ZTO Express (Cayman) (ZTO) Lowered to Sell at Zacks Investment Research

Zacks Investment Research cut shares of ZTO Express (Cayman) (NYSE:ZTO) from a hold rating to a sell rating in a research report sent to investors on Monday morning, Zacks.com reports.

According to Zacks, “ZTO Express is being aided by increased parcel volumes. Additionally, impressive performance of the company's express delivery services unit is encouraging. Rapid growth of China’s e-commerce industry and increased demand for express delivery services are also encouraging. Like 2018, these factors boosted its top line in first-quarter 2019. However, high operating expenses (up almost 50%) hurt the bottom line in the first quarter as has been the case in the past few quarters. ZTO Express’ investments to expand its portfolio  are bumping up costs. In fact, the company delivered lower-than-expected earnings per share in the quarter. Stringent government regulations and tightening policies of the Chinese market too act as a major hindrance to ZTO Express’ business. In fact, shares of the company have underperformed its industry on a year-to-date basis.”

Other research analysts also recently issued reports about the company. TheStreet upgraded ZTO Express (Cayman) from a c+ rating to a b rating in a research report on Thursday, May 16th. UBS Group upgraded ZTO Express (Cayman) from a neutral rating to a buy rating in a research report on Tuesday, April 23rd. One analyst has rated the stock with a sell rating, one has given a hold rating and two have issued a buy rating to the company. The stock has a consensus rating of Hold and an average price target of $21.50.

NYSE ZTO opened at $18.05 on Monday. The company has a quick ratio of 4.12, a current ratio of 3.55 and a debt-to-equity ratio of 0.02. The company has a market cap of $9.14 billion, a PE ratio of 23.44 and a beta of 0.72. ZTO Express has a one year low of $14.69 and a one year high of $22.67.

ZTO Express (Cayman) (NYSE:ZTO) last posted its earnings results on Wednesday, May 15th. The transportation company reported $0.18 EPS for the quarter, missing analysts’ consensus estimates of $0.19 by ($0.01). The firm had revenue of $4.57 billion for the quarter, compared to the consensus estimate of $4.48 billion. ZTO Express (Cayman) had a net margin of 24.23% and a return on equity of 13.28%. The firm’s revenue was up 29.0% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.78 earnings per share. On average, sell-side analysts expect that ZTO Express will post 0.88 EPS for the current year.

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Huntington National Bank lifted its position in ZTO Express (Cayman) by 40.3% in the fourth quarter. Huntington National Bank now owns 3,066 shares of the transportation company’s stock worth $49,000 after buying an additional 880 shares during the last quarter. Ladenburg Thalmann Financial Services Inc. lifted its position in ZTO Express (Cayman) by 40.9% in the first quarter. Ladenburg Thalmann Financial Services Inc. now owns 2,805 shares of the transportation company’s stock worth $51,000 after buying an additional 814 shares during the last quarter. Advisors Asset Management Inc. lifted its position in ZTO Express (Cayman) by 255.2% in the first quarter. Advisors Asset Management Inc. now owns 3,779 shares of the transportation company’s stock worth $69,000 after buying an additional 2,715 shares during the last quarter. Rehmann Capital Advisory Group lifted its position in ZTO Express (Cayman) by 1,819.4% in the first quarter. Rehmann Capital Advisory Group now owns 7,121 shares of the transportation company’s stock worth $130,000 after buying an additional 6,750 shares during the last quarter. Finally, Acadian Asset Management LLC bought a new stake in ZTO Express (Cayman) in the first quarter worth $167,000. Hedge funds and other institutional investors own 40.54% of the company’s stock.

About ZTO Express (Cayman)

ZTO Express (Cayman) Inc provides express delivery and other value-added logistics services in the People's Republic of China. The company offers delivery services for e-commerce and traditional merchants, and other express service users. As of December 31, 2017, it operated a fleet of approximately 3,600 self-owned trucks.

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