Zacks Investment Research Downgrades American Railcar Industries (ARII) to Sell

Zacks Investment Research lowered shares of American Railcar Industries (NASDAQ:ARII) from a hold rating to a sell rating in a report issued on Friday.

According to Zacks, “American Railcar Industries, Inc. is a leading North American manufacturer of covered hopper and tank railcars. ARI also repairs and refurbishes railcars, provides fleet management services and designs and manufactures railcar and industrial components used in the production of its railcars as well as railcars and non-railcar industrial products produced by others. “

Other equities research analysts have also issued research reports about the stock. BidaskClub raised shares of American Railcar Industries from a buy rating to a strong-buy rating in a research report on Wednesday, September 12th. Buckingham Research increased their price objective on shares of American Railcar Industries from $42.00 to $70.00 and gave the stock a neutral rating in a research report on Wednesday, October 24th. Finally, ValuEngine raised shares of American Railcar Industries from a buy rating to a strong-buy rating in a research report on Monday, October 22nd. One investment analyst has rated the stock with a sell rating, three have issued a hold rating, two have assigned a buy rating and one has assigned a strong buy rating to the stock. The company has an average rating of Hold and an average target price of $49.75.

ARII stock traded down $0.06 on Friday, hitting $69.97. 193,813 shares of the company were exchanged, compared to its average volume of 162,823. American Railcar Industries has a twelve month low of $34.76 and a twelve month high of $70.50. The company has a debt-to-equity ratio of 0.74, a quick ratio of 1.74 and a current ratio of 2.61. The firm has a market capitalization of $1.34 billion, a price-to-earnings ratio of 31.52 and a beta of 1.13.

American Railcar Industries (NASDAQ:ARII) last issued its quarterly earnings results on Tuesday, October 30th. The transportation company reported $0.69 EPS for the quarter, topping the consensus estimate of $0.52 by $0.17. American Railcar Industries had a net margin of 29.71% and a return on equity of 6.32%. The firm had revenue of $100.00 million during the quarter, compared to analyst estimates of $98.67 million. During the same quarter in the prior year, the business posted $0.46 earnings per share. American Railcar Industries’s revenue for the quarter was down 17.2% compared to the same quarter last year. As a group, equities analysts forecast that American Railcar Industries will post 2.1 EPS for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 27th. Stockholders of record on Monday, December 17th will be given a $0.40 dividend. This represents a $1.60 annualized dividend and a dividend yield of 2.29%. The ex-dividend date of this dividend is Friday, December 14th. American Railcar Industries’s payout ratio is currently 87.43%.

Several institutional investors have recently added to or reduced their stakes in ARII. Legal & General Group Plc increased its position in shares of American Railcar Industries by 186.3% in the third quarter. Legal & General Group Plc now owns 3,424 shares of the transportation company’s stock worth $158,000 after acquiring an additional 2,228 shares in the last quarter. Gamco Investors INC. ET AL acquired a new stake in shares of American Railcar Industries in the third quarter worth $231,000. United Services Automobile Association acquired a new stake in shares of American Railcar Industries in the third quarter worth $234,000. Russell Investments Group Ltd. acquired a new stake in shares of American Railcar Industries in the third quarter worth $282,000. Finally, Man Group plc acquired a new stake in shares of American Railcar Industries in the third quarter worth $304,000. 91.65% of the stock is owned by institutional investors.

American Railcar Industries Company Profile

American Railcar Industries, Inc, together with its subsidiaries, designs and manufactures hopper and tank railcars in North America. It operates through three segments: Manufacturing, Railcar Leasing, and Railcar Services. The Manufacturing segment manufactures hopper railcars for shipping various dry bulk products, such as plastic pellets, as well as high-density products, including cement and sand; pressure tank railcars for transporting products comprising chlorine, anhydrous ammonia, liquid propane, and butane; and other types of railcars.

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