ZIM Integrated Shipping Services (NYSE:ZIM) Shares Gap Down After Earnings Miss

Key Points

• ZIM Integrated Shipping Services reported a quarterly earnings miss, with an EPS of $0.19 compared to the expected $0.92, leading to a gap down in its share price from $15.55 to $14.43.
• The company has announced a quarterly dividend of $0.06 per share, resulting in a 1.6% dividend yield and a payout ratio of 4.76%.
• Analysts have set a consensus rating of "Strong Sell" for ZIM, with price targets ranging from $14.20 to $20.00 after recent downgrades from several firms.

ZIM Integrated Shipping Services Ltd. (NYSE:ZIM - Get Free Report)'s share price gapped down before the market opened on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $15.55, but opened at $14.43. ZIM Integrated Shipping Services shares last traded at $15.12, with a volume of 6,558,652 shares.

The company reported $0.19 EPS for the quarter, missing analysts' consensus estimates of $0.92 by ($0.73). ZIM Integrated Shipping Services had a return on equity of 63.46% and a net margin of 26.52%.

ZIM Integrated Shipping Services Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 9th. Stockholders of record on Tuesday, September 2nd will be given a dividend of $0.06 per share. This represents a $0.24 dividend on an annualized basis and a dividend yield of 1.6%. ZIM Integrated Shipping Services's dividend payout ratio is currently 4.76%.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on the company. Barclays lifted their target price on ZIM Integrated Shipping Services from $14.20 to $14.80 and gave the stock an "underweight" rating in a research report on Friday, June 27th. Clarkson Capital lowered ZIM Integrated Shipping Services from a "buy" rating to a "neutral" rating and set a $20.00 price objective on the stock. in a report on Tuesday, May 20th. Jefferies Financial Group restated a "hold" rating and issued a $17.00 target price on shares of ZIM Integrated Shipping Services in a research note on Wednesday. Finally, Citigroup reiterated a "sell" rating on shares of ZIM Integrated Shipping Services in a research note on Monday, August 11th. Two research analysts have rated the stock with a Hold rating and five have issued a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Strong Sell" and a consensus target price of $14.82.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in ZIM. Legacy Investment Solutions LLC bought a new stake in shares of ZIM Integrated Shipping Services in the 2nd quarter worth about $26,000. New York State Common Retirement Fund bought a new position in ZIM Integrated Shipping Services during the 1st quarter valued at about $30,000. Edmond DE Rothschild Holding S.A. acquired a new position in ZIM Integrated Shipping Services in the second quarter valued at about $37,000. Employees Retirement System of Texas bought a new stake in ZIM Integrated Shipping Services during the fourth quarter worth about $45,000. Finally, Allworth Financial LP increased its holdings in shares of ZIM Integrated Shipping Services by 230.6% during the second quarter. Allworth Financial LP now owns 3,637 shares of the company's stock worth $59,000 after buying an additional 2,537 shares in the last quarter. 21.42% of the stock is owned by institutional investors.

ZIM Integrated Shipping Services Trading Down 2.4%

The company's fifty day moving average price is $16.27 and its two-hundred day moving average price is $16.72. The company has a quick ratio of 1.10, a current ratio of 1.18 and a debt-to-equity ratio of 1.16. The company has a market cap of $1.83 billion, a price-to-earnings ratio of 0.78, a price-to-earnings-growth ratio of 0.22 and a beta of 1.75.

About ZIM Integrated Shipping Services

ZIM Integrated Shipping Services Ltd., together with its subsidiaries, provides container shipping and related services in Israel and internationally. It provides door-to-door and port-to-port transportation services for various types of customers, including end-users, consolidators, and freight forwarders.

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