3. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM)
Renaissance Technologies’ Stake Value: $118,838,000
Percentage of Renaissance Technologies’ 13F Portfolio: 0.15%
Number of Hedge Fund Holders: 22
Dividend Yield on December 16: 20.24%
ZIM Integrated Shipping Services Ltd. (NYSE:ZIM), a globally top rated cargo shipping company from Israel, posted solid third quarter results on November 17. The company reported earnings per share of $12.16, exceeding estimates by $2.83. The Q3 revenue equaled $3.14 billion, surpassing estimated revenue by $374.27 million.
On November 17, ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) declared an interim dividend of $2.50 per share, payable on December 27 to shareholders of record on December 16. The company pays out approximately 20% of its net income in dividends, making it one of the top dividend stocks to buy according to billionaire Jim Simons’ hedge fund, with a forward yield of 20.24%.
Renaissance Technologies increased its position in ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) by 399% in the third quarter, holding 2.34 million shares worth $118.8 million, accounting for 0.15% of the firm’s total 13F securities. Overall, 22 hedge funds in the Q3 database of Insider Monkey were bullish on ZIM Integrated Shipping Services Ltd. (NYSE:ZIM), down from 25 funds in the previous quarter.
To cater to customers online, ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) created a new subsidiary, Ship4wd, a digital freight forwarding platform offering an online self-service end to end shipping solution. Ship4wd launched on October 18, targeting the US & Canadian small and medium-sized businesses importing and exporting from China, Vietnam, and Israel. The platform provides both sea and air shipping services up to the final destination, with associated logistics services, all backed up by a variety of professional vendors.
Here is what Evermore Global Advisors has to say about ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) in its Q2 2021 investor letter:
“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 full year EBITDA guidance from $1.4 – 1.6 billion to $2.5 – $2.7 billion, which was a sizable increase compared to the levels set last March. To that end, we continue to have high conviction in our position in ZIM.”
