Ryder System Inc. (NYSE:R) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Thursday.
According to Zacks, “We expect Ryder System to struggle in the third quarter.Detailed results are scheduled to be revealed on Oct 25. The company's lackluster third quarter guidance, provided earlier, is disappointing. The Zacks Consensus Estimate for the third quarter has gone down by 9 cents to $1.65 per share over the last three months. The company also trimmed its earnings guidance for full-year 2016. Ryder now expects 2016 adjusted earnings in the band of $5.90 to $6.05 per share (old guidance: $6.10 to $6.30). Lower rental demand coupled with soft used vehicle volumes led to the dull view. Another concern is that bulk of revenues comes from Fleet Management Solutions division. We are however encouraged by Ryder's efforts to reward its shareholders. In Jul 2016, the company hiked its quarterly cash dividend by 7.3% to $0.44 per share. We also remain positive on the growth potential of the company's Dedicated Transportation Solutions business.”
R has been the subject of a number of other research reports. Royal Bank Of Canada reiterated a “hold” rating on shares of Ryder System in a research note on Monday, June 13th. Robert W. Baird reiterated a “buy” rating on shares of Ryder System in a research note on Monday, June 13th. One analyst has rated the stock with a sell rating, two have issued a hold rating and six have assigned a buy rating to the stock. The stock has an average rating of “Buy” and an average price target of $81.57.
Ryder System (NYSE:R) traded up 0.22% on Thursday, reaching $65.21. The company’s stock had a trading volume of 143,600 shares. The firm’s 50 day moving average price is $65.31 and its 200-day moving average price is $65.68. Ryder System has a 52 week low of $45.12 and a 52 week high of $76.33. The company has a market capitalization of $3.49 billion, a price-to-earnings ratio of 11.77 and a beta of 1.73.
Ryder System (NYSE:R) last announced its quarterly earnings results on Wednesday, July 27th. The company reported $1.56 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.54 by $0.02. The company earned $1.70 billion during the quarter, compared to analyst estimates of $1.70 billion. Ryder System had a return on equity of 16.21% and a net margin of 4.44%. The firm’s revenue was up 2.5% on a year-over-year basis. During the same period in the prior year, the firm posted $1.65 earnings per share. On average, equities analysts predict that Ryder System will post $5.97 EPS for the current year.
The company also recently announced a quarterly dividend, which was paid on Friday, September 16th. Shareholders of record on Monday, August 22nd were issued a dividend of $0.44 per share. This represents a $1.76 dividend on an annualized basis and a yield of 2.70%. The ex-dividend date was Thursday, August 18th. This is an increase from Ryder System’s previous quarterly dividend of $0.41. Ryder System’s dividend payout ratio (DPR) is currently 31.71%.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in R. BlackRock Japan Co. Ltd increased its position in Ryder System by 1.4% in the first quarter. BlackRock Japan Co. Ltd now owns 2,735 shares of the company’s stock worth $177,000 after buying an additional 39 shares in the last quarter. Advance Capital I Inc. purchased a new position in Ryder System during the second quarter worth approximately $202,000. Sentry Investment Management LLC purchased a new position in Ryder System during the first quarter worth approximately $203,000. Societe Generale purchased a new position in Ryder System during the second quarter worth approximately $215,000. Finally, SG Americas Securities LLC purchased a new position in Ryder System during the second quarter worth approximately $215,000. 90.95% of the stock is currently owned by institutional investors.
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 full service leasing, commercial rental, contract maintenance and contract-related maintenance of trucks, tractors and trailers to customers 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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