ZTO Express (Cayman) (NYSE:ZTO) Shares Gap Down – Should You Sell?

Shares of ZTO Express (Cayman) Inc. (NYSE:ZTO) gapped down prior to trading on Monday . The stock had previously closed at $20.96, but opened at $20.03. ZTO Express (Cayman) shares last traded at $19.3780, with a volume of 1,643,345 shares traded.

Analyst Upgrades and Downgrades

ZTO has been the topic of several recent research reports. Wall Street Zen cut ZTO Express (Cayman) from a “buy” rating to a “hold” rating in a report on Saturday. Zacks Research cut ZTO Express (Cayman) from a “strong-buy” rating to a “hold” rating in a report on Wednesday, August 5th. Weiss Ratings downgraded shares of ZTO Express (Cayman) from a “hold (c+)” rating to a “hold (c)” rating in a research report on Monday, August 31st. Finally, JPMorgan Chase & Co. lowered shares of ZTO Express (Cayman) from an “overweight” rating to a “neutral” rating and reduced their target price for the company from $29.00 to $22.00 in a research note on Thursday, September 3rd. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $26.05.

ZTO Express (Cayman) Stock Performance

The company has a current ratio of 1.67, a quick ratio of 1.67 and a debt-to-equity ratio of 0.16. The company has a market cap of $11.05 billion, a price-to-earnings ratio of 10.66, a P/E/G ratio of 0.75 and a beta of -0.24. The stock has a 50 day moving average price of $22.35 and a two-hundred day moving average price of $23.28.

ZTO Express (Cayman) (NYSE:ZTO) last announced its quarterly earnings data on Saturday, August 15th. The transportation company reported $0.56 EPS for the quarter, topping analysts’ consensus estimates of $0.50 by $0.06. ZTO Express (Cayman) had a return on equity of 15.90% and a net margin of 19.03%.The business had revenue of $2.14 billion during the quarter, compared to analysts’ expectations of $2.15 billion. ZTO Express (Cayman)’s revenue for the quarter was up 23.0% on a year-over-year basis. Analysts predict that ZTO Express will post 1.91 EPS for the current year.

Hedge Funds Weigh In On ZTO Express (Cayman)

Several institutional investors and hedge funds have recently made changes to their positions in the company. Todd Asset Management LLC increased its stake in ZTO Express (Cayman) by 10.4% during the 2nd quarter. Todd Asset Management LLC now owns 1,891,052 shares of the transportation company’s stock worth $42,322,000 after purchasing an additional 178,235 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its holdings in ZTO Express (Cayman) by 1,506.9% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 920,352 shares of the transportation company’s stock worth $23,165,000 after buying an additional 863,078 shares during the period. Renaissance Technologies LLC lifted its stake in ZTO Express (Cayman) by 400.2% in the first quarter. Renaissance Technologies LLC now owns 618,800 shares of the transportation company’s stock valued at $15,575,000 after buying an additional 495,100 shares in the last quarter. QRG Capital Management Inc. bought a new position in ZTO Express (Cayman) in the first quarter valued at approximately $653,000. Finally, Sei Investments Co. boosted its holdings in shares of ZTO Express (Cayman) by 575.6% in the first quarter. Sei Investments Co. now owns 211,401 shares of the transportation company’s stock valued at $5,321,000 after buying an additional 180,110 shares during the period. Institutional investors and hedge funds own 41.65% of the company’s stock.

About ZTO Express (Cayman)

ZTO Express (Cayman) Inc is a China-based express delivery and logistics company. Through its operating network, the company provides parcel collection, sorting, transportation and delivery services for e-commerce merchants, businesses and individual customers.

ZTO’s services primarily cover domestic express delivery in China and are supported by distribution hubs, sorting facilities, transportation routes, delivery outlets and third-party network partners. The company also offers logistics-related services, including freight forwarding and other supply-chain solutions, while serving the needs of China’s growing online retail market.

Founded in 2002, ZTO has expanded its operations alongside the development of China’s e-commerce sector.