4. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM)
Number of Hedge Fund Holders: 33
P/E Ratio: 2.52
ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) is a top Israeli global carrier offering container shipping, refrigerated cargo, and logistics services. Blackstone Group owns 289,761 shares of ZIM Integrated Shipping Services Ltd. (NYSE:ZIM), worth over $17 million.
In addition to being a notable value stock in Blackstone Group’s Q4 portfolio, ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) on November 17 declared a $2.50 per share interim dividend. The dividend was paid on December 27, representing approximately 20% of the quarterly net income. The company expects to distribute 30-50% of its total 2021 net income in 2022.
On February 10, ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) announced a new charter agreement with Navios Maritime Partners, according to which ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) will charter a total of thirteen container vessels comprising five secondhand vessels and eight newbuild vessels for total charter hire consideration of approximately $870 million.
Jefferies analyst Randy Giveans on January 28 raised the price target on ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) to $100 from $80 and kept a Buy rating on the shares, which he is adding to the firm’s “Franchise Picks” list after increasing his Q4, 2022, and 2023 EPS estimates given container freight rates remain at record levels.
Among the hedge funds tracked by Insider Monkey, 33 funds were bullish on ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) in Q4 2021, up from 22 funds in the prior quarter. Marshall Wace LLP held the biggest stake in the company, with 2.70 million shares worth $159.3 million.
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.”
