Ryder System (R) Upgraded to “Hold” by Zacks Investment Research
Zacks Investment Research upgraded shares of Ryder System (NYSE:R) from a sell rating to a hold rating in a research note released on Tuesday morning.
According to Zacks, “Shares of Ryder have outperformed the industry it belongs to in the last six months. The stock gained 18.2%, whille the industry appreciated 12.6%. We are encouraged by the company's efforts to reward its shareholders through dividend payments. In 2017, Ryder System hiked its quarterly cash dividend by 2 cents to 46 cents per share. The company's efforts to grow its lease fleet pleases us. Its strong customer base is also a positive. However, a weak rental demand market has been hurting the company for quite some time. The company's high debt levels ansd escalating operating expenses are concerning as well. The company expects fourth quarter 2017 adjusted earnings per share in the band of $1.31 to $1.41, much below the fourth quarter 2016 figure. Moreover, earnings per share for full-year 2017 are expected to contract 16.8% on a year-over-year basis due to the headwinds.”
Several other brokerages have also recently issued reports on R. Buckingham Research raised their target price on shares of Ryder System from $92.00 to $93.00 and gave the stock a buy rating in a report on Wednesday, October 25th. ValuEngine cut shares of Ryder System from a buy rating to a hold rating in a report on Friday, November 10th. Aegis reissued a buy rating and set a $91.00 target price (up previously from $84.00) on shares of Ryder System in a report on Tuesday, October 10th. JPMorgan Chase & Co. raised their target price on shares of Ryder System from $69.00 to $82.00 and gave the stock a neutral rating in a report on Thursday, October 12th. Finally, Robert W. Baird reissued an outperform rating and set a $98.00 target price (up previously from $84.00) on shares of Ryder System in a report on Monday, October 2nd. Six equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the company. The company presently has an average rating of Hold and a consensus target price of $85.00.
Ryder System (NYSE:R) traded up $0.51 during midday trading on Tuesday, hitting $89.82. 351,178 shares of the company’s stock were exchanged, compared to its average volume of 478,607. The company has a current ratio of 1.02, a quick ratio of 0.96 and a debt-to-equity ratio of 2.39. Ryder System has a fifty-two week low of $62.52 and a fifty-two week high of $90.00. The stock has a market capitalization of $4,760.00, a PE ratio of 24.21, a P/E/G ratio of 1.10 and a beta of 1.51.
Ryder System (NYSE:R) last issued its earnings results on Tuesday, October 24th. The transportation company reported $1.33 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.29 by $0.04. Ryder System had a net margin of 3.19% and a return on equity of 11.00%. The firm had revenue of $1.85 billion during the quarter, compared to analysts’ expectations of $1.80 billion. During the same quarter last year, the company posted $1.67 earnings per share. The firm’s revenue was up 7.2% compared to the same quarter last year. sell-side analysts forecast that Ryder System will post 4.51 earnings per share for the current year.
Ryder System declared that its board has authorized a share repurchase plan on Thursday, December 14th that permits the company to repurchase 1,500,000 shares. This repurchase authorization permits the transportation company to buy shares of its stock through open market purchases. Shares repurchase plans are usually a sign that the company’s board believes its shares are undervalued.
In other Ryder System news, insider Dennis C. Cooke sold 32,328 shares of Ryder System stock in a transaction on Tuesday, October 31st. The shares were sold at an average price of $81.46, for a total value of $2,633,438.88. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP John J. Gleason sold 8,760 shares of Ryder System stock in a transaction on Thursday, November 16th. The shares were sold at an average price of $78.30, for a total transaction of $685,908.00. The disclosure for this sale can be found here. Insiders sold 63,633 shares of company stock valued at $5,174,795 in the last ninety days. 1.95% of the stock is owned by corporate insiders.
Several hedge funds and other institutional investors have recently made changes to their positions in R. BlueMountain Capital Management LLC acquired a new stake in shares of Ryder System in the second quarter valued at about $109,000. Zurcher Kantonalbank Zurich Cantonalbank grew its position in shares of Ryder System by 8.7% in the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 1,953 shares of the transportation company’s stock valued at $141,000 after purchasing an additional 156 shares during the period. Edmond DE Rothschild Holding S.A. grew its position in shares of Ryder System by 94.7% in the second quarter. Edmond DE Rothschild Holding S.A. now owns 2,550 shares of the transportation company’s stock valued at $183,000 after purchasing an additional 1,240 shares during the period. Petrus Trust Company LTA acquired a new stake in shares of Ryder System in the second quarter valued at about $214,000. Finally, King Luther Capital Management Corp acquired a new stake in shares of Ryder System in the third quarter valued at about $221,000. Institutional investors and hedge funds own 89.35% of the company’s stock.
About Ryder System
Ryder System, Inc is engaged in offering transportation and supply chain management solutions. The Company operates through three segments: Fleet Management Solutions (FMS), which provides leasing, commercial rental, contract maintenance, and contract-related maintenance of trucks, tractors and trailers to customers principally in the United States, Canada and the United Kingdom; Dedicated Transportation Solutions (DTS), which provides vehicles and drivers as part of a dedicated transportation solution in the United States, and Supply Chain Solutions (SCS), which provides supply chain solutions, including distribution and transportation services in North America and Asia.
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