Trinity Industries (TRN - Free Report) has completed the previously announced sale of its highway products business to Rush Hour Intermediate II, LLC, an entity owned by Monomoy Capital Partners’ investment fund. The transaction was valued at $375 million in cash, subject to some adjustments at closing and other items.
The divestiture allows Trinity to focus on its core rail-related business and optimize capital structure to meet long-term goals. The company will report results of the highway products business, including gain on the sale, as part of its discontinued operations, from fourth-quarter 2021 onward.
Trinity is returning a significant portion of the sale proceeds to its shareholders. The company plans to repurchase $250 million of its penny par value common stock, representing 8.78 million shares, from ValueAct Capital Master Fund, L.P. The shares will be repurchased at a price of $28.49 per share.
This share repurchase will not reduce the amount authorized under Trinity’s existing $250-million share repurchase program, approved by the board in September 2021.
Trinity also plans to enter into an accelerated Accelerated Share Repurchase ("ASR") program with JPMorgan Chase Bank, National Association to repurchase shares worth $125 million under the existing program. The ASR program commences on Jan 3, 2022 and runs through the third quarter of 2022.
Zacks Rank & Other Key Picks
Trinity carries a Zacks Rank #2 (Buy). Some other top-ranked stocks within the broader Transportation sector are as follows:
ArcBest Corporation (ARCB - Free Report) flaunts a Zacks Rank #1 (Strong Buy). The company has a stellar earnings surprise history. It has outperformed the Zacks Consensus Estimate for earnings in each of the preceding four quarters, the average surprise being 27.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of ArcBest have surged more than 100% in a year.
Textainer Group Holdings also sports a Zacks Rank #1. The company’s earnings have trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 33.1%.
Shares of Textainer Group have rallied more than 93% in a year’s time.
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Trinity Industries (TRN - Free Report) has completed the previously announced sale of its highway products business to Rush Hour Intermediate II, LLC, an entity owned by Monomoy Capital Partners’ investment fund. The transaction was valued at $375 million in cash, subject to some adjustments at closing and other items.
The divestiture allows Trinity to focus on its core rail-related business and optimize capital structure to meet long-term goals. The company will report results of the highway products business, including gain on the sale, as part of its discontinued operations, from fourth-quarter 2021 onward.
Trinity is returning a significant portion of the sale proceeds to its shareholders. The company plans to repurchase $250 million of its penny par value common stock, representing 8.78 million shares, from ValueAct Capital Master Fund, L.P. The shares will be repurchased at a price of $28.49 per share.
This share repurchase will not reduce the amount authorized under Trinity’s existing $250-million share repurchase program, approved by the board in September 2021.
Trinity also plans to enter into an accelerated Accelerated Share Repurchase ("ASR") program with JPMorgan Chase Bank, National Association to repurchase shares worth $125 million under the existing program. The ASR program commences on Jan 3, 2022 and runs through the third quarter of 2022.
Zacks Rank & Other Key Picks
Trinity carries a Zacks Rank #2 (Buy). Some other top-ranked stocks within the broader Transportation sector are as follows:
ArcBest Corporation (ARCB - Free Report) flaunts a Zacks Rank #1 (Strong Buy). The company has a stellar earnings surprise history. It has outperformed the Zacks Consensus Estimate for earnings in each of the preceding four quarters, the average surprise being 27.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of ArcBest have surged more than 100% in a year.
Textainer Group Holdings also sports a Zacks Rank #1. The company’s earnings have trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 33.1%.
Shares of Textainer Group have rallied more than 93% in a year’s time.
Just Released: Zacks Top 10 Stocks for 2024
Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>
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