Werner Enterprises (NASDAQ:WERN) Shares Gap Down on Disappointing Earnings

Werner Enterprises, Inc. (NASDAQ:WERN)’s stock price gapped down before the market opened on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $38.31, but opened at $36.34. Werner Enterprises shares last traded at $37.97, with a volume of 173,860 shares trading hands.

The transportation company reported $0.15 EPS for the quarter, missing analysts’ consensus estimates of $0.22 by ($0.07). Werner Enterprises had a net margin of 1.99% and a return on equity of 4.70%. The company had revenue of $745.70 million for the quarter, compared to analysts’ expectations of $765.24 million. During the same period in the previous year, the firm posted $0.42 earnings per share. The business’s revenue for the quarter was down 8.8% on a year-over-year basis.

Werner Enterprises Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, October 23rd. Investors of record on Monday, October 7th were issued a $0.14 dividend. The ex-dividend date was Monday, October 7th. This represents a $0.56 annualized dividend and a yield of 1.47%. Werner Enterprises’s dividend payout ratio (DPR) is currently 56.57%.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on the company. TD Cowen upped their price target on Werner Enterprises from $40.00 to $41.00 and gave the company a “buy” rating in a report on Wednesday. UBS Group lowered shares of Werner Enterprises from a “buy” rating to a “neutral” rating and set a $39.00 price target for the company. in a report on Tuesday, July 9th. Morgan Stanley lowered their price target on shares of Werner Enterprises from $57.00 to $56.00 and set an “overweight” rating for the company in a research report on Monday, July 8th. Citigroup initiated coverage on Werner Enterprises in a report on Wednesday, October 9th. They issued a “sell” rating and a $34.00 price objective for the company. Finally, JPMorgan Chase & Co. boosted their price target on shares of Werner Enterprises from $32.00 to $37.00 and gave the company an “underweight” rating in a report on Wednesday, July 31st. Seven analysts have rated the stock with a sell rating, five have given a hold rating and three have issued a buy rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $37.43.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Massmutual Trust Co. FSB ADV boosted its holdings in shares of Werner Enterprises by 390.1% in the 2nd quarter. Massmutual Trust Co. FSB ADV now owns 740 shares of the transportation company’s stock worth $27,000 after buying an additional 589 shares during the last quarter. 1620 Investment Advisors Inc. bought a new stake in shares of Werner Enterprises during the second quarter valued at about $29,000. Canada Pension Plan Investment Board bought a new position in Werner Enterprises in the 2nd quarter valued at $29,000. Quest Partners LLC bought a new stake in Werner Enterprises during the second quarter valued at $30,000. Finally, GAMMA Investing LLC increased its position in shares of Werner Enterprises by 145.7% in the third quarter. GAMMA Investing LLC now owns 801 shares of the transportation company’s stock worth $31,000 after purchasing an additional 475 shares during the last quarter. Hedge funds and other institutional investors own 89.32% of the company’s stock.

Werner Enterprises Stock Performance

The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.64 and a current ratio of 1.69. The company’s 50-day moving average price is $37.11 and its two-hundred day moving average price is $36.74. The stock has a market cap of $2.35 billion, a PE ratio of 37.78, a PEG ratio of 11.70 and a beta of 0.79.

About Werner Enterprises

Werner Enterprises, Inc, together with its subsidiaries, engages in transporting truckload shipments of general commodities in interstate and intrastate commerce in the United States, Mexico, and internationally. The company operates through two segments, Truckload Transportation Services and Werner Logistics.