Ryder System (R) Lowered to Sell at Zacks Investment Research

Zacks Investment Research lowered shares of Ryder System (NYSE:R) from a hold rating to a sell rating in a research report sent to investors 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.”

Several other brokerages also recently weighed in on R. ValuEngine raised shares of Ryder System from a strong sell rating to a sell rating in a research report on Thursday, February 14th. Stifel Nicolaus raised shares of Ryder System from a hold rating to a buy rating and reduced their price target for the company from $81.00 to $69.00 in a research report on Thursday, November 29th. SunTrust Banks initiated coverage on shares of Ryder System in a research report on Wednesday, December 12th. They set a buy rating and a $63.00 price target for the company. Deutsche Bank reduced their price target on shares of Ryder System from $88.00 to $77.00 and set a buy rating for the company in a research report on Monday, December 3rd. Finally, TheStreet raised shares of Ryder System from a c+ rating to a b- rating in a research report on Thursday, February 21st. Three investment analysts have rated the stock with a sell rating, two have given a hold rating and nine have issued a buy rating to the company. Ryder System presently has a consensus rating of Hold and a consensus target price of $76.82.



Shares of NYSE R traded up $0.07 on Thursday, reaching $61.49. 5,925 shares of the company’s stock traded hands, compared to its average volume of 739,698. Ryder System has a 12 month low of $44.80 and a 12 month high of $79.95. The company has a market capitalization of $3.26 billion, a price-to-earnings ratio of 10.60 and a beta of 1.73. The company has a debt-to-equity ratio of 1.96, a quick ratio of 0.65 and a current ratio of 0.68.

Ryder System (NYSE:R) last announced its quarterly earnings results on Thursday, February 14th. The transportation company reported $1.82 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.81 by $0.01. The company had revenue of $2.26 billion during the quarter, compared to the consensus estimate of $2.19 billion. Ryder System had a net margin of 3.25% and a return on equity of 10.62%. The firm’s quarterly revenue was up 16.9% compared to the same quarter last year. During the same quarter last year, the firm earned $1.37 earnings per share. On average, analysts forecast that Ryder System will post 6.18 earnings per share for the current fiscal year.

The firm also recently declared a quarterly dividend, which will be paid on Friday, March 15th. Stockholders of record on Tuesday, February 19th will be paid a dividend of $0.54 per share. This represents a $2.16 annualized dividend and a dividend yield of 3.51%. The ex-dividend date is Friday, February 15th. Ryder System’s dividend payout ratio is presently 37.31%.

Several institutional investors have recently modified their holdings of R. Bank of New York Mellon Corp lifted its stake in shares of Ryder System by 0.5% during the 2nd quarter. Bank of New York Mellon Corp now owns 701,320 shares of the transportation company’s stock valued at $50,396,000 after buying an additional 3,253 shares in the last quarter. SG Americas Securities LLC increased its holdings in Ryder System by 88.3% in the 3rd quarter. SG Americas Securities LLC now owns 15,845 shares of the transportation company’s stock valued at $1,158,000 after acquiring an additional 7,432 shares during the last quarter. JPMorgan Chase & Co. increased its holdings in Ryder System by 27.5% in the 3rd quarter. JPMorgan Chase & Co. now owns 111,530 shares of the transportation company’s stock valued at $8,150,000 after acquiring an additional 24,059 shares during the last quarter. Prudential Financial Inc. increased its holdings in Ryder System by 28.7% in the 3rd quarter. Prudential Financial Inc. now owns 619,218 shares of the transportation company’s stock valued at $45,247,000 after acquiring an additional 138,066 shares during the last quarter. Finally, Commonwealth Bank of Australia increased its holdings in Ryder System by 78.9% in the 3rd quarter. Commonwealth Bank of Australia now owns 102,488 shares of the transportation company’s stock valued at $7,484,000 after acquiring an additional 45,200 shares during the last quarter. 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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