ZIM Integrated Shipping Services (NYSE:ZIM) Shares Gap Down on Disappointing Earnings

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) gapped down prior to trading on Wednesday following a weaker than expected earnings announcement. 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 trading hands.

The company reported $0.19 EPS for the quarter, missing the consensus estimate of $1.50 by ($1.31). The company had revenue of $1.64 billion for the quarter, compared to the consensus estimate of $1.84 billion. ZIM Integrated Shipping Services had a return on equity of 50.61% and a net margin of 23.37%.

ZIM Integrated Shipping Services Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 9th. Investors of record on Tuesday, September 2nd will be issued a dividend of $0.06 per share. This represents a $0.24 annualized dividend and a dividend yield of 1.7%. ZIM Integrated Shipping Services's payout ratio is 5.59%.

Analyst Upgrades and Downgrades

Several analysts recently commented on ZIM shares. Barclays lifted their target price on shares of ZIM Integrated Shipping Services from $14.20 to $14.80 and gave the stock an "underweight" rating in a report on Friday, June 27th. Clarkson Capital downgraded shares of ZIM Integrated Shipping Services from a "buy" rating to a "neutral" rating and set a $20.00 price objective for the company. in a report on Tuesday, May 20th. Jefferies Financial Group reissued a "hold" rating and issued a $17.00 price objective on shares of ZIM Integrated Shipping Services in a report on Wednesday, August 20th. Wall Street Zen downgraded shares of ZIM Integrated Shipping Services from a "hold" rating to a "sell" rating in a report on Friday. Finally, Citigroup reissued a "sell" rating on shares of ZIM Integrated Shipping Services in a report on Monday, August 11th. Two equities research analysts have rated the stock with a Hold rating and five have assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Strong Sell" and a consensus price target of $14.88.

Institutional Investors Weigh In On ZIM Integrated Shipping Services

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Goldman Sachs Group Inc. lifted its stake in ZIM Integrated Shipping Services by 20.1% during the first quarter. Goldman Sachs Group Inc. now owns 4,720,986 shares of the company's stock worth $68,879,000 after purchasing an additional 788,514 shares during the last quarter. Arrowstreet Capital Limited Partnership lifted its stake in ZIM Integrated Shipping Services by 134.9% during the second quarter. Arrowstreet Capital Limited Partnership now owns 4,368,287 shares of the company's stock worth $70,286,000 after purchasing an additional 2,508,432 shares during the last quarter. American Century Companies Inc. lifted its stake in ZIM Integrated Shipping Services by 15.4% during the second quarter. American Century Companies Inc. now owns 2,632,099 shares of the company's stock worth $42,350,000 after purchasing an additional 351,810 shares during the last quarter. Allianz Asset Management GmbH lifted its stake in ZIM Integrated Shipping Services by 10.8% during the second quarter. Allianz Asset Management GmbH now owns 1,546,383 shares of the company's stock worth $24,881,000 after purchasing an additional 150,841 shares during the last quarter. Finally, Jump Financial LLC lifted its stake in ZIM Integrated Shipping Services by 204.0% during the second quarter. Jump Financial LLC now owns 1,536,092 shares of the company's stock worth $24,716,000 after purchasing an additional 1,030,817 shares during the last quarter. 21.42% of the stock is currently owned by institutional investors.

ZIM Integrated Shipping Services Stock Down 1.8%

The firm has a 50 day simple moving average of $16.14 and a two-hundred day simple moving average of $16.65. The stock has a market capitalization of $1.70 billion, a P/E ratio of 0.85, a PEG ratio of 0.19 and a beta of 1.75. The company has a quick ratio of 1.11, a current ratio of 1.20 and a debt-to-equity ratio of 1.20.

ZIM Integrated Shipping Services Company Profile

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.