CAI International (CAI) Trading 21.6% Higher Following Better-Than-Expected Earnings

CAI International Inc (NYSE:CAI) shares traded up 21.6% on Wednesday following a better than expected earnings announcement. The company traded as high as $25.58 and last traded at $24.91. 592,224 shares were traded during trading, an increase of 151% from the average session volume of 235,498 shares. The stock had previously closed at $20.48.

The transportation company reported $1.03 EPS for the quarter, beating the consensus estimate of $0.97 by $0.06. CAI International had a return on equity of 13.16% and a net margin of 23.77%. The company had revenue of $115.40 million for the quarter, compared to analysts’ expectations of $112.40 million. During the same period last year, the firm posted $0.90 earnings per share. CAI International’s revenue was up 27.9% compared to the same quarter last year.

CAI International announced that its board has approved a stock repurchase plan on Monday, October 8th that allows the company to buyback 3,000,000 outstanding shares. This buyback authorization allows the transportation company to purchase shares of its stock through open market purchases. Shares buyback plans are usually a sign that the company’s board of directors believes its stock is undervalued.

CAI has been the topic of several recent analyst reports. ValuEngine cut CAI International from a “sell” rating to a “strong sell” rating in a research report on Monday, July 16th. Zacks Investment Research cut CAI International from a “hold” rating to a “sell” rating in a research report on Thursday, July 26th. Keefe, Bruyette & Woods raised CAI International from a “market perform” rating to an “outperform” rating in a research report on Thursday, September 6th. Finally, Wells Fargo & Co cut CAI International from an “outperform” rating to a “market perform” rating and set a $22.00 price objective on the stock. in a research report on Friday, September 28th. One investment analyst has rated the stock with a sell rating, two have issued a hold rating and four have issued a buy rating to the stock. The company presently has a consensus rating of “Hold” and an average price target of $28.75.

Several institutional investors have recently added to or reduced their stakes in CAI. Scopus Asset Management L.P. purchased a new stake in shares of CAI International during the second quarter valued at $14,447,000. United Services Automobile Association boosted its position in shares of CAI International by 101.0% during the second quarter. United Services Automobile Association now owns 335,232 shares of the transportation company’s stock valued at $45,290,000 after buying an additional 168,423 shares during the last quarter. Portolan Capital Management LLC purchased a new stake in shares of CAI International during the second quarter valued at $3,104,000. BlackRock Inc. boosted its position in shares of CAI International by 11.0% during the second quarter. BlackRock Inc. now owns 1,177,477 shares of the transportation company’s stock valued at $27,365,000 after buying an additional 116,607 shares during the last quarter. Finally, Putnam Investments LLC purchased a new stake in shares of CAI International during the second quarter valued at $2,552,000. 87.73% of the stock is currently owned by institutional investors.

The stock has a market capitalization of $389.41 million, a PE ratio of 8.68, a PEG ratio of 0.67 and a beta of 2.56. The company has a quick ratio of 0.48, a current ratio of 0.48 and a debt-to-equity ratio of 2.93.

About CAI International (NYSE:CAI)

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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