Why Should You Put Trinity Industries Inc. (NYSE: TRN) On Your Portfolio?


    ValueAct Capital Management LP recently announced the acquisition of new stake in Trinity Industries Inc. (NYSE:TRN). The institutional investor has increased its shareholding in the Industrials company by 8.50% to 27.01 million shares with purchase of 2.12 million shares. This fresh investment now brings its stake to 22.92% valued currently at $574.95 million. In addition, The Vanguard Group, Inc. raised its holdings by 0.19 million to 8.67 million shares. And Dimensional Fund Advisors LP has lifted its position by 4.90% or 0.31 million shares – to 6.63 million shares.

    With over 0.96 million Trinity Industries Inc. (TRN) shares trading Wednesday and a closing price of $21.86 on the day, the dollar volume was approximately $20.93 million. The shares have shown a positive weekly performance of 6.58% and its price on 07/15/20 gained nearly 3.02%. Currently, there are 118.00M common shares owned by the public and among those 115.52M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 5 analysts who have offered their price forecasts for TRN have a consensus price objective of $19.75. The analysts have set the share’s price value over the next 12 months at a high of $24.00 and a low of $17.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Trinity Industries Inc. stock is 3.20 for the next 12 months. The average price target is -30.12% below its last price level and a downside to the estimated low will see the stock lose -28.59% over that period. But an upside of 8.92% will see the stock hit the forecast high price target while mean target price for the stock is $19.00.

    Insiders at the company have transacted a total of 59 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 50 of these insider trades were purchases, accounting for 5,229,047 shares. Insider sales of the common stock occurred on 9 occasions, with total insider shares sold totaling 54,454 shares.

    The top 3 mutual fund holders in Trinity Industries Inc. are Vanguard Total Stock Market Index, iShares Core S&P Mid Cap ETF, and Vanguard Small Cap Index Fund. Vanguard Total Stock Market Index owns 2.62 million shares of the company’s stock, all valued at over $55.76 million. The company sold 42290.0 shares recently to bring their total holdings to about 2.22% of the shares outstanding. Vanguard Small Cap Index Fund sold 14700.0 shares to bring its total holdings to over 2.38 million shares at a value of $50.71 million. Vanguard Small Cap Index Fund now owns shares totaling to 2.02% of the shares outstanding.

    Shares of Trinity Industries Inc. (NYSE: TRN) opened at $21.79, up $0.57 from a prior closing price of $21.22. However, the script later closed the day at $21.86, up 3.02%. The company’s stock has a 5-day price change of 6.58% and 38.27% over the past three months. TRN shares are trading -1.31% year to date (YTD), with the 12-month market performance up to 8.06% higher. It has a 12-month low price of $14.53 and touched a high of $24.64 over the same period. Currently, 0.96 million shares have been traded, compared to an average intraday trading volume of 1.19 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 2.93%, 5.87%, and 9.75% respectively.

    Institutional ownership of Trinity Industries Inc. (NYSE: TRN) shares accounts for 98.40% of the company’s 118.00M shares outstanding. Mutual fund holders own 38.71%, while other institutional holders and individual stakeholders account for 63.73% and 34.02% respectively.

    It has a market capitalization of $2.49B and a beta (3y monthly) value of 1.69. The stock’s trailing 12-month PE ratio is 24.29, while the earnings-per-share (ttm) stands at $0.90. The company has a PEG of 2.43 and the debt-to-equity ratio at 2.30. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.75% over the week and 3.63% over the month.

    Analysts forecast that Trinity Industries Inc. (TRN) will achieve an EPS of $0.1 for the current quarter, $0.1 for the next quarter and $0.63 for 2021. The lowest estimate earnings-per-share for the quarter is $0.07 while analysts give the company a high EPS estimate of $0.19. Comparatively, EPS for the current quarter was $0.29 a year ago. Earnings per share for the fiscal year are expected to increase by 64.50%, and 41.44% over the next financial year. EPS should grow at an annualized rate of 10.00% over the next five years, compared to -23.60% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 5 brokerage firm advisors rate Trinity Industries Inc. (TRN) as a “Hold” at a consensus score of 3.20. Specifically, 1 Wall Street analysts polled rate the stock as a buy, while 3 of the 5 advise that investors “hold,” and 1 rated it as a “Sell.”

    Looking at the support for the TRN, a number of firms have released research notes about the stock. Wells Fargo stated their Underweight rating for the stock in a research note on January 14, 2020, with the firm’s price target at $22. Susquehanna coverage for the Trinity Industries Inc. (TRN) stock in a research note released on November 08, 2019 offered a Neutral rating with a price target of $22. Cowen was of a view on October 25, 2019 that the stock is Outperform, while Buckingham Research gave the stock Neutral rating on March 22, 2019, issuing a price target of $32- $26. KeyBanc Capital Markets on their part issued Sector Weight rating on March 11, 2019.


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