Zacks Investment Research Lowers Knight-Swift Transportation (KNX) to Hold

Zacks Investment Research downgraded shares of Knight-Swift Transportation (NYSE:KNX) from a buy rating to a hold rating in a report published on Wednesday morning.

According to Zacks, “Knight-Swift's growth policy on the back of mergers and acquisitions impresses us. In line with this, the company acquired Abilene Motor Express in March 2018. Also, Knight-Swift is being aided by solid demand for freight and volume growth. The company has been able to stablilize the Swift consolidated tractor fleet on the back of consistent efforts in the first half of the year. The company's earnings per share projection for the fourth quarter is also encouraging.  However, Knight-Swift's high capital expenditures are concerning and might affect bottom line growth in the long term. Additionally, driver shortage and the subsequent constraint on truck count remain challenges for the company. Shares of the company have underperformed its industry in the past year.”

Several other research analysts have also recently weighed in on KNX. ValuEngine upgraded shares of Knight-Swift Transportation from a sell rating to a hold rating in a research note on Tuesday, September 4th. Loop Capital initiated coverage on shares of Knight-Swift Transportation in a research note on Tuesday, October 2nd. They set a buy rating and a $45.00 price target on the stock. Buckingham Research dropped their price target on shares of Knight-Swift Transportation from $54.00 to $49.00 and set a buy rating on the stock in a research note on Friday, October 12th. Morgan Stanley set a $53.00 price target on shares of Knight-Swift Transportation and gave the stock a buy rating in a research note on Monday, October 22nd. Finally, KeyCorp dropped their price target on shares of Knight-Swift Transportation from $45.00 to $41.00 and set an overweight rating on the stock in a research note on Thursday, October 25th. Seven investment analysts have rated the stock with a hold rating and eleven have given a buy rating to the company’s stock. Knight-Swift Transportation currently has an average rating of Buy and a consensus target price of $47.53.

Shares of Knight-Swift Transportation stock opened at $28.82 on Wednesday. The firm has a market cap of $5.47 billion, a PE ratio of 20.88, a price-to-earnings-growth ratio of 0.87 and a beta of 1.51. Knight-Swift Transportation has a 1-year low of $28.68 and a 1-year high of $51.94. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.43 and a current ratio of 1.43.

Knight-Swift Transportation (NYSE:KNX) last issued its quarterly earnings results on Wednesday, October 24th. The transportation company reported $0.65 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.58 by $0.07. The business had revenue of $1.35 billion for the quarter, compared to analysts’ expectations of $1.35 billion. Knight-Swift Transportation had a net margin of 13.47% and a return on equity of 7.26%. The company’s revenue was up 158.2% compared to the same quarter last year. During the same quarter last year, the company posted $0.25 EPS. As a group, equities analysts expect that Knight-Swift Transportation will post 2.36 EPS for the current fiscal year.

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 27th. Stockholders of record on Monday, December 3rd will be given a dividend of $0.06 per share. The ex-dividend date is Friday, November 30th. This represents a $0.24 annualized dividend and a dividend yield of 0.83%. Knight-Swift Transportation’s payout ratio is 17.39%.

Several hedge funds have recently made changes to their positions in the company. BlackRock Inc. raised its position in shares of Knight-Swift Transportation by 1.6% during the 3rd quarter. BlackRock Inc. now owns 12,167,791 shares of the transportation company’s stock valued at $419,543,000 after purchasing an additional 189,618 shares during the period. FMR LLC increased its holdings in Knight-Swift Transportation by 529.0% in the 3rd quarter. FMR LLC now owns 9,946,041 shares of the transportation company’s stock valued at $342,939,000 after acquiring an additional 8,364,913 shares during the last quarter. Bank of New York Mellon Corp increased its holdings in Knight-Swift Transportation by 4.5% in the 3rd quarter. Bank of New York Mellon Corp now owns 6,854,743 shares of the transportation company’s stock valued at $236,350,000 after acquiring an additional 297,157 shares during the last quarter. Millennium Management LLC increased its holdings in Knight-Swift Transportation by 24.3% in the 2nd quarter. Millennium Management LLC now owns 4,563,750 shares of the transportation company’s stock valued at $174,381,000 after acquiring an additional 893,003 shares during the last quarter. Finally, Wasatch Advisors Inc. increased its holdings in Knight-Swift Transportation by 26.2% in the 3rd quarter. Wasatch Advisors Inc. now owns 4,543,600 shares of the transportation company’s stock valued at $156,663,000 after acquiring an additional 942,617 shares during the last quarter. Hedge funds and other institutional investors own 80.94% of the company’s stock.

About Knight-Swift Transportation

Knight-Swift Transportation Holdings Inc, together with its subsidiaries, provides truckload transportation and logistics services in the United States, Mexico, and Canada. The company operates through six segments: Knight Trucking, Knight Logistics, Swift Truckload, Swift Dedicated, Swift Refrigerated, and Swift Intermodal.

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