Ryder System, Inc. (NYSE: R) disclosed to have entered into an accelerated share repurchase agreement (ASR) with Morgan Stanley & Co. LLC to repurchase common stock worth $300 million.
The repurchases will be undertaken with the available cash balance. As per the agreed terms, Ryder is entitled to receive an initial delivery of about 3.1 million shares. The final settlement is anticipated to happen by the end of October 2022.
The actual number of shares will depend on the average of Ryder’s daily volume-weighted average price per share of common stock during a repurchase period, less a discount and subject to adjustments pursuant to the terms of the ASR.
The Chairman and CEO for Ryder, Robert Sanchez, said, “As the ongoing supply chain and labor challenges fuel demand for Ryder’s services, we are confident in our strategy to deliver increased returns in 2022. Strong operating results in 2021 have also contributed to a healthy liquidity position, providing Ryder the ability to further invest in the business as well as return capital to shareholders through dividends and share repurchases.”
Ryder’s dividend history seems decent. The company has been increasing its quarterly dividend consistently each year, except in 2020. The company is scheduled to pay a quarterly common stock dividend of $0.58 on March 18.
Overall, the consensus among analysts is a Hold rating based on 6 unanimous Hold.
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Ryder, with 31.6% of investors on TipRanks increasing their exposure to the stock over the past 30 days.
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