Unusual Call Option Trade in Zim Integrated Shipping Services Worth $225K

On May 23, 2023 at 09:35:08 ET an unusually large $225.00K block of Call contracts in Zim Integrated Shipping Services (ZIM) was sold, with a strike price of $10.00 / share, expiring in 605 day(s) (on January 17, 2025). Fintel tracks all large options trades, and the premium spent on this trade was 2.30 sigmas above the mean, placing it in the 98.50th percentile of all recent large trades made in ZIM options.

This trade was first picked up on Fintel’s real time Options Flow tool, where unusual option trades are highlighted.

What is the Fund Sentiment?

There are 396 funds or institutions reporting positions in Zim Integrated Shipping Services. This is a decrease of 47 owner(s) or 10.61% in the last quarter. Average portfolio weight of all funds dedicated to ZIM is 0.10%, a decrease of 11.86%. Total shares owned by institutions decreased in the last three months by 32.00% to 27,092K shares. The put/call ratio of ZIM is 1.56, indicating a bearish outlook.

Analyst Price Forecast Suggests 37.81% Upside

As of May 11, 2023, the average one-year price target for Zim Integrated Shipping Services is 20.23. The forecasts range from a low of 15.15 to a high of $28.35. The average price target represents an increase of 37.81% from its latest reported closing price of 14.68.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Zim Integrated Shipping Services is 6,820MM, a decrease of 33.26%. The projected annual non-GAAP EPS is 2.92.

What are Other Shareholders Doing?

Arrowstreet Capital, Limited Partnership holds 4,012K shares representing 3.34% ownership of the company. In it’s prior filing, the firm reported owning 3,207K shares, representing an increase of 20.07%. The firm increased its portfolio allocation in ZIM by 58.71% over the last quarter.

Menora Mivtachim Holdings holds 1,981K shares representing 1.65% ownership of the company. No change in the last quarter.

Renaissance Technologies holds 1,802K shares representing 1.50% ownership of the company. In it’s prior filing, the firm reported owning 2,751K shares, representing a decrease of 52.68%. The firm decreased its portfolio allocation in ZIM by 12.86% over the last quarter.

Goldman Sachs Group holds 1,325K shares representing 1.10% ownership of the company. In it’s prior filing, the firm reported owning 655K shares, representing an increase of 50.57%. The firm decreased its portfolio allocation in ZIM by 23.18% over the last quarter.

Mackenzie Financial holds 1,283K shares representing 1.07% ownership of the company. In it’s prior filing, the firm reported owning 0K shares, representing an increase of 100.00%.

Zim Integrated Shipping Services Declares $6.40 Dividend

On March 13, 2023 the company declared a regular quarterly dividend of $6.40 per share ($25.60 annualized). Shareholders of record as of March 24, 2023 received the payment on April 3, 2023. Previously, the company paid $2.95 per share.

At the current share price of $14.68 / share, the stock’s dividend yield is 174.39%.

Looking back five years and taking a sample every week, the average dividend yield has been 63.74%, the lowest has been 13.92%, and the highest has been 187.96%. The standard deviation of yields is 34.34 (n=108).

The current dividend yield is 3.22 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.71. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is -0.34%.

Zim Integrated Shipping Services Background Information
(This description is provided by the company.)

ZIM Integrated Shipping Services Ltd. is a global, asset-light container liner shipping company with leadership positions in the markets where it operates. Founded in Israelin 1945, ZIM is one of the oldest shipping liners, with over 75 years of experience, providing customers with innovative seaborne transportation and logistics services with a reputation for industry leading transit times,

This article originally appeared on Fintel

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