Is Trinity Industries Inc. (TRN) Stock Cheap Or Risky?

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As of Wednesday close, Trinity Industries Inc.’s (NYSE:TRN) stock was down -$0.1, moving down -0.33 percent to $30.49. The average number of shares traded per day over the past five days has been 283,500 shares. 4 times new highs have been achieved over the past 5 days, with a $0.71 gain in that time frame. In the last twenty days, the average volume was 494,500, while in the previous 50 days, it was 608,434.

Since last month, TRN stock rose 24.04%. Shares of the company fell to $23.06 on 10/25/22, the lowest level in the past month. A 52-week high of $35.35 was reached on 03/25/22 after having rallying from a 52-week low of $20.94. Since the beginning of this year, TRN’s stock price has risen by 0.96% or $0.29, and marked a new high 10 times. However, the stock has declined by -13.75% since its 52-week high.


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TRN stock investors should be aware that Trinity Industries Inc. (TRN) stock had its last reported insider trading activity 245 days ago on Mar 24. Madison Brian D, the EVP Services Operations of the company, disposed of 6,000 shares for $34.19 on Mar 24. It resulted in a $205,140 divestment by the insider. ValueAct Holdings, L.P. sold 3,780,000 shares at an average price of $28.45 on Feb 22. The insider now owns 90,847 shares following the transaction.

Valuation Metrics

Right now, Trinity Industries Inc. (TRN) has a P/E ratio of about 60.26. The stock’s beta is 1.39. Besides these, the trailing price-to-sales (P/S) ratio of 1.54, the price-to-book (PB) ratio of 2.48, and the price-to-cash flow ratio of 238.46 may also be considered.

The latest dividend of $0.23 per share was paid out, remained unchanged from last year’s $0.23. On Friday December 10 2021, a $0.02 dividend increase was announced.

Financial Health

According to company report, the long-term debt-to-equity ratio for the quarter ending September 29 was 5.46, and the total debt-to-equity ratio was 5.46. On the profitability front, the trailing twelve-month gross margin is 18.50% percent. In the year ended September 29, operating margins totaled 15.80%. Based on annual data, TRN earned $256.8 million in gross profit and brought in $1.52 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 3.70%. Return on equity (ROE) for the past 12 months was 16.00%.

In Trinity Industries Inc.’s quarter-end financial report for September 29, it reported total debt of $5.03 billion. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. TRN’s revenue fell -1.39% to $416.8 million during the quarter, while net income inched up to $496.6 million. While analysts expected Trinity Industries Inc. to report $0.33 quarterly earnings, the actual figure was $0.34 per share, beating the consensus estimate by 3.00%. During the quarter, the company generated $162.5 million in EBITDA. The liabilities of Trinity Industries Inc. were 7.34 billion at the end of its most recent quarter ended September 29, and its total debt was $5.61 billion. The value of shareholders’ equity is $81.4 million.

Technical Picture

This quick technical analysis looks at Trinity Industries Inc.’s (TRN) price momentum. With a historical volatility rate of 15.18%, the RSI 9-day stood at 68.07% on 23 November.

With respect to its five-day moving average, the current Trinity Industries Inc. price is up by +2.38% percent or $0.71. At present, TRN shares trade +21.14% above its 20-day simple moving average and +31.71% percent above its 100-day simple moving average. However, the stock is currently trading approximately +28.43% above its SMA50 and +1.84% above its SMA200.

Stochastic coefficient K was 88.29% and Stochastic coefficient D was 81.58%, while ATR was 0.93. Given the Stochastic reading of 88.34% for the 14-day period, the RSI (14) reading has been calculated as 67.03%. As of today, the MACD Oscillator reading stands at 0.36, while the 14-day reading stands at 0.66.

Analyst Ratings

Trinity Industries Inc. downgraded its rating on Trinity Industries Inc. (NYSE: TRN) to a Neutral in a note to investors on November 07, 2022. The analysts firm previously had a Positive rating on the stock.Trinity Industries Inc. (TRN) has been rated Overweight by analysts. According to 0 brokerage firms, TRN is a sell, and 3 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate Trinity Industries Inc. stock as buy, with 2 recommending it as overweight.

With a median target price of $30.50, the current consensus forecast for the stock is $27.00 – $36.00. Based on these forecasts, analysts predict Trinity Industries Inc. (TRN) will achieve an average price target of $31.00.

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