Notable Stock to Watch: Genesee & Wyoming Inc. (NYSE:GWR)

Genesee & Wyoming Inc. (NYSE:GWR) changed 0.28% to recent value of $109.16. The stock transacted 2943700 shares during most recent day however it has an average volume of 639.5K shares. It spotted trading 0.15% off 52-week high price. On the other end, the stock has been noted 59.89% away from the low price over the last 52-weeks.

Genesee & Wyoming Inc. (NYSE:GWR), together with Brookfield Infrastructure (NYSE: BIP; TSX: BIP.UN), GIC and Brookfield Infrastructure’s institutional partners (together referred to as the “Consortium”), are announcing an agreement pursuant to which affiliates of Brookfield Infrastructure and GIC will acquire G&W in a transaction valued at approximately $8.4 billion including debt (the “Transaction”). The Transaction will result in G&W becoming a privately held company. Under the new ownership, G&W will continue to focus on world class safety and outstanding service, while pursuing the company’s strategic goals.

G&W owns a portfolio of 120 short line railroads, predominantly in North America, with operations in Europe and Australia. Through its subsidiaries worldwide, the business provides essential transportation infrastructure services over more than 26,000 kilometers of track, providing access to its well-diversified customer base.  

“We believe this transaction is an excellent outcome for all G&W stakeholders,” said Jack Hellmann, G&W Chairman and Chief Executive Officer. “For our current stockholders, the sale price realizes significant value and represents a 39.5% premium to our March 8th share price. And for long-term investors who have owned our shares for the past two decades, the sale price represents a return of more than 5,400%.”

 GWR has a gross margin of 70.90% and an operating margin of 17.90% while its profit margin remained 8.90% for the last 12 months. Its earnings per share (EPS) expected to touch remained 43.10% for this year while earning per share for the next 5-years is expected to reach at 13.30%.

 The company has 56.12M of outstanding shares and 55.28M shares were floated in the market. According to the most recent quarter its current ratio was 1.2 that represents company’s ability to meet its current financial obligations. The price moved ahead of 11.75% from the mean of 20 days, 18.28% from mean of 50 days SMA and performed 28.91% from mean of 200 days price. Company’s performance for the week was 11.86%, 16.03% for month and YTD performance remained 47.47%.

Leave a Reply

Your email address will not be published. Required fields are marked *