Ryder System (NYSE:R) Stock Price Down 11% on Disappointing Earnings

Ryder System, Inc. (NYSE:R)’s stock price dropped 11% on Friday following a weaker than expected earnings announcement. The stock traded as low as $44.76 and last traded at $40.05, approximately 78,352 shares changed hands during trading. A decline of 89% from the average daily volume of 727,305 shares. The stock had previously closed at $45.01.

The transportation company reported ($0.01) earnings per share for the quarter, missing analysts’ consensus estimates of $0.03 by ($0.04). Ryder System had a return on equity of 11.65% and a net margin of 1.55%. The business had revenue of $2.28 billion for the quarter, compared to analysts’ expectations of $2.26 billion. During the same period in the prior year, the company earned $1.82 EPS. The company’s revenue for the quarter was up .7% compared to the same quarter last year.

The company also recently announced a quarterly dividend, which will be paid on Friday, March 20th. Investors of record on Tuesday, February 18th will be given a $0.56 dividend. This represents a $2.24 annualized dividend and a dividend yield of 5.58%. The ex-dividend date is Friday, February 14th. Ryder System’s dividend payout ratio (DPR) is currently 38.69%.

Ryder System declared that its Board of Directors has authorized a stock repurchase program on Wednesday, December 11th that permits the company to repurchase 1,500,000 outstanding shares. This repurchase authorization permits the transportation company to purchase shares of its stock through open market purchases. Shares repurchase programs are often a sign that the company’s management believes its stock is undervalued.

R has been the topic of several research reports. SunTrust Banks cut their target price on Ryder System from $65.00 to $60.00 and set a “buy” rating on the stock in a research report on Wednesday, October 30th. They noted that the move was a valuation call. Stephens cut their target price on Ryder System from $50.00 to $47.00 and set an “equal weight” rating on the stock in a research report on Friday. ValuEngine lowered Ryder System from a “buy” rating to a “hold” rating in a research report on Saturday. Stifel Nicolaus lowered Ryder System from a “buy” rating to a “hold” rating and cut their target price for the stock from $65.00 to $51.00 in a research report on Thursday, October 31st. Finally, JPMorgan Chase & Co. cut their target price on Ryder System from $49.00 to $42.00 and set an “underweight” rating on the stock in a research report on Friday. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and three have given a buy rating to the company’s stock. Ryder System currently has a consensus rating of “Hold” and a consensus price target of $56.43.

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Horizon Bancorp Inc. IN acquired a new stake in Ryder System in the 4th quarter valued at $27,000. Fieldpoint Private Securities LLC grew its stake in shares of Ryder System by 75.4% during the fourth quarter. Fieldpoint Private Securities LLC now owns 898 shares of the transportation company’s stock valued at $49,000 after acquiring an additional 386 shares in the last quarter. Tower Research Capital LLC TRC grew its stake in shares of Ryder System by 31.1% during the fourth quarter. Tower Research Capital LLC TRC now owns 1,117 shares of the transportation company’s stock valued at $61,000 after acquiring an additional 265 shares in the last quarter. Advisory Services Network LLC grew its stake in shares of Ryder System by 16.5% during the fourth quarter. Advisory Services Network LLC now owns 2,798 shares of the transportation company’s stock valued at $152,000 after acquiring an additional 397 shares in the last quarter. Finally, Zurcher Kantonalbank Zurich Cantonalbank grew its stake in shares of Ryder System by 10.4% during the third quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 3,189 shares of the transportation company’s stock valued at $165,000 after acquiring an additional 300 shares in the last quarter. Hedge funds and other institutional investors own 89.46% of the company’s stock.

The firm has a 50 day moving average price of $51.96 and a two-hundred day moving average price of $51.40. The company has a quick ratio of 0.59, a current ratio of 0.62 and a debt-to-equity ratio of 2.75. The company has a market capitalization of $2.60 billion, a price-to-earnings ratio of 15.43 and a beta of 1.84.

About Ryder System (NYSE:R)

Ryder System, Inc provides transportation and supply chain management solutions worldwide. The company operates through three segments: Fleet Management Solutions (FMS), Dedicated Transportation Solutions (DTS), and Supply Chain Solutions (SCS). The FMS segment offers full service leasing and leasing with flexible maintenance options, as well as maintenance services, supplies, and related equipment for operation of the vehicles; commercial vehicle rental services; and contract or transactional maintenance services of trucks, tractors, and trailers, as well as fleet support services.

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