Equities research analysts at Citigroup have increased their price target for Ryder System (NYSE: R) from $196.00 to $218.00. This adjustment, noted in a research report issued on October 23, 2023, indicates a potential upside of 14.30% from the company’s current stock price. Citigroup currently holds a “buy” rating on Ryder, reflecting a strong confidence in the transportation company’s future performance.
The positive sentiment surrounding Ryder System is echoed by several other financial institutions. On the same day, Wells Fargo & Company initiated coverage of Ryder with an “overweight” rating and set a price target of $210.00. Additionally, JPMorgan Chase & Co. revised their price objective from $194.00 to $197.00 while maintaining a “neutral” rating. Just weeks prior, on October 3, Wall Street Zen upgraded Ryder from a “hold” to a “buy” rating.
Analysts have shown a generally favorable outlook on Ryder System, with one investment analyst assigning a “Strong Buy” rating, eight offering a “Buy” rating, and two indicating a “Hold” rating. According to data from MarketBeat.com, the average rating remains a “Moderate Buy,” with a consensus target price of $205.67.
Recent Financial Performance
Ryder System’s quarterly earnings report, released on October 23, 2023, revealed earnings per share (EPS) of $3.57, surpassing analyst estimates of $3.56 by a narrow margin. The company reported revenue of $2.61 billion for the quarter, which fell short of predictions that anticipated $3.19 billion.
Despite these numbers, Ryder System demonstrated resilience with a return on equity of 17.69% and a net margin of 3.96%. This quarter’s revenue showed a slight increase of 0.1% compared to the same period last year, when the firm reported an EPS of $3.44. Looking ahead, Ryder has provided guidance for Q4 2025, projecting EPS between $3.500 to $3.700, and an annual forecast of $12.850 to $13.050 EPS.
Institutional Investor Activity
Recent trading activity indicates a growing interest in Ryder System among institutional investors. Valeo Financial Advisors LLC significantly increased its holdings by 51,455.2% during the second quarter, acquiring an additional 2,862,970 shares, now valued at approximately $456.1 million. State Street Corp also expanded its position, growing its stake by 0.4% to own nearly 1.995 million shares worth $317.25 million.
Orbis Allan Gray Ltd raised its stake by 15.4%, now holding 1.005 million shares valued at about $159.86 million. Bank of America Corporation increased its holdings by 6.7%, while Sei Investments Co. expanded its position by 3.5% during the third quarter. Notably, institutional investors currently own approximately 87.47% of Ryder’s stock.
Established in 1933 and headquartered in Miami, Florida, Ryder System, Inc. has evolved into a leading provider of transportation and supply chain management solutions. The company’s Fleet Management Solutions segment offers leasing and rental services for medium- and heavy-duty trucks, while its Supply Chain Solutions segment delivers integrated, technology-driven services across various sectors.
As Ryder System navigates its financial landscape, analysts and investors alike remain optimistic about its future, underscored by recent upgrades and positive earnings performance.
