Trane Technologies plc (NYSE: TT) has received an average recommendation of “Hold” from analysts, with a consensus twelve-month price target set at approximately $472.07, according to MarketBeat Ratings. This target reflects insights from seventeen analysts covering the firm, among which one has issued a sell rating, nine have assigned a hold rating, and seven have given a buy rating.
Recent research reports have influenced these recommendations. On October 31, 2023, the Royal Bank of Canada raised its price objective for Trane Technologies from $467.00 to $469.00, maintaining a “sector perform” rating. Meanwhile, Wells Fargo & Company adjusted its target from $410.00 to $415.00, designating the stock as “underweight” in a report published on October 6, 2023.
Citigroup took a more optimistic stance, increasing its price objective from $494.00 to $513.00 and assigning a “buy” rating on the same day as Royal Bank of Canada. Morgan Stanley also raised its target from $445.00 to $520.00, declaring an “overweight” rating on July 31, 2023. Bank of America upgraded Trane Technologies from “neutral” to “buy,” lifting its price target from $490.00 to $550.00 in a report dated November 13, 2023.
Financial Performance and Guidance
Trane Technologies reported its earnings on October 30, 2023, revealing earnings per share (EPS) of $3.88 for the quarter, surpassing analysts’ expectations of $3.80 by $0.08. The firm achieved a return on equity of 36.61% and a net margin of 13.76%. Revenue for the quarter amounted to $5.74 billion, slightly below analyst estimates of $5.80 billion, although it represented a 5.5% increase year-over-year.
For the fiscal year 2025, Trane Technologies has provided guidance of $12.950 to $13.050 EPS. Analysts predict that the company will report EPS of $12.83 for the current year.
Dividends and Insider Transactions
The company has also declared a quarterly dividend of $0.94, which will be paid on December 31, 2023, to shareholders on record as of December 5, 2023. This translates to an annualized dividend of $3.76, yielding approximately 0.9%. Currently, Trane Technologies has a payout ratio of 28.92%.
In insider trading news, CEO David S. Regnery sold 22,497 shares of the company on September 2, 2023, at an average price of $410.00, totaling $9,223,770.00. Following this transaction, Regnery retains 123,713 shares, valued at $50,722,330, reflecting a 15.39% decrease in his ownership stake. Additionally, Chief Accounting Officer Elizabeth A. Elwell sold 600 shares on October 30, 2023, for a total of $264,000.00.
Institutional Holdings
Trane Technologies has seen recent changes in institutional holdings. For instance, Ethic Inc. increased its stake by 6.6% in the second quarter, now owning 26,836 shares valued at $11,601,000. Other significant transactions include Triton Financial Group acquiring a new stake valued at approximately $1,273,000 and Jones Financial Companies increasing its holdings by 350.3%, now owning 21,191 shares valued at $7,140,000.
Currently, institutional investors and hedge funds collectively hold 82.97% of Trane Technologies’ stock. The company, known for its comprehensive solutions in heating, ventilation, and air conditioning, continues to attract interest from various investment entities, reflecting its strong market position and growth potential.
