ZTO Express (Cayman) (NYSE:ZTO) Stock Crosses Below 50-Day Moving Average - Should You Sell?

Key Points

• ZTO shares fell below their 50-day moving average of $20.18, trading as low as $19.80 and last changing hands at about $20.05.
• Analyst views are mixed: MarketBeat’s consensus is “Moderate Buy” with a $24.70 average price target, though Goldman Sachs and JPMorgan recently cut their ratings to neutral and lowered targets to $22.
• In its latest reported quarter, ZTO beat EPS estimates ($0.56 versus $0.50), while revenue of $2.14 billion narrowly missed forecasts; revenue rose 23% year over year.

ZTO Express (Cayman) Inc. (NYSE:ZTO - Get Free Report) shares crossed below its fifty day moving average during trading on Thursday. The stock has a fifty day moving average of $20.18 and traded as low as $19.80. ZTO Express (Cayman) shares last traded at $20.0450, with a volume of 2,553,039 shares changing hands.

Wall Street Analyst Weigh In

ZTO has been the subject of several research reports. Wall Street Zen raised shares of ZTO Express (Cayman) from a "hold" rating to a "buy" rating in a research report on Saturday, November 7th. The Goldman Sachs Group lowered shares of ZTO Express (Cayman) from a "buy" rating to a "neutral" rating and reduced their target price for the stock from $25.00 to $22.00 in a research report on Wednesday, October 14th. Weiss Ratings downgraded shares of ZTO Express (Cayman) from a "hold (c+)" rating to a "hold (c)" rating in a research note on Monday, August 31st. Zacks Research downgraded shares of ZTO Express (Cayman) from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, August 5th. Finally, JPMorgan Chase & Co. lowered ZTO Express (Cayman) from an "overweight" rating to a "neutral" rating and lowered their price target for the company from $29.00 to $22.00 in a report on Thursday, September 3rd. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $24.70.

ZTO Express (Cayman) Stock Down 2.0%

The business has a 50 day moving average of $20.18 and a two-hundred day moving average of $22.77. The stock has a market capitalization of $11.17 billion, a PE ratio of 10.78, a PEG ratio of 0.99 and a beta of -0.18. The company has a debt-to-equity ratio of 0.16, a quick ratio of 1.67 and a current ratio of 1.67.

ZTO Express (Cayman) (NYSE:ZTO - Get Free Report) last posted 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. The company had revenue of $2.14 billion for 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%. The company's revenue for the quarter was up 23.0% compared to the same quarter last year. Analysts predict that ZTO Express will post 1.91 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the company. Advisors Asset Management Inc. purchased a new stake in shares of ZTO Express (Cayman) during the 3rd quarter valued at $568,000. Brilliance Asset Management Ltd. purchased a new position in ZTO Express (Cayman) during the 3rd quarter worth $2,652,000. Fifth Third Bancorp grew its stake in ZTO Express (Cayman) by 3.0% during the 3rd quarter. Fifth Third Bancorp now owns 26,867 shares of the transportation company's stock worth $522,000 after buying an additional 786 shares during the last quarter. Point Nemo Capital LLC grew its stake in ZTO Express (Cayman) by 13.6% during the 3rd quarter. Point Nemo Capital LLC now owns 67,220 shares of the transportation company's stock worth $1,305,000 after buying an additional 8,051 shares during the last quarter. Finally, Ethic Inc. increased its position in ZTO Express (Cayman) by 16.5% during the 3rd quarter. Ethic Inc. now owns 31,758 shares of the transportation company's stock valued at $617,000 after buying an additional 4,502 shares in the last quarter. Hedge funds and other institutional investors own 41.65% of the company's stock.

About ZTO Express (Cayman)

ZTO Express (Cayman) Inc. is a China-based express delivery and logistics company. It provides parcel collection, sorting, transportation and delivery services, serving e-commerce businesses, merchants and individual customers. The company operates a network of service outlets, transportation partners and sorting hubs across China. Its services also include freight forwarding, warehousing and cross-border logistics through its international business. Founded in 2002, ZTO is headquartered in Shanghai.

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