Trane Technologies plc (NYSE: TT) stock fell -2.82% on Friday to $147.65 against a previous-day closing price of $151.93. With 1.27 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.41 million shares. During the session, the Specialty Industrial Machinery company that operates in wider Industrials sector, reached to the highest price of $151.82 whereas the lowest price it dropped to was $147.59. The 52-week range on TT shows that it touched its highest point at $204.23 and its lowest point at $120.64 during that stretch. It currently has a 1-year price target of $163.29. With its current market cap of 34.99 billion, TT has annualized dividend of $2.68 while the current yield stands at 1.82%. Beta for the stock currently stands at 1.05.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of TT was down-trending over the past week, with a drop of -7.27%, but this was down by -6.47% over a month. Three-month performance surged to 15.79% while six-month performance fell -3.43%. The stock lost -19.04% in the past year, while it has lost -26.92% so far this year. A look at the trailing 12-month EPS for TT yields 6.38 with Next year EPS estimates of 7.82. For the next quarter, that number is 2.11. This implies an EPS growth rate of 48.30% for this year and 10.14% for next year. EPS is expected to grow by 13.30% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 1.60%.
Float and Shares Shorts:
At present, 233.80 million TT shares are outstanding with a float of 206.24 million shares on hand for trading. On Jul 14, 2022, short shares totaled 2.04 million, which was 0.87% higher than short shares on Jun 14, 2022. In addition to Mr. David S. Regnery as the firm’s Chairman & CEO, Mr. Christopher J. Kuehn serves as its Exec. VP & CFO.
Through their ownership of 86.39% of TT’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 54.34% of TT, in contrast to 30.56% held by mutual funds. Shares owned by individuals account for 0.55%. As the largest shareholder in TT with 7.54% of the stake, The Vanguard Group, Inc. holds 17,474,970 shares worth 17,474,970. A second-largest stockholder of TT, JPMorgan Investment Management, I, holds 15,307,974 shares, controlling over 6.61% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in TT, holding 11,822,886 shares or 5.10% stake. With a 2.99% stake in TT, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 6,922,449 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.25% of TT stock, is the second-largest Mutual Fund holder. It holds 5,218,384 shares valued at 804.0 million. Vanguard Wellington Fund holds 1.95% of the stake in TT, owning 4,518,426 shares worth 696.15 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for TT since 25 analysts follow the stock currently. There are 7 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 14 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With TT analysts setting a high price target of $212.00 and a low target of $116.00, the average target price over the next 12 months is $162.30. Based on these targets, TT could surge 43.58% to reach the target high and fall by -21.44% to reach the target low. Reaching the average price target will result in a growth of 9.92% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. TT will report FY 2022 earnings on 02/01/2023. Analysts have provided yearly estimates in a range of $7.15 being high and $7.00 being low. For TT, this leads to a yearly average estimate of $7.10. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Trane Technologies plc surprised analysts by $0.06 when it reported $2.16 EPS against a consensus estimate of $2.10. The surprise factor in the prior quarter was $0.13. Based on analyst estimates, the high estimate for the next quarter is $2.16 and the low estimate is $2.06. The average estimate for the next quarter is thus $2.11.
Summary of Insider Activity:
Insiders traded TT stock several times over the past three months with 0 Buys and 2 Sells. In these transactions, 0 shares were bought while 1,714 shares were sold. The number of buy transactions has increased to 35 while that of sell transactions has risen to 66 over the past year. The total number of shares bought during that period was 234,990 while 183,230 shares were sold.