Trimas (TRS) has disclosed a new risk, in the Corporate Activity and Growth category.
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Trimas expects about $1.2 billion in after-tax cash from the planned sale of TriMas Aerospace, but there is significant execution risk around how those funds are deployed. Even with a Strategic Investment Committee in place, it may fail to find attractive transactions or investments, and debt covenants may further constrain capital allocation, potentially depressing returns, share price, and long-term performance.
Overall, Wall Street has a Moderate Buy consensus rating on TRS stock based on 1 Buy.
To learn more about Trimas’ risk factors, click here.