On May 11, 2023, Envestnet Asset Management Inc. released its latest disclosure with the Securities and Exchange Commission, detailing its increased stake in GATX Co. (NYSE:GATX) by 3.2% during the fourth quarter. The fund now owns 101,107 shares of the transportation company’s stock after acquiring an additional 3,133 shares in that period. At the end of the most recent quarter, Envestnet Asset Management owned a prosperous 0.29% of GATX worth $10,752,000.
GATX Corp., on the other hand, focuses on leasing and owning railcar fleets globally; it operates through three business segments—Rail North America, Rail International and Portfolio Management—with aims to provide railcars pursuant to full-service leases under which it maintains the fleet while offering other ancillary services as needed.
Recently, GATX announced that a quarterly dividend would be paid out on Friday, June 30th to shareholders of record by Thursday, June 15th. This payment will total $0.55 per share—a $2.20 yearly dividend with a yield rate of 1.97%. The ex-dividend date held before this deadline is set for Wednesday, June 14th.
As a transportation organization invested in global markets with top-rate services provided via full-service leases and maintenance provisions included therein for its customers’ satisfaction—alongside having steadily increasing shareholder value—GATX has shown reliable growth and stability throughout recent years with no signs of buckling down soon.
Institutional Investors & Hedge Funds Show Increased Confidence in GATX Co. with Growing Holdings
GATX Co., a transportation company with a market cap of $3.94 billion, has been subject to recent modifications in holdings by institutional investors and hedge funds. BlackRock Inc., one of the largest investment management firms in the world, increased its holdings in GATX by 0.6%, acquiring an additional 22,888 shares during the last quarter and now owning 4,088,581 shares in total worth $348,143,000. Another investment giant, Vanguard Group Inc., raised its position in GATX by 1.1% during the third quarter. Vanguard Group currently owns 3,794,147 shares of the transportation company’s stock valued at $323,071,000 after purchasing an additional 40,537 shares during the period.
Furthermore, Dimensional Fund Advisors LP raised their holdings by 1.0% during the same period and now owns 2,456,877 shares of GATX worth $209,210,000 after adding an extra 25,372 shares. State Street Corp also saw gains in its holdings as it boosted its position in the transport firm by 3.3% since Q3 to currently own 1,155,957 shares worth approximately $98,430,000. On top of this growth was Vaughan Nelson Investment Management L.P., who managed to increase their stake by a significant margin of 6.7%. The firm now holds 544045 shares valued at $46,326 million.
All these moves made hedge funds and other institutional investors come to collectively hold up to 99.10%q of GATX’s stocks implying increasing investor confidence in GATX’s performance which saw significant improvement from where they were standing just eight months ago when Bloomberg had reported that only two equities research analysts gave it a rating less than “Moderate Buy”.
After opening at $111.53 on Thursday, GATX’s 12-month low has been reported as $84.96 with a high of $118.11, while the stock’s price-earnings ratio is 25.35 and its beta is 1.05. As of July 2023, the company’s 50-day moving average price is $109.05 whereas its 200-day moving average is around the same at $109.24 with a current ratio and quick ratio both being stood at 2.05 while its debt-to-equity ratio was listed at 3.04.
Recent analyst reports on GATX have varied; however, most seem optimistic about its potential for growth going forward from this point on and Sidoti initiated coverage on shares of GATX in a research note back in March and they set a “buy” rating for the company from their observations indicating solid future prospects of the stock. Bloomberg also predicts that GATX is likely to see more positive investor outlooks in months ahead upon re-pricing through digital transformation and increased profitability prospects arising from ongoing investment ventures by industry giants in the transportation sector if the present interest hold continues among investors worldwide.
