Robeco Institutional Asset Management B.V., a Dutch institutional investor, recently announced that it sold 15,959 shares of Ryder System Inc. during the fourth quarter, thus trimming its holdings in the transportation company by 32.8%. The firm owned 32,758 shares of Ryder System’s stock and said they were worth $2,738,000 as of its most recent filing with the Securities & Exchange Commission. Despite this divestment move by Robeco, Ryder System reported solid results for its Q4 earnings last year.
Ryder System released its Q4 earnings report on April 26th and reported an earnings-per-share (EPS) figure of $2.81 for the quarter which was slightly lower than analysts’ consensus estimates of $2.96 per share. However, despite this small miss in terms of EPS figures, Ryder improved other key financial metrics such as revenue and net margin compared to Q4 2015. While some industry analysts are skeptical given this small miss with EPS figures on an annualized basis, investors are still bullish about Ryder Systems Inc.’s future prospects.
Meanwhile, various Wall Street firms have updated their ratings systems to provide a clearer picture of what investors can expect from Ryder shares. StockNews.com raised Ryder System from a “buy” rating to a “strong-buy” rating after analyzing the transportation company’s financial performance last quarter. Wells Fargo & Company dropped their target price on Ryder stock from $100 to $80 due to some concerns regarding near-term challenges and uncertainty amid macroeconomic headwinds adversely impacting revenue growth rates in these difficult times.
On the brighter side though,Wolfe Research upgraded shares of Ryder Systems from a “peer-perform” rating to an “outperform” rating and set a $100 target range is likely based on fundamental factors such as strong growth rates driven by robust demand fundamentals amid impressive developments taking root in several segments like logistics outsourcing among others which could potentially increase net margins for Ryder transferring benefits to investors.
Finally, industry analysts suggest that Ryder System’s recent authorization of share buyback programs could be an indication that the company believes its shares are undervalued. That being said, the stock has strong fundamentals and given the growth potential in various markets where it operates, the shares may prove to be investment bargains in the long run. Ultimately only time will reveal whether investors like Robeco have missed out on significant returns by reducing their holdings or made a wise move by being conservative with respect to Ryder System’s future prospects.
Institutional Investors and Hedge Funds Increase Stake in Ryder System, Inc.
Ryder System, Inc., a leading provider of supply chain and fleet management solutions, has recently witnessed changes in its investors’ positions as reported in their latest financial statement. According to the report, there has been an increase in institutional investors and hedge funds who have bought new shares of Ryder System, Inc.
Romano Brothers and Company made headlines by acquiring a new stake in the company’s shares worth around $25,000 during the fourth quarter. Similarly, C M Bidwell & Associates Limited saw a 3,250% increase in their position last year and now owns over 1,000 shares of the transportation company’s stock valued at $76,000 after purchasing an additional 975 shares in the last quarter. Livforsakringsbolaget Skandia Omsesidigt also made a recent acquisition of Ryder System’s stock worth about $91,000 early last September. Other firms such as Cutler Group LLC CA and Point72 Hong Kong Ltd also joined forces with these institutions by purchasing new stakes worth over $113,000 and $122,000 respectively during the previous quarters. As of today, about 83.69% of Ryders System’s total stocks are owned by institutional investors and hedge funds.
Despite all these investments and purchases done by different companies over the years since its creation yearning towards its viability for both retail traders as well as institutional ones it is always advisable that individuals should conduct proper due diligence before making any investment-related decision that could backfire on them eventually.
Ryder System opened currently at $79.60 on Friday as observed from data present this year so far which was considered better than many retailers they had surpassed via having a 50-day simple moving average at around $87.15 while holding steadfastly via a 200-day simple moving average positioned around $87.93 with regards to market capitalization holding steady at approximately $3.70 billion and boasting of a P/E ratio of 4.78 and a beta of 1.56. The company currently has a quick ratio of 0.58, a current ratio of 0.60, and a debt-to-equity ratio that stands at 1.55 making it less risky in terms of an investment point of view.
Additionally, Ryder System recently announced its quarterly dividend payout which was paid promptly on Friday, March 17th. Shareholders of record on Tuesday, February 21st were issued a $0.62 cash dividend, implying an annualized dividend rate of $2.48 with a dividend yield set at around 3.12%. However, the ex-dividend date is traditionally set before payments are made to shareholders as seen here which stood at Friday, February 17th.
In conclusion, this report clearly shows that Ryder System’s management team has chosen quite wisely its fruitful investments made over the years as there is proof for clear constant growth depicted from their financial statements yearly showing steady improvements when catering to different investors’ needs while keeping them engaged actively via dividends payouts as it continues to remain resilient even amidst global shocks like Covid -19 which had clearly affected some sectors negatively.