Ryder System (NYSE:R) Shares Gap Up on Earnings Beat

Key Points

• Ryder System shares surged after an earnings beat, opening at $250.82 versus a prior close of $240.31 and later trading near $259.87. Quarterly EPS was $4.33, exceeding analysts’ $4.15 estimate, while revenue rose 8.3% year over year to $2.76 billion.
• The company declared a quarterly dividend of $1.01 per share, equivalent to $4.04 annually and a 1.6% yield, with a payout ratio of 32.87%.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $284.12; institutional investors own 87.47% of the stock, including new positions from BlackRock and Bank of America.

Ryder System, Inc. (NYSE:R - Get Free Report) shares gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $240.31, but opened at $250.82. Ryder System shares last traded at $259.8650, with a volume of 49,936 shares.

The transportation company reported $4.33 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.15 by $0.18. Ryder System had a return on equity of 18.28% and a net margin of 3.88%. The firm had revenue of $2.76 billion during the quarter, compared to analysts' expectations of $3.38 billion. During the same quarter in the prior year, the business earned $3.57 earnings per share. The company's revenue was up 8.3% on a year-over-year basis.

Ryder System Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, December 18th. Investors of record on Monday, November 23rd will be issued a dividend of $1.01 per share. This represents a $4.04 annualized dividend and a dividend yield of 1.6%. The ex-dividend date of this dividend is Monday, November 23rd. Ryder System's dividend payout ratio is currently 32.87%.

Analyst Ratings Changes

A number of research analysts have weighed in on the stock. Susquehanna cut their target price on shares of Ryder System from $310.00 to $280.00 and set a "positive" rating for the company in a research report on Friday, October 2nd. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Ryder System in a research report on Monday, August 24th. Barclays lifted their price objective on Ryder System from $290.00 to $300.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 29th. Citizens Jmp started coverage on Ryder System in a research report on Wednesday, July 15th. They set a "market perform" rating for the company. Finally, Robert W. Baird reissued a "neutral" rating and set a $245.00 price objective (down from $290.00) on shares of Ryder System in a research report on Tuesday, September 29th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $284.12.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. BlackRock Inc. acquired a new stake in Ryder System during the second quarter worth about $1,060,749,000. Dimensional Fund Advisors LP raised its holdings in Ryder System by 0.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,621,947 shares of the transportation company's stock valued at $331,996,000 after acquiring an additional 6,652 shares in the last quarter. First Trust Advisors LP raised its holdings in Ryder System by 81.5% in the 1st quarter. First Trust Advisors LP now owns 1,010,320 shares of the transportation company's stock valued at $206,822,000 after acquiring an additional 453,697 shares in the last quarter. Bank of America Corp DE acquired a new position in Ryder System in the 2nd quarter valued at approximately $207,689,000. Finally, Bank of New York Mellon Corp bought a new stake in shares of Ryder System in the 2nd quarter worth approximately $136,320,000. Institutional investors and hedge funds own 87.47% of the company's stock.

Ryder System Price Performance

The company has a market cap of $9.96 billion, a P/E ratio of 21.12 and a beta of 1.05. The stock has a 50-day simple moving average of $242.27 and a 200 day simple moving average of $248.67. The company has a debt-to-equity ratio of 1.91, a quick ratio of 0.65 and a current ratio of 0.65.

Ryder System Company Profile

Ryder System, Inc is a transportation and logistics company that provides fleet management, supply chain and dedicated transportation services. Founded in 1933 by James Ryder and headquartered in Miami, Florida, the company serves businesses that rely on commercial vehicles, transportation networks and logistics infrastructure.

Through its Fleet Management Solutions business, Ryder offers full-service leasing, commercial vehicle rental, maintenance, fleet support and related services for trucks, tractors, trailers and other vehicles.

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