Zacks Investment Research downgraded shares of Ryder System (NYSE:R) from a hold rating to a sell rating in a report issued on Thursday morning.
According to Zacks, “Shares of Ryder have declined more than 18% in a year's time on the back of numerous headwinds. High capital expenditures have been limiting bottom-line growth for quite some time and might do the same in 2019. Ryder expects its gross capital expenditures to be $3.6 billion in 2019, higher than the 2018 figure, mainly due to lease fleet growth. Its high debt levels also raise concerns. The company’s debt-to-equity ratio increased to 228% at the end of 2018, higher than 191% at the end of 2017. The same for 2019 is predicted to be 285%.Moreover, Ryder expects a headwind of $11 million in 2019 due to higher maintenance costs on model year 2012 vehicles. Surrounded by negativity, the Zacks Consensus Estimate for 2019 earnings has been revised nearly 1% downward in 60 days. However, Ryder is being aided by contractual sales growth. Buoyed by this tailwind, the company has provided an upbeat outlook.”
Other research analysts also recently issued research reports about the stock. SunTrust Banks assumed coverage on shares of Ryder System in a research note on Wednesday, December 12th. They set a buy rating and a $63.00 price objective for the company. ValuEngine raised shares of Ryder System from a strong sell rating to a sell rating in a research note on Wednesday, February 20th. Stifel Nicolaus raised shares of Ryder System from a hold rating to a buy rating and dropped their price objective for the company from $81.00 to $69.00 in a research note on Thursday, November 29th. Deutsche Bank dropped their price objective on shares of Ryder System from $88.00 to $77.00 and set a buy rating for the company in a research note on Monday, December 3rd. Finally, TheStreet raised shares of Ryder System from a c+ rating to a b- rating in a research note on Thursday, February 21st. Three analysts have rated the stock with a sell rating, two have given a hold rating and nine have assigned a buy rating to the company’s stock. Ryder System presently has a consensus rating of Hold and a consensus price target of $76.82.
Ryder System (NYSE:R) last announced its earnings results on Thursday, February 14th. The transportation company reported $1.82 earnings per share for the quarter, beating the consensus estimate of $1.81 by $0.01. Ryder System had a net margin of 3.25% and a return on equity of 10.62%. The firm had revenue of $2.26 billion during the quarter, compared to the consensus estimate of $2.19 billion. During the same quarter in the previous year, the company posted $1.37 EPS. The firm’s revenue for the quarter was up 16.9% on a year-over-year basis. On average, analysts expect that Ryder System will post 6.18 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which was paid on Friday, March 15th. Stockholders of record on Tuesday, February 19th were issued a dividend of $0.54 per share. This represents a $2.16 dividend on an annualized basis and a dividend yield of 3.54%. The ex-dividend date was Friday, February 15th. Ryder System’s payout ratio is currently 37.31%.
Several large investors have recently modified their holdings of the company. BlackRock Inc. boosted its holdings in Ryder System by 7.8% in the 4th quarter. BlackRock Inc. now owns 6,570,551 shares of the transportation company’s stock worth $316,370,000 after acquiring an additional 475,667 shares during the period. Pzena Investment Management LLC boosted its holdings in Ryder System by 21.0% in the 4th quarter. Pzena Investment Management LLC now owns 2,671,612 shares of the transportation company’s stock worth $128,638,000 after acquiring an additional 463,706 shares during the period. LSV Asset Management boosted its holdings in Ryder System by 2.8% in the 4th quarter. LSV Asset Management now owns 1,938,612 shares of the transportation company’s stock worth $93,344,000 after acquiring an additional 53,612 shares during the period. Janus Henderson Group PLC boosted its holdings in Ryder System by 222.1% in the 3rd quarter. Janus Henderson Group PLC now owns 1,022,619 shares of the transportation company’s stock worth $74,723,000 after acquiring an additional 705,115 shares during the period. Finally, Luminus Management LLC boosted its holdings in Ryder System by 53.0% in the 3rd quarter. Luminus Management LLC now owns 800,931 shares of the transportation company’s stock worth $58,524,000 after acquiring an additional 277,320 shares during the period. Institutional investors and hedge funds own 90.47% of the company’s stock.
Ryder System Company Profile
Ryder System, Inc provides transportation and supply chain management solutions worldwide. The company operates through three segments: Fleet Management Solutions (FMS), Dedicated Transportation Solutions (DTS), and Supply Chain Solutions (SCS). The FMS segment offers full service leasing and leasing with flexible maintenance options, as well as maintenance services, supplies, and related equipment for operation of the vehicles; commercial vehicle rental services; and contract or transactional maintenance services of trucks, tractors, and trailers, as well as ancillary maintenance and fleet support services.
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