Ryder System, Inc. (R) Stock: Why It’s Headed For The Bottom

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Ryder System, Inc. (R) is falling in the market in today’s trading session. The company, focused on the service sector, is currently trading at $48.49 after tumbling -6.97% so far today. As it relates to service companies, there are a number of factors that have the ability to lead to price movement in the market. One of the most common is news. Here are the most recent stories surrounding R:

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Oct-29-19 11:17AM Ryder Grows Revenue But Records Loss On Lower Used Truck Prices
09:55AM Ryder (R) Q3 Earnings and Revenues Beat Estimates
07:55AM Ryder Reports Third Quarter 2019 Revenue of $2.2 Billion, Up 3%; Earnings Impacted by Change in Residual Value Estimates
Oct-28-19 04:30PM Ryder Chairman & CEO to Address Baird Global Industrials Conference
02:31PM Ryder System’s Q3 Earnings Preview

However, any time investors are making an investing decision, prospective investors should look into far more than just news, especially in the ever complex service sector. Here’s what’s happening in regard to Ryder System, Inc..

The Performance That R Investors Have Experienced

Although a move down in a single session, like the move that we’re seeing from Ryder System, Inc. may cause fear in some investors, a single session fall alone shouldn’t be the reason for a decision to, or not to, buy a company’s stock. It is generally smart to look at trends beyond a single trading day. When it comes to R, here are the returns on investment that we’ve seen:

  • Past 5 Trading Sessions – In the last seven days, R has seen a change in price that amounts to -2.78%.
  • Past Month – The monthly returns from Ryder System, Inc. comes to 0.68%.
  • Past Quarter – In the last quarter, the stock has produced a return that works out to -2.14%
  • Past 6 Months – In the last six months, we have seen a performance that amounts to -13.92% from the stock.
  • Year To Date – Since the open of this year R has resulted in a return on investment of 8.25%.
  • Annually – Lastly, throughout the past full year, we have seen a change amounting to -8.91% from R. Over this period of time, the stock has traded at a high of -28.32% and a low of 8.24%.

Ratios Worth Watching

Looking at a few key ratios having to do with a company can provide traders a look of how risky and/or potentially profitable a pick may be. Here are some of the key ratios to consider when digging into R.

Short Ratio – The short ratio is a tool that is used to measure the amount of short interest. As the short ratio climbs, it means that more investors have a belief that the value of the stock is headed for declines. In general, strong service sector stocks tend to come with a lower short ratio. However, we also see a lot of short squeezes in the sector. Nonetheless, with regard to Ryder System, Inc., it’s short ratio is 4.97.

Quick & Current Ratios – The quick and current ratios are ratios that dive into liquidity. Essentially, they measure If a company is able to cover its debts when they mature based on quick assets or current assets. do have strong current and quick ratios. When it comes to R, the quick and current ratios total up to 0.60 and 0.60 respectively.  

Book To Share Value – The book to share value compares the book value of assets owned by the company to the share price. when it comes to Ryder System, Inc., that ratio equates to 49.83.

Cash To Share Value – Finally, the cash to share value comparison compares the total amount of cash the company has on hand to the value of shares. In this case, the cash to share value comes to 1.73.

What Are Big Money Players Doing With Ryder System, Inc.

An interesting fact I have learned in my brief time on Earth is that good investors tend to follow the moves made by big money. So, investors that are trying to keep their investments relatively safe will keep an eye on moves made by institutional investors and those on the inside. So, is big money interested in regard to R? Here’s the information:

Institutions own 90.60% of the company. Institutional interest has moved by -0.10% over the past three months. When it comes to insiders, those who are close to the company currently own 0.40% percent of R shares. Institutions have seen ownership changes of an accumulative -2.38% over the last three months.

What Analysts Think About Ryder System, Inc.

Although it’s rarely a smart idea to unknowingly follow the thoughts of analysts, it is a good idea to use their analysis when validating your own opinions when it comes to making investment decisions in the service sector. Below are the most recent moves that we have seen from analysts as it relates to R.

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Jul-30-19 Downgrade KeyBanc Capital Markets Overweight → Sector Weight
Jul-02-19 Downgrade Loop Capital Buy → Hold $70 → $62
Nov-29-18 Upgrade Stifel Hold → Buy
Oct-25-18 Upgrade Loop Capital Hold → Buy
Oct-05-18 Upgrade Wolfe Research Peer Perform → Outperform

What We’ve Seen In earnings results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $5.69. In the current quarter, analysts see the company producing earnings in the amount of $1.48. Over the last 5 years, R has generated revenue in the amount of $5.50% with earnings coming in at 2.80%. On a quarter over quarter basis, earnings have seen movement of 1.80% and revenue has seen movement of 7.40%.

What’s Going On With Share Counts?

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 53.33M shares of Ryder System, Inc. outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, R has a float of 52.01M.

I also find it important to dig into the short percent. Think about it, if a high percentage of the float available for trading is sold short, the overall feeling among investors is that the stock is going to fall hard. In regard to R, the percentage of the float that is shorted is 5.14%. Most traders believe that a concerning short percent of the float would be considered to be anything over 40%. Nonetheless, I’ve found that a short ratio over 26% is usually a play that comes with hefty risk.

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