Ryder System (R) Rating Increased to Hold at Zacks Investment Research

Zacks Investment Research upgraded shares of Ryder System (NYSE:R) from a sell rating to a hold rating in a report released on Tuesday, January 9th.

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.”

R has been the subject of several other reports. Buckingham Research upped their target price on Ryder System from $92.00 to $93.00 and gave the company a buy rating in a report on Wednesday, October 25th. ValuEngine downgraded Ryder System from a buy rating to a hold rating in a research note on Friday, November 10th. Aegis restated a buy rating and set a $91.00 target price (up previously from $84.00) on shares of Ryder System in a research report on Tuesday, October 10th. JPMorgan Chase & Co. increased their target price on Ryder System from $69.00 to $82.00 and gave the stock a neutral rating in a research report on Thursday, October 12th. Finally, Robert W. Baird restated an outperform rating and set a $98.00 target price (up previously from $84.00) on shares of Ryder System in a research report on Monday, October 2nd. Five investment analysts have rated the stock with a hold rating and six have given a buy rating to the stock. The stock has an average rating of Buy and an average target price of $88.71.

Shares of Ryder System (R) traded down $0.09 on Tuesday, reaching $88.82. The company’s stock had a trading volume of 741,617 shares, compared to its average volume of 460,515. The firm has a market cap of $4,711.29, a P/E ratio of 24.07, a PEG ratio of 1.08 and a beta of 1.52. Ryder System has a 52-week low of $62.52 and a 52-week high of $90.02. The company has a debt-to-equity ratio of 2.39, a current ratio of 1.02 and a quick ratio of 0.96.

Ryder System (NYSE:R) last announced its earnings results on Tuesday, October 24th. The transportation company reported $1.33 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.29 by $0.04. The firm had revenue of $1.85 billion for the quarter, compared to the consensus estimate of $1.80 billion. Ryder System had a return on equity of 10.72% and a net margin of 2.75%. The business’s quarterly revenue was up 7.2% compared to the same quarter last year. During the same period in the previous year, the business earned $1.67 EPS. equities research analysts forecast that Ryder System will post 4.51 EPS for the current fiscal year.

Ryder System declared that its Board of Directors has initiated a share buyback plan on Thursday, December 14th that authorizes the company to buyback 1,500,000 outstanding shares. This buyback authorization authorizes the transportation company to repurchase shares of its stock through open market purchases. Shares buyback plans are usually a sign that the company’s management believes its shares are undervalued.

In other Ryder System news, CMO Karen M. Jones sold 4,790 shares of the firm’s stock in a transaction dated Thursday, November 2nd. The shares were sold at an average price of $81.78, for a total value of $391,726.20. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Robert D. Fatovic sold 17,755 shares of the firm’s stock in a transaction dated Thursday, November 30th. The stock was sold at an average price of $82.44, for a total transaction of $1,463,722.20. The disclosure for this sale can be found here. Insiders have sold 63,633 shares of company stock worth $5,174,795 over the last ninety days. Insiders own 1.95% of the company’s stock.

Several hedge funds have recently added to or reduced their stakes in R. BlueMountain Capital Management LLC bought a new stake in shares of Ryder System during the second quarter valued at approximately $109,000. Zurcher Kantonalbank Zurich Cantonalbank increased its position in shares of Ryder System by 8.7% during the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 1,953 shares of the transportation company’s stock valued at $141,000 after acquiring an additional 156 shares in the last quarter. Edmond DE Rothschild Holding S.A. increased its position in shares of Ryder System by 94.7% during 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 acquiring an additional 1,240 shares in the last quarter. Petrus Trust Company LTA bought a new stake in shares of Ryder System during the second quarter valued at approximately $214,000. Finally, King Luther Capital Management Corp bought a new stake in shares of Ryder System during the third quarter valued at approximately $221,000. Hedge funds and other institutional investors own 89.35% of the company’s stock.

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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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