ZTO Express (Cayman) (NYSE:ZTO) Posts Earnings Results, Beats Estimates By $0.06 EPS

Key Points

• ZTO Express beat earnings expectations, reporting quarterly EPS of $0.56 versus the $0.50 consensus estimate. The company posted a 17.87% net margin and 14.23% return on equity.
• Shares rose to $23.11 in mid-day trading, while the stock remains below its 52-week high of $26.20. ZTO has a market capitalization of approximately $12.88 billion and a price-to-earnings ratio of 14.17.
• Analyst sentiment remains positive but mixed: the consensus rating is “Moderate Buy” with an average price target of $27.03, while some firms recently downgraded their ratings to “Hold.”

ZTO Express (Cayman) (NYSE:ZTO - Get Free Report) released its quarterly earnings results on Tuesday. The transportation company reported $0.56 earnings per share for the quarter, topping the consensus estimate of $0.50 by $0.06, Zacks reports. ZTO Express (Cayman) had a net margin of 17.87% and a return on equity of 14.23%.

ZTO Express (Cayman) Price Performance

Shares of NYSE ZTO traded up $0.20 during mid-day trading on Tuesday, reaching $23.11. 1,503,921 shares of the company were exchanged, compared to its average volume of 1,831,369. ZTO Express has a 52 week low of $17.74 and a 52 week high of $26.20. The company has a quick ratio of 1.64, a current ratio of 1.64 and a debt-to-equity ratio of 0.16. The stock has a market capitalization of $12.88 billion, a PE ratio of 14.17, a PEG ratio of 0.87 and a beta of -0.22. The company's 50 day moving average price is $23.23 and its 200 day moving average price is $23.82.

Analysts Set New Price Targets

Several equities analysts recently commented on the company. Morgan Stanley restated an "overweight" rating and set a $30.10 target price on shares of ZTO Express (Cayman) in a research report on Wednesday, May 20th. Weiss Ratings downgraded ZTO Express (Cayman) from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, May 20th. Finally, Zacks Research lowered ZTO Express (Cayman) from a "strong-buy" rating to a "hold" rating in a report on Wednesday, August 5th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, ZTO Express (Cayman) has an average rating of "Moderate Buy" and an average target price of $27.03.

Institutional Investors Weigh In On ZTO Express (Cayman)

Large investors have recently added to or reduced their stakes in the company. Corient Private Wealth LLC purchased a new position in ZTO Express (Cayman) in the 4th quarter worth $221,000. Invesco Ltd. boosted its holdings in ZTO Express (Cayman) by 32.4% during the 4th quarter. Invesco Ltd. now owns 197,679 shares of the transportation company's stock valued at $4,130,000 after acquiring an additional 48,363 shares during the period. Vident Advisory LLC boosted its holdings in ZTO Express (Cayman) by 3.3% during the 4th quarter. Vident Advisory LLC now owns 55,995 shares of the transportation company's stock valued at $1,170,000 after acquiring an additional 1,786 shares during the period. Mackenzie Financial Corp increased its stake in ZTO Express (Cayman) by 24.2% in the 4th quarter. Mackenzie Financial Corp now owns 446,411 shares of the transportation company's stock worth $9,405,000 after purchasing an additional 87,087 shares during the period. Finally, XTX Topco Ltd bought a new stake in ZTO Express (Cayman) in the fourth quarter valued at approximately $209,000. Hedge funds and other institutional investors own 41.65% of the company's stock.

About ZTO Express (Cayman)

ZTO Express (Cayman) Inc is one of China's leading express delivery companies, specializing in both domestic and cross-border parcel logistics. The company operates a technology-enabled network that connects shippers, independent pickup and delivery stations, regional sorting hubs and end customers. ZTO's service portfolio includes standard express, heavy-weight parcel delivery, time-definite shipments and e-commerce logistics solutions tailored for online retailers and marketplaces.

Founded in 2002 and headquartered in Shanghai, ZTO has grown rapidly by leveraging a franchise-style operating model that engages a broad network of independent contractors.

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