Shares of Heartland Express, Inc. (NASDAQ:HTLD) experienced a significant increase of 9.7% during mid-day trading on Monday. This surge followed an upgrade from Baird R W, which raised the stock’s rating from hold to a strong buy. The shares reached a peak of $10.01 before closing at $10.0350, marking a notable shift in market sentiment.
Approximately 220,095 shares changed hands, which is a decline of 50% from the average daily volume of 436,836 shares. Prior to this trading session, Heartland Express closed at $9.15.
Analysts have provided mixed reviews on Heartland Express in recent months. Weiss Ratings reaffirmed a “sell (e+)” rating on December 22, 2023. In contrast, JPMorgan Chase & Co. lowered its target price for the stock from $10.00 to $9.00 and assigned an “underweight” rating on October 8, 2023. Additionally, Zacks Research upgraded the stock from a “strong sell” to a “hold” rating on October 3, 2023. Morgan Stanley also reduced its price objective from $10.00 to $8.00 in a report issued on December 8, 2023.
As of now, one investment analyst rates the stock as a strong buy, another as a buy, while two analysts have issued hold ratings and three have assigned sell ratings. According to MarketBeat.com, Heartland Express currently holds a consensus rating of “hold” with a price target of $9.25.
Financial Performance and Future Outlook
In its latest quarterly earnings report, released on November 6, 2023, Heartland Express reported a loss of ($0.11) earnings per share (EPS), which met analyst expectations. The company generated revenue of $172.43 million, falling short of the consensus estimate of $209.68 million. Heartland Express recorded a negative net margin of 4.01% and a negative return on equity of 4.37%. Analysts predict that the company will post $0.17 earnings per share for the current fiscal year.
Heartland Express also announced a quarterly dividend of $0.02, which will be paid on January 7, 2024. Investors registered by December 26, 2023, will be eligible for this dividend, which translates to an annualized dividend of $0.08 and a yield of 0.8%. The ex-dividend date is also set for December 26, 2023. The company’s payout ratio stands at -17.78%.
Company Background
Founded in 1978, Heartland Express, Inc. is headquartered in North Liberty, Iowa. The company specializes in full truckload transportation, providing dry-van services that connect shippers with customers across the continental United States. Its operations primarily focus on over-the-road freight movements, supporting industries such as manufacturing, retail, and consumer goods. Over the years, Heartland Express has evolved from a regional carrier into one of the larger truckload carriers in the United States.
As the market continues to react to these developments, investors and analysts alike will be watching Heartland Express closely for further updates on its performance and strategic direction.
