Associates LLC now owns 3,588,234 shares of the transportation company’s stock valued at $125,947,000 after acquiring an additional 18,851 shares during the last quarter. Wealthfront Advisers LLC purchased a new stake in Trinity Industries in the fourth quarter worth $104,136,000. Finally, American Century Companies Inc. lifted its position in shares of Trinity Industries by 25.6% during the fourth quarter. American Century Companies Inc. now owns 2,187,366 shares of the transportation company’s stock worth $76,777,000 after purchasing an additional 446,142 shares during the last quarter. 86.57% of the stock is currently owned by institutional investors.

Trinity Industries Price Performance

The stock’s 50 day moving average price is $27.53 and its 200-day moving average price is $33.30. The company has a quick ratio of 1.08, a current ratio of 1.80 and a debt-to-equity ratio of 4.35. The stock has a market capitalization of $2.00 billion, a PE ratio of 14.91 and a beta of 1.49.

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.