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Ryder System: Big Yield, Significant New Insider Buying But Serious Challenges Remain

Mar. 03, 2020 1:13 PM ETRyder System, Inc. (R) Stock3 Comments


  • Logistical/Transportation firm Ryder System has fallen more than 40% from 52 week highs.
  • The company has had several challenges and recent disappointments including lowering FY2020 earnings guidance.
  • However, the stock now has nearly a six percent yield and has picked up some significant and recent insider buying.
  • Time to tip the toes into the water on this name? We take a deeper look at Ryder System in the paragraphs below.
  • I do much more than just articles at The Insiders Forum: Members get access to model portfolios, regular updates, a chat room, and more. Get started today »

Whether a man is a criminal or a public servant is purely a matter of perspective."― Tom Robbins, Another Roadside Attraction

The market continues to be volatile as fears around Covid-19 continue to be the dominant headwind for equities. After posting the worst weekly performance since the financial crisis last week, stocks thankfully found their footing on the first trading day of March as the Dow advanced more than 1,200 points Monday.

As I look for new opportunities for the cash allocation within my personal portfolio, I am scouring insider activity to see what stocks those 'in the know' are picking up on this big pullback. Today, we look at some significant new insider buying in beaten down Ryder System (NYSE:R).

Company Overview

Ryder System is headquartered just up the road from me here in Miami. The company provides transportation and supply chain management solutions worldwide. Ryder operates through three segments: Fleet Management Solutions, Dedicated Transportation Solutions (DTS), and Supply Chain Solutions. Over the years, the company has become a full service logistics provider, although it is mainly known for its yellow trucks. With the recent pullback in the shares, the stock has market capitalization of approximately $2 billion.

Recent News

Source: Company Presentation

The company posted a mixed Q4 in mid-February with flattish with a loss of one cent a share on a non-GAAP basis, a bit below the consensus. Revenues rose one percent on a year-over-year basis to $2.28 billion, a bit over the consensus. However, the stock took a hit when management lowered FY2020 guidance significantly. Leadership now sees FY2020 EPS coming in between $1.10 to $1.50 a share. The consensus forecast from analysts prior to that revised guidance was just north of $2.50 a share.

Source: Company Presentation

Insider Activity & Analyst Commentary

Analysts are not

Author's note: I present an update my best small and mid-cap stock ideas that insiders are buying only to subscribers of my exclusive marketplace, The Insiders Forum. Our model portfolio has more than doubled the performance of the Russell 2000 since its launch. Try a free 2-week trial today by clicking on our logo below!

This article was written by

The Insiders Forum profile picture

We are a team of analysts led by Bret Jensen, Chief Investment Strategist at Simplified Asset Management.

We run the investing group The Insiders Forum where we specialize in small and mid-cap stocks that insiders are buying. The Insiders Forum portfolio managed by Bret Jensen consists of 12-25 top stocks in different sectors of the market that are attractively valued and have had some significant and recent insider purchases. Our goal is to outperform the Russell 2000 (the benchmark) over time.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (3)

Lawrence Dickman profile picture
Put a L/O in for $32 and ignore it for awhile.
frystinger profile picture
Management is forecasting 350 mil in free cash flow for 2020 versus 119 mil of dividends. A five percent raise puts it at a 35-36% payout ratio.
Keep on the side of the road until the economic impact is fully understood from the virus and don't forget the impact of the Presidential election.
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