ZIM Integrated Shipping Services (NYSE:ZIM) Trading 11.7% Higher - Should You Buy?

Key Points

• ZIM shares rallied 11.7% to $29.12 on Tuesday on heavy trading of about 4.16 million shares, roughly 39% above average volume.
• ZIM raised its quarterly dividend to $0.88 (annualized $3.52), implying a 12.4% yield; the dividend was paid March 26 with an ex-dividend date of March 20.
• Analysts are divided: MarketBeat's consensus is a “Hold” with an average target of $18.14, but recent price targets vary widely (e.g., Citi $31.80 vs. Barclays $15.80), signaling divergent views on the outlook.

ZIM Integrated Shipping Services Ltd. (NYSE:ZIM - Get Free Report) traded up 11.7% on Tuesday . The company traded as high as $28.91 and last traded at $29.1240. 4,162,504 shares were traded during mid-day trading, an increase of 39% from the average session volume of 2,993,379 shares. The stock had previously closed at $26.07.

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on the stock. Barclays upped their price target on shares of ZIM Integrated Shipping Services from $13.70 to $15.80 and gave the stock an "underweight" rating in a research note on Monday, March 16th. Weiss Ratings downgraded shares of ZIM Integrated Shipping Services from a "buy (b-)" rating to a "hold (c-)" rating in a research note on Tuesday, March 10th. The Goldman Sachs Group reaffirmed a "neutral" rating and issued a $21.00 price target on shares of ZIM Integrated Shipping Services in a research note on Wednesday, January 14th. Fearnley Fonds raised shares of ZIM Integrated Shipping Services from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, February 18th. Finally, Citigroup raised shares of ZIM Integrated Shipping Services from a "sell" rating to a "neutral" rating and upped their price target for the stock from $11.50 to $31.80 in a research note on Thursday, February 19th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $18.14.

ZIM Integrated Shipping Services Price Performance

The stock has a market capitalization of $3.43 billion, a P/E ratio of 7.15 and a beta of 1.26. The stock's fifty day moving average is $27.06 and its 200-day moving average is $22.14. The company has a debt-to-equity ratio of 1.14, a current ratio of 1.23 and a quick ratio of 1.15.

ZIM Integrated Shipping Services (NYSE:ZIM - Get Free Report) last issued its quarterly earnings data on Saturday, February 14th. The company reported $0.32 earnings per share (EPS) for the quarter. ZIM Integrated Shipping Services had a net margin of 6.94% and a return on equity of 9.33%. The firm had revenue of $1.48 billion during the quarter. On average, equities analysts anticipate that ZIM Integrated Shipping Services Ltd. will post -7.24 earnings per share for the current year.

ZIM Integrated Shipping Services Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, March 26th. Shareholders of record on Friday, March 20th were issued a dividend of $0.88 per share. This represents a $3.52 dividend on an annualized basis and a yield of 12.4%. This is a positive change from ZIM Integrated Shipping Services's previous quarterly dividend of $0.31. The ex-dividend date was Friday, March 20th. ZIM Integrated Shipping Services's dividend payout ratio is currently 1.51%.

Institutional Investors Weigh In On ZIM Integrated Shipping Services

A number of hedge funds have recently bought and sold shares of the company. Pictet Asset Management Holding SA boosted its holdings in ZIM Integrated Shipping Services by 2.3% during the first quarter. Pictet Asset Management Holding SA now owns 22,528 shares of the company's stock valued at $594,000 after acquiring an additional 497 shares during the period. Lazard Asset Management LLC boosted its holdings in ZIM Integrated Shipping Services by 4.7% during the third quarter. Lazard Asset Management LLC now owns 14,308 shares of the company's stock valued at $194,000 after acquiring an additional 638 shares during the period. Kestra Private Wealth Services LLC boosted its holdings in ZIM Integrated Shipping Services by 2.9% during the fourth quarter. Kestra Private Wealth Services LLC now owns 24,219 shares of the company's stock valued at $514,000 after acquiring an additional 689 shares during the period. HUB Investment Partners LLC boosted its holdings in ZIM Integrated Shipping Services by 6.4% during the second quarter. HUB Investment Partners LLC now owns 11,920 shares of the company's stock valued at $192,000 after acquiring an additional 722 shares during the period. Finally, Public Employees Retirement System of Ohio boosted its holdings in ZIM Integrated Shipping Services by 1.2% during the third quarter. Public Employees Retirement System of Ohio now owns 95,400 shares of the company's stock valued at $1,293,000 after acquiring an additional 1,100 shares during the period. 21.42% of the stock is currently owned by institutional investors.

About ZIM Integrated Shipping Services

ZIM Integrated Shipping Services Ltd. NYSE: ZIM is a global container shipping company specializing in the transportation of dry cargo, refrigerated goods and special project cargo. The company operates a modern fleet of container vessels that call at major ports worldwide, offering scheduled liner services and tailored logistics solutions to exporters, importers and freight forwarders.

Founded in 1945 in Haifa, Israel, ZIM has grown from a regional carrier into a worldwide operator through a series of strategic partnerships, fleet expansions and network enhancements.

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