Ryder System (R) Rating Increased to Buy at Zacks Investment Research
Ryder System (NYSE:R) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Monday. The firm currently has a $100.00 price target on the transportation company’s stock. Zacks Investment Research‘s price objective points to a potential upside of 11.33% from the stock’s previous close.
According to Zacks, “Shares of Ryder have outperformed the industry it belongs to in the last six months. The stock gained 22.8%, while the industry appreciated 14.8%. 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. Moreover, the Zacks Consensus Estimate for fourth-quarter has been revised upward 3.1% in the last 90 days. Detailed results will be out on Feb 16. However, a weak rental demand and high operating expenses may hurt the company's fourth-quarter results.”
Several other analysts have also recently weighed in on the company. ValuEngine cut Ryder System from a “buy” rating to a “hold” rating in a report on Friday, November 10th. Aegis restated a “buy” rating and set a $91.00 price target (up from $84.00) on shares of Ryder System in a report on Tuesday, October 10th. JPMorgan Chase & Co. boosted their price target on Ryder System from $69.00 to $82.00 and gave the stock a “neutral” rating in a report on Thursday, October 12th. Buckingham Research boosted their price target on Ryder System from $92.00 to $93.00 and gave the stock a “buy” rating in a report on Wednesday, October 25th. Finally, Robert W. Baird restated an “outperform” rating and set a $98.00 price target (up from $84.00) on shares of Ryder System in a report on Monday, October 2nd. Five analysts have rated the stock with a hold rating and six have issued a buy rating to the stock. The stock has an average rating of “Buy” and an average price target of $86.14.
Ryder System (NYSE:R) last released its quarterly earnings results on Tuesday, October 24th. The transportation company reported $1.33 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $1.29 by $0.04. The company had revenue of $1.85 billion for the quarter, compared to analysts’ expectations 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 posted $1.67 earnings per share. research analysts forecast that Ryder System will post 4.51 earnings per share for the current year.
Ryder System announced that its Board of Directors has approved a stock buyback plan on Thursday, December 14th that authorizes the company to repurchase 1,500,000 outstanding shares. This repurchase authorization authorizes the transportation company to purchase shares of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s board of directors believes its stock is undervalued.
In other Ryder System news, EVP John J. Gleason sold 8,760 shares of the business’s stock in a transaction that occurred on Thursday, November 16th. The stock was sold at an average price of $78.30, for a total value of $685,908.00. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Dennis C. Cooke sold 32,328 shares of the business’s stock in a transaction that occurred 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 disclosure for this sale can be found here. Insiders sold 63,633 shares of company stock worth $5,174,795 over the last quarter. 1.95% of the stock is currently owned by company insiders.
A number of institutional investors and hedge funds have recently modified their holdings of the business. BlackRock Inc. lifted its stake in Ryder System by 41.7% in the second quarter. BlackRock Inc. now owns 5,010,932 shares of the transportation company’s stock valued at $360,685,000 after buying an additional 1,475,138 shares during the period. Artisan Partners Limited Partnership raised its position in shares of Ryder System by 3.1% during the third quarter. Artisan Partners Limited Partnership now owns 1,788,271 shares of the transportation company’s stock worth $151,198,000 after purchasing an additional 53,772 shares during the period. Schroder Investment Management Group raised its position in shares of Ryder System by 22.6% during the third quarter. Schroder Investment Management Group now owns 1,073,478 shares of the transportation company’s stock worth $90,182,000 after purchasing an additional 198,098 shares during the period. Goldman Sachs Group Inc. raised its position in shares of Ryder System by 10.9% during the second quarter. Goldman Sachs Group Inc. now owns 643,399 shares of the transportation company’s stock worth $46,312,000 after purchasing an additional 63,055 shares during the period. Finally, Pzena Investment Management LLC acquired a new position in shares of Ryder System during the third quarter worth approximately $47,625,000. 89.35% of the stock is currently owned by hedge funds and other 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 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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