1. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM)
Number of Hedge Fund Holders: 25
ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) is an Israeli shipping company that offers cargo transportation services. The company also provides digital services such as cargo tracking services, shipment booking, and a mobile shipment management app.
ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) has prospered in recent months as a result of significant increases in container shipping rates and carried volume. The stock gained 28% in the past three months. The company’s revenue in the second quarter came in at $2.38 billion, representing a 200% year-over-year growth. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) tops the list of 10 best shipping and container stocks to buy.
Samuel Bland of JPMorgan on October 5 gave an Underweight rating on ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) with a $46.02 price target. On the other hand, hedge funds are looking more positive about the shipping stock. Of the 873 elite funds tracked by Insider Monkey, 25 were long ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) at the end of June, up from 14 in the first quarter of 2021.
New York-based investment management firm King Street Capital is the leading stakeholder of the company with 1.23 million shares worth $55 million.
In the Q2 2021 investor letter of Evermore Global Advisors, the fund mentioned ZIM Integrated Shipping Services Ltd. (NYSE: ZIM) and discussed its stance on the firm. Here is what the fund said:
“ZIM Integrated Shipping Services (ZIM) was the largest contributor to the Fund’s performance during the second quarter. With a market cap of $5.2 billion, ZIM is an Israel-based containership operator that had its initial public offering on the New York Stock Exchange this past January. As a reminder, we discussed ZIM at length in the Q1 2021 quarterly commentary as one of the new investments that we initiated during that period.
There were several notable developments during the second quarter. Given the company’s unique asset light business model and targeted, global niche approach, ZIM continued to generate exceptionally strong cash flows. ZIM ended the period with approximately $1.25 billion in cash and about $915 million in net debt. Due to the strong operational performance, the company further strengthened its balance sheet by redeeming its Series 1 and Series 2 unsecured notes due in 2023. With the early redemption of the unsecured notes, ZIM was no longer subject to certain dividend restrictions, and it declared a special dividend of $2 per share, which will be payable on Sept 15th (goes ex on August 24th). Lastly, management revised its 2021 fullyear EBITDA guidance from $1.4 – 1.6 billion to $2.5 – $2.7 billion, which was a sizeable increase compared to the levels set last March. To that end, we continue to have high conviction in our position in ZIM.”
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