Wall Street Zen Downgrades ZTO Express (Cayman) (NYSE:ZTO) to Hold

Key Points

• Wall Street Zen downgraded ZTO Express from “buy” to “hold.” JPMorgan and Zacks Research also recently reduced their ratings, though analysts’ overall consensus remains “Moderate Buy” with an average price target of $26.05.
• ZTO shares opened at $20.98, with a market capitalization of $11.69 billion and a 52-week range of $18.11 to $26.20. The stock was trading below both its 50-day and 200-day moving averages.
• The company reported quarterly EPS of $0.56, exceeding the $0.50 consensus estimate, while revenue rose 23% year over year to $2.14 billion. Institutional investors own 41.65% of the stock, with several hedge funds increasing their positions.

ZTO Express (Cayman) (NYSE:ZTO - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a report released on Saturday, Wall Street Zen reports.

A number of other analysts have also weighed in on ZTO. Weiss Ratings lowered shares of ZTO Express (Cayman) from a "hold (c+)" rating to a "hold (c)" rating in a research note on Monday, August 31st. JPMorgan Chase & Co. lowered shares of ZTO Express (Cayman) from an "overweight" rating to a "neutral" rating and decreased their price objective for the stock from $29.00 to $22.00 in a report on Thursday, September 3rd. Finally, Zacks Research lowered ZTO Express (Cayman) from a "strong-buy" rating to a "hold" rating in a report on Wednesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $26.05.

ZTO Express (Cayman) Stock Up 0.6%

NYSE:ZTO opened at $20.98 on Friday. ZTO Express has a 1-year low of $18.11 and a 1-year high of $26.20. The company has a debt-to-equity ratio of 0.16, a current ratio of 1.67 and a quick ratio of 1.67. The firm's 50-day moving average price is $22.53 and its 200-day moving average price is $23.33. The company has a market capitalization of $11.69 billion, a PE ratio of 11.28, a P/E/G ratio of 0.81 and a beta of -0.24.

ZTO Express (Cayman) (NYSE:ZTO - Get Free Report) last released its earnings results on Saturday, August 15th. The transportation company reported $0.56 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.50 by $0.06. ZTO Express (Cayman) had a net margin of 19.03% and a return on equity of 15.90%. The firm had revenue of $2.14 billion during the quarter, compared to analyst estimates of $2.15 billion. The firm's revenue was up 23.0% compared to the same quarter last year. On average, equities analysts predict that ZTO Express will post 1.91 EPS for the current fiscal year.

Institutional Investors Weigh In On ZTO Express (Cayman)

Hedge funds have recently added to or reduced their stakes in the stock. Todd Asset Management LLC lifted its stake in shares of ZTO Express (Cayman) by 10.4% during the 2nd quarter. Todd Asset Management LLC now owns 1,891,052 shares of the transportation company's stock valued at $42,322,000 after buying an additional 178,235 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its holdings in ZTO Express (Cayman) by 1,506.9% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 920,352 shares of the transportation company's stock worth $23,165,000 after purchasing an additional 863,078 shares in the last quarter. Renaissance Technologies LLC boosted its stake in ZTO Express (Cayman) by 400.2% in the 1st quarter. Renaissance Technologies LLC now owns 618,800 shares of the transportation company's stock worth $15,575,000 after purchasing an additional 495,100 shares during the period. QRG Capital Management Inc. bought a new position in ZTO Express (Cayman) in the 1st quarter worth approximately $653,000. Finally, Sei Investments Co. raised its position in shares of ZTO Express (Cayman) by 575.6% during the first quarter. Sei Investments Co. now owns 211,401 shares of the transportation company's stock valued at $5,321,000 after buying an additional 180,110 shares during the last quarter. 41.65% of the stock is currently owned by hedge funds and other institutional investors.

ZTO Express (Cayman) Company Profile

ZTO Express (Cayman) Inc is a China-based express delivery and logistics company. Through its operating network, the company provides parcel collection, sorting, transportation and delivery services for e-commerce merchants, businesses and individual customers.

ZTO's services primarily cover domestic express delivery in China and are supported by distribution hubs, sorting facilities, transportation routes, delivery outlets and third-party network partners. The company also offers logistics-related services, including freight forwarding and other supply-chain solutions, while serving the needs of China's growing online retail market.

Founded in 2002, ZTO has expanded its operations alongside the development of China's e-commerce sector.

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