C.H. Robinson Worldwide (NASDAQ:CHRW) Stock Bumped Down to Hold by Wall Street Zen

Key Points

• Wall Street Zen downgraded C.H. Robinson Worldwide to “Hold” from “Buy,” although the broader analyst consensus remains “Moderate Buy” with an average price target of $196.64.
• CHRW shares were down 10.8%, opening at $140.61, despite the company beating quarterly earnings and revenue estimates with $1.61 EPS and $4.93 billion in revenue.
• Investor concerns surrounding the planned $5.8 billion RXO acquisition—including integration risk, dilution and higher leverage—have outweighed projected annual synergies of approximately $300 million.

C.H. Robinson Worldwide (NASDAQ:CHRW - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Tuesday, Wall Street Zen reports.

Several other equities analysts also recently commented on the stock. Truist Financial upped their price objective on shares of C.H. Robinson Worldwide from $210.00 to $215.00 and gave the company a "buy" rating in a report on Wednesday, July 15th. Citigroup upgraded C.H. Robinson Worldwide from a "neutral" rating to a "buy" rating and lowered their price objective for the stock from $196.00 to $185.00 in a research note on Tuesday, September 8th. Wolfe Research set a $196.00 price objective on shares of C.H. Robinson Worldwide in a research report on Thursday, July 30th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a $220.00 price target on shares of C.H. Robinson Worldwide in a report on Wednesday, July 22nd. Finally, BMO Capital Markets raised their target price on C.H. Robinson Worldwide from $180.00 to $190.00 and gave the stock a "market perform" rating in a research report on Monday, July 13th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, six have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, C.H. Robinson Worldwide currently has a consensus rating of "Moderate Buy" and an average target price of $196.64.

C.H. Robinson Worldwide Stock Down 10.8%

Shares of CHRW stock opened at $140.61 on Tuesday. The company has a current ratio of 1.58, a quick ratio of 1.58 and a debt-to-equity ratio of 1.04. C.H. Robinson Worldwide has a 1 year low of $123.64 and a 1 year high of $210.33. The firm's fifty day moving average price is $149.89 and its two-hundred day moving average price is $169.70. The firm has a market capitalization of $16.43 billion, a P/E ratio of 26.83, a PEG ratio of 1.32 and a beta of 0.94.

C.H. Robinson Worldwide (NASDAQ:CHRW - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The transportation company reported $1.61 earnings per share for the quarter, topping the consensus estimate of $1.53 by $0.08. C.H. Robinson Worldwide had a return on equity of 38.36% and a net margin of 3.73%.The firm had revenue of $4.93 billion for the quarter, compared to analyst estimates of $4.35 billion. During the same quarter in the previous year, the firm earned $1.29 EPS. The business's quarterly revenue was up 19.3% on a year-over-year basis. On average, equities analysts predict that C.H. Robinson Worldwide will post 6.19 EPS for the current fiscal year.

Hedge Funds Weigh In On C.H. Robinson Worldwide

A number of hedge funds and other institutional investors have recently modified their holdings of the company. WCM Investment Management LLC purchased a new stake in shares of C.H. Robinson Worldwide during the first quarter valued at approximately $579,922,000. Dimensional Fund Advisors LP grew its position in shares of C.H. Robinson Worldwide by 2.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,094,992 shares of the transportation company's stock worth $181,810,000 after buying an additional 25,674 shares during the period. Bank of America Corp DE grew its holdings in C.H. Robinson Worldwide by 13.7% in the first quarter. Bank of America Corp DE now owns 1,055,602 shares of the transportation company's stock worth $175,304,000 after purchasing an additional 127,103 shares during the period. Bank of New York Mellon Corp bought a new position in C.H. Robinson Worldwide during the 2nd quarter valued at approximately $172,626,000. Finally, Capital World Investors purchased a new position in shares of C.H. Robinson Worldwide in the 4th quarter worth about $165,976,000. 93.15% of the stock is currently owned by hedge funds and other institutional investors.

Key C.H. Robinson Worldwide News

Here are the key news stories impacting C.H. Robinson Worldwide this week:

• Positive Sentiment: Management expects the combination to generate approximately $300 million in annual synergies and become accretive to earnings in less than one year, potentially strengthening C.H. Robinson’s competitive position as third-party logistics firms consolidate. Why C.H. Robinson Stock Was Tumbling Today
• Positive Sentiment: The acquisition would significantly increase C.H. Robinson’s scale in truck brokerage, while RXO shareholders have responded favorably to the implied takeover value. CH Robinson to Buy RXO for $5.8 Billion in Trucking Brokerage Expansion
• Neutral Sentiment: JPMorgan lowered its C.H. Robinson price target from $225 to $198 but retained an Overweight rating, implying substantial potential upside from the recent trading level. JPMorgan Cuts C.H. Robinson Price Target
• Negative Sentiment: Investors are concerned about the deal’s size, execution risk, potential shareholder dilution from the stock component and additional leverage from the cash portion. Those concerns have outweighed the projected synergies in the initial market reaction. RXO Stock Soars as CH Robinson Acquires Truck Broker
• Negative Sentiment: The sharp decline in CHRW reflects skepticism that management can quickly integrate RXO and realize the promised cost savings, particularly amid uncertain freight-market conditions. CH Robinson Falls After Announcing RXO Acquisition

C.H. Robinson Worldwide Company Profile

C.H. Robinson Worldwide, Inc is a global third-party logistics provider that connects shippers with transportation carriers and other supply-chain service providers. The company helps businesses plan, manage and execute the movement of freight across domestic and international markets.

Its services include truckload and less-than-truckload freight brokerage, intermodal transportation, ocean and air freight forwarding, customs services, and transportation management. C.H. Robinson also provides technology and data-driven tools designed to improve shipment planning, visibility, routing and logistics performance.

Founded in 1905 and headquartered in Eden Prairie, Minnesota, C.H.

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