Zacks Investment Research Lowers Ryder System Inc. (R) to Sell

Zacks Investment Research lowered shares of Ryder System Inc. (NYSE:R) from a hold rating to a sell rating in a research note published on Thursday morning.

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.”

Several other research firms have also recently weighed in on R. Robert W. Baird reiterated a buy rating on shares of Ryder System in a research note on Monday, June 13th. Royal Bank Of Canada restated a hold 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 assigned a hold rating and seven have given a buy rating to the company. Ryder System currently has a consensus rating of Buy and an average target price of $81.38.

Ryder System (NYSE:R) opened at 66.23 on Thursday. The company has a 50-day moving average price of $65.31 and a 200-day moving average price of $65.79. The company has a market capitalization of $3.54 billion, a price-to-earnings ratio of 11.96 and a beta of 1.63. Ryder System has a one year low of $45.12 and a one year high of $76.33.

Ryder System (NYSE:R) last issued its quarterly earnings results on Wednesday, July 27th. The company reported $1.56 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.54 by $0.02. The company had revenue of $1.70 billion for the quarter, compared to the consensus estimate 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% compared to the same quarter last year. During the same period last year, the business posted $1.65 earnings per share. Equities research analysts anticipate 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. Stockholders of record on Monday, August 22nd were paid a $0.44 dividend. The ex-dividend date of this dividend was Thursday, August 18th. This represents a $1.76 dividend on an annualized basis and a dividend yield of 2.66%. This is a boost from Ryder System’s previous quarterly dividend of $0.41. Ryder System’s payout ratio is 31.71%.

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. M&T Bank Corp bought a new stake in shares of Ryder System during the first quarter worth $262,000. Baker Ellis Asset Management LLC bought a new stake in shares of Ryder System during the first quarter worth $1,647,000. JPMorgan Chase & Co. raised its stake in shares of Ryder System by 261.6% in the first quarter. JPMorgan Chase & Co. now owns 94,976 shares of the company’s stock worth $6,153,000 after buying an additional 68,707 shares in the last quarter. Columbia Partners L L C Investment Management bought a new stake in shares of Ryder System during the first quarter worth $5,986,000. Finally, Sentry Investment Management LLC bought a new stake in shares of Ryder System during the first quarter worth $203,000. Institutional investors own 90.95% 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 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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