CAI International (CAI) Upgraded to Hold at Zacks Investment Research

Zacks Investment Research upgraded shares of CAI International (NYSE:CAI) from a strong sell rating to a hold rating in a report released on Friday morning.

According to Zacks, “CAI INTERNATIONAL, INC. is one of the world’s leading intermodal freight container leasing and management companies. Intermodal freight containers are large, standardized steel boxes, which CAI leases primarily to international steamship companies, and are used to transport cargo by a number of means, including ship, truck and rail. A portion of the container fleet is owned by CAI with the balance being owned by third parties on whose behalf CAI manages the containers. Accordingly, CAI operates its business through two segments: container leasing and container fleet management. Through its international network of offices and agents CAI also has developed an active after-market program for containers retired from the international shipping fleet. “

A number of other research firms have also commented on CAI. ValuEngine raised shares of CAI International from a strong sell rating to a sell rating in a research note on Thursday, August 23rd. Cowen reduced their price objective on shares of CAI International from $40.00 to $30.00 and set an outperform rating for the company in a research note on Wednesday. Keefe, Bruyette & Woods raised shares of CAI International from a market perform rating to an outperform rating in a research note on Thursday, September 6th. Finally, Wells Fargo & Co lowered shares of CAI International from an outperform rating to a market perform rating and set a $22.00 price objective for the company. in a research note on Friday, September 28th. One investment analyst has rated the stock with a sell rating, two have given a hold rating and four have given a buy rating to the stock. The company has a consensus rating of Hold and an average target price of $29.25.

CAI stock traded down $0.07 during mid-day trading on Friday, reaching $25.03. 196,142 shares of the stock traded hands, compared to its average volume of 199,150. The company has a current ratio of 0.48, a quick ratio of 0.48 and a debt-to-equity ratio of 2.93. CAI International has a 52-week low of $19.35 and a 52-week high of $36.98. The firm has a market capitalization of $483.23 million, a PE ratio of 8.72, a P/E/G ratio of 0.82 and a beta of 2.25.

CAI International (NYSE:CAI) last posted its quarterly earnings data on Tuesday, October 30th. The transportation company reported $1.03 EPS for the quarter, beating analysts’ consensus estimates of $0.97 by $0.06. CAI International had a net margin of 22.90% and a return on equity of 13.08%. The company had revenue of $115.40 million during the quarter, compared to analyst estimates of $112.40 million. During the same period in the prior year, the firm earned $0.90 earnings per share. The business’s quarterly revenue was up 27.9% on a year-over-year basis. On average, equities research analysts anticipate that CAI International will post 3.85 earnings per share for the current year.

CAI International announced that its board has initiated a share repurchase program on Monday, October 8th that authorizes the company to repurchase 3,000,000 shares. This repurchase authorization authorizes the transportation company to repurchase shares of its stock through open market purchases. Shares repurchase programs are typically a sign that the company’s board of directors believes its shares are undervalued.

Several hedge funds and other institutional investors have recently bought and sold shares of CAI. Scopus Asset Management L.P. purchased a new stake in shares of CAI International in the second quarter worth approximately $14,447,000. United Services Automobile Association lifted its position in shares of CAI International by 101.0% in the second quarter. United Services Automobile Association now owns 335,232 shares of the transportation company’s stock worth $45,290,000 after purchasing an additional 168,423 shares in the last quarter. Portolan Capital Management LLC purchased a new stake in shares of CAI International in the second quarter worth approximately $3,104,000. BlackRock Inc. lifted its position in shares of CAI International by 11.0% in the second quarter. BlackRock Inc. now owns 1,177,477 shares of the transportation company’s stock worth $27,365,000 after purchasing an additional 116,607 shares in the last quarter. Finally, Putnam Investments LLC purchased a new stake in shares of CAI International in the second quarter worth approximately $2,552,000. 87.73% of the stock is owned by institutional investors and hedge funds.

CAI International Company Profile

CAI International, Inc operates as transportation finance and logistics company in the United States and internationally. The company operates through three segments: Container Leasing, Rail Leasing, and Logistics. It leases, re-leases, and disposes equipment; and contracts for the repair, repositioning, and storage of equipment.

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