ZTO Express (Cayman) (NYSE:ZTO) Sees Strong Trading Volume - Still a Buy?

Key Points

• ZTO Express shares traded actively, with approximately 2.18 million shares changing hands—11% above the prior session—while the stock rose to $19.675 from $19.49.
• Analyst views are mixed but remain broadly positive: ZTO has a consensus “Moderate Buy” rating and an average price target of $26.05, despite JPMorgan lowering its rating to neutral and cutting its target to $22.
• ZTO reported quarterly EPS of $0.56, beating estimates of $0.50, while revenue rose 23% year over year to $2.14 billion. Institutional investors and hedge funds own 41.65% of the company, with several firms recently increasing their positions.

ZTO Express (Cayman) Inc. (NYSE:ZTO - Get Free Report) shares saw an uptick in trading volume on Monday. Approximately 2,176,411 shares were traded during mid-day trading, an increase of 11% from the previous session's volume of 1,963,769 shares. The stock last traded at $19.6750 and had previously closed at $19.49.

Wall Street Analyst Weigh In

A number of analysts have recently commented on ZTO shares. Weiss Ratings cut ZTO Express (Cayman) from a "hold (c+)" rating to a "hold (c)" rating in a research report on Monday, August 31st. Wall Street Zen upgraded ZTO Express (Cayman) from a "hold" rating to a "buy" rating in a research report on Sunday. JPMorgan Chase & Co. cut shares of ZTO Express (Cayman) from an "overweight" rating to a "neutral" rating and dropped their price target for the company from $29.00 to $22.00 in a research note on Thursday, September 3rd. Finally, Zacks Research lowered shares of ZTO Express (Cayman) from a "strong-buy" rating to a "hold" rating in a report on Wednesday, August 5th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat, ZTO Express (Cayman) presently has a consensus rating of "Moderate Buy" and an average target price of $26.05.

ZTO Express (Cayman) Price Performance

The company has a debt-to-equity ratio of 0.16, a quick ratio of 1.67 and a current ratio of 1.67. The stock has a market capitalization of $10.97 billion, a PE ratio of 10.58, a price-to-earnings-growth ratio of 0.76 and a beta of -0.24. The stock's 50 day moving average is $22.06 and its two-hundred day moving average is $23.21.

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

Institutional Inflows and Outflows

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

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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