Zacks Investment Research Downgrades C.H. Robinson Worldwide (CHRW) to Hold

Zacks Investment Research cut shares of C.H. Robinson Worldwide (NASDAQ:CHRW) from a buy rating to a hold rating in a research note issued to investors on Monday morning.

According to Zacks, “C.H. Robinson performed impressively in the third quarter of 2018, surpassing both earnings and revenue estimates. Moreover, both the measures improved significantly year over year. In fact, this was the company's fourth straight quarter of net revenue growth. Improvement in operating ratio in the quarter is also a positive. The company's growth-by-acquisition poilicy is impressive as well. We are also impressed by C.H. Robinson's efforts to reward shareholders in the form of dividends and share buybacks. Owing to these tailwinds, shares of the company have outperformed its industry in a year's time. However, high costs and capital expenditures undertaken by the company are limiting bottom-line growth. The company's high debt levels are  concerning. Additionally, increased operating expenses are also worrisome.”

CHRW has been the topic of several other research reports. BidaskClub lowered shares of C.H. Robinson Worldwide from a hold rating to a sell rating in a report on Thursday, October 4th. Credit Suisse Group raised their price target on shares of C.H. Robinson Worldwide from $82.00 to $86.00 and gave the company an underperform rating in a report on Thursday, August 2nd. KeyCorp raised their price target on shares of C.H. Robinson Worldwide from $100.00 to $105.00 and gave the company an overweight rating in a report on Thursday, August 2nd. Cleveland Research restated a neutral rating on shares of C.H. Robinson Worldwide in a report on Friday, October 19th. Finally, Morgan Stanley set a $67.00 price target on shares of C.H. Robinson Worldwide and gave the company a sell rating in a report on Monday, October 22nd. Three equities research analysts have rated the stock with a sell rating, seven have given a hold rating and ten have issued a buy rating to the stock. C.H. Robinson Worldwide presently has an average rating of Hold and an average target price of $96.87.

CHRW opened at $89.24 on Monday. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.85 and a current ratio of 1.85. C.H. Robinson Worldwide has a 1 year low of $77.90 and a 1 year high of $101.20. The company has a market capitalization of $12.27 billion, a P/E ratio of 25.64, a P/E/G ratio of 2.17 and a beta of 0.52.

C.H. Robinson Worldwide (NASDAQ:CHRW) last posted its quarterly earnings results on Tuesday, October 30th. The transportation company reported $1.25 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $1.17 by $0.08. C.H. Robinson Worldwide had a net margin of 3.83% and a return on equity of 41.22%. The firm had revenue of $4.29 billion for the quarter, compared to analyst estimates of $4.30 billion. During the same quarter last year, the firm posted $0.85 earnings per share. C.H. Robinson Worldwide’s revenue for the quarter was up 13.4% compared to the same quarter last year. As a group, equities research analysts anticipate that C.H. Robinson Worldwide will post 4.57 EPS for the current year.

In other news, insider Ben G. Campbell sold 4,000 shares of C.H. Robinson Worldwide stock in a transaction that occurred on Monday, September 10th. The shares were sold at an average price of $100.00, for a total transaction of $400,000.00. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Company insiders own 0.97% of the company’s stock.

Several institutional investors and hedge funds have recently bought and sold shares of the company. Morgan Stanley increased its stake in shares of C.H. Robinson Worldwide by 16.5% in the third quarter. Morgan Stanley now owns 711,089 shares of the transportation company’s stock worth $69,630,000 after buying an additional 100,673 shares during the last quarter. Legal & General Group Plc increased its stake in shares of C.H. Robinson Worldwide by 1.1% in the third quarter. Legal & General Group Plc now owns 818,822 shares of the transportation company’s stock worth $80,172,000 after buying an additional 9,211 shares during the last quarter. Standard Life Aberdeen plc increased its stake in shares of C.H. Robinson Worldwide by 5.9% in the third quarter. Standard Life Aberdeen plc now owns 62,382 shares of the transportation company’s stock worth $6,109,000 after buying an additional 3,464 shares during the last quarter. Rehmann Capital Advisory Group increased its stake in shares of C.H. Robinson Worldwide by 9,213.2% in the third quarter. Rehmann Capital Advisory Group now owns 83,819 shares of the transportation company’s stock worth $856,000 after buying an additional 82,919 shares during the last quarter. Finally, TIAA CREF Investment Management LLC increased its stake in shares of C.H. Robinson Worldwide by 28.0% in the third quarter. TIAA CREF Investment Management LLC now owns 334,346 shares of the transportation company’s stock worth $32,739,000 after buying an additional 73,185 shares during the last quarter. Institutional investors own 88.22% of the company’s stock.

C.H. Robinson Worldwide Company Profile

C.H. Robinson Worldwide, Inc, a third party logistics company, provides freight transportation services and logistics solutions to companies in various industries worldwide. The company operates through three segments: North American Surface Transportation, Global Forwarding, and Robinson Fresh. It offers transportation and logistics services, such as truckload; less than truckload transportation which include the shipment of single or multiple pallets of freight; intermodal transportation, which is shipment service of freight in trailers or containers by a combination of truck and rail; and non-vessel ocean common carrier or freight forwarding services, as well as organizes air shipments and provides door-to-door services.

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