Knight-Swift Transportation (NYSE:KNX) Stock Price Target Lowered at Wells Fargo & Company

Key Points

• Wells Fargo lowered Knight-Swift Transportation’s price target from $81 to $79 but maintained an “overweight” rating, implying roughly 23% upside from the stock’s $64.01 price.
• Analyst sentiment remains favorable overall: MarketBeat reports a “Moderate Buy” consensus rating and an average price target of $82.78, despite mixed target revisions from other firms.
• Knight-Swift exceeded quarterly expectations, posting $0.83 in EPS versus the $0.76 consensus and $2.20 billion in revenue versus $2.16 billion expected. However, profitability remained thin, with a 0.56% net margin, while insiders sold more than $16 million of stock over the past 90 days.

Knight-Swift Transportation (NYSE:KNX - Get Free Report) had its price objective reduced by analysts at Wells Fargo & Company from $81.00 to $79.00 in a report released on Thursday, Benzinga reports. The firm presently has an "overweight" rating on the transportation company's stock. Wells Fargo & Company's price target suggests a potential upside of 23.42% from the company's current price.

Other research analysts have also issued research reports about the stock. Susquehanna lowered their price target on shares of Knight-Swift Transportation from $96.00 to $85.00 and set a "positive" rating for the company in a report on Friday, October 2nd. Benchmark raised their target price on Knight-Swift Transportation from $75.00 to $90.00 and gave the stock a "buy" rating in a research note on Thursday, July 9th. Sanford C. Bernstein initiated coverage on Knight-Swift Transportation in a research note on Thursday, September 10th. They issued an "outperform" rating and a $91.00 price target on the stock. Stephens raised Knight-Swift Transportation to a "strong-buy" rating in a research note on Wednesday, July 8th. Finally, Citigroup restated a "market outperform" rating on shares of Knight-Swift Transportation in a report on Thursday. Two research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $82.78.

Knight-Swift Transportation Trading Up 1.3%

KNX traded up $0.81 during midday trading on Thursday, hitting $64.01. 1,764,841 shares of the company were exchanged, compared to its average volume of 3,647,823. The firm's 50 day moving average price is $67.21 and its 200-day moving average price is $69.60. Knight-Swift Transportation has a 1-year low of $41.24 and a 1-year high of $82.86. The firm has a market capitalization of $10.42 billion, a P/E ratio of 245.48, a P/E/G ratio of 0.54 and a beta of 1.21. The company has a quick ratio of 0.88, a current ratio of 0.88 and a debt-to-equity ratio of 0.32.

Knight-Swift Transportation (NYSE:KNX - Get Free Report) last issued its quarterly earnings results on Wednesday, October 21st. The transportation company reported $0.83 earnings per share for the quarter, beating the consensus estimate of $0.76 by $0.07. The company had revenue of $2.20 billion during the quarter, compared to analysts' expectations of $2.16 billion. Knight-Swift Transportation had a return on equity of 3.51% and a net margin of 0.56%. The business's quarterly revenue was up 14.2% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.32 earnings per share. As a group, equities analysts forecast that Knight-Swift Transportation will post 2.42 EPS for the current fiscal year.

Insider Transactions at Knight-Swift Transportation

In other news, Director David Vander Ploeg sold 2,200 shares of the firm's stock in a transaction dated Wednesday, August 12th. The stock was sold at an average price of $52.33, for a total value of $115,126.00. Following the completion of the sale, the director directly owned 30,252 shares in the company, valued at $1,583,087.16. This trade represents a 6.78% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CAO Cary Flanagan sold 3,600 shares of the business's stock in a transaction dated Friday, July 31st. The shares were sold at an average price of $70.82, for a total value of $254,952.00. Following the completion of the sale, the chief accounting officer directly owned 5,405 shares of the company's stock, valued at $382,782.10. The trade was a 39.98% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 224,954 shares of company stock valued at $16,183,454 in the last 90 days. 2.90% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Dimensional Fund Advisors LP raised its position in shares of Knight-Swift Transportation by 0.7% during the first quarter. Dimensional Fund Advisors LP now owns 8,458,088 shares of the transportation company's stock worth $486,995,000 after purchasing an additional 60,750 shares during the period. Manning & Napier Advisors LLC acquired a new stake in Knight-Swift Transportation in the 2nd quarter valued at $173,669,000. Sei Investments Co. grew its position in Knight-Swift Transportation by 24.7% in the 1st quarter. Sei Investments Co. now owns 842,644 shares of the transportation company's stock valued at $48,519,000 after purchasing an additional 166,919 shares during the period. Principal Financial Group Inc. increased its stake in Knight-Swift Transportation by 38.9% during the 1st quarter. Principal Financial Group Inc. now owns 595,649 shares of the transportation company's stock valued at $34,297,000 after purchasing an additional 166,668 shares in the last quarter. Finally, Baird Financial Group Inc. increased its stake in Knight-Swift Transportation by 152.4% during the 2nd quarter. Baird Financial Group Inc. now owns 426,026 shares of the transportation company's stock valued at $33,175,000 after purchasing an additional 257,256 shares in the last quarter. Institutional investors own 88.77% of the company's stock.

More Knight-Swift Transportation News

Here are the key news stories impacting Knight-Swift Transportation this week:

• Positive Sentiment: Q3 earnings and revenue beat estimates. Knight-Swift reported adjusted earnings of $0.83 per share versus the $0.75-$0.76 consensus and revenue of approximately $2.20 billion, above the $2.16 billion estimate. Earnings more than doubled from $0.32 a year earlier, while revenue increased 14.2%. This marked the company’s third consecutive earnings beat. Knight-Swift Q3 earnings report
• Positive Sentiment: Management expects further improvement in the fourth quarter. Knight-Swift projected Q4 adjusted EPS of $0.78-$0.84 and said truckload operating income should improve meaningfully from the third quarter. Analysts also highlighted margin recovery and tighter trucking capacity, which could support pricing and profitability. Knight-Swift Q4 outlook
• Positive Sentiment: Price targets were raised by two analysts. Stifel lifted its target from $90 to $92 and maintained a “buy” rating. JPMorgan raised its target from $68 to $74, although it retained a “neutral” rating. The revisions indicate analysts see meaningful upside if the operating recovery continues.
• Neutral Sentiment: Valuation-focused commentary is supportive but not a new catalyst. Zacks identified KNX as a potentially attractive long-term value stock based on its style scores, providing additional support for investors focused on valuation and recovery potential. Zacks long-term value analysis
• Negative Sentiment: Profitability remains thin. Despite the earnings improvement, Knight-Swift reported a net margin of only 0.56% and return on equity of 3.51%. The company must convert stronger freight rates and capacity conditions into sustained margin expansion for the bullish outlook to hold.

Knight-Swift Transportation Company Profile

Knight-Swift Transportation Holdings Inc is a transportation and logistics company that provides freight services across North America. The company operates one of the largest truckload fleets in the United States and serves a broad range of industries through its network of company-owned equipment, independent contractors, terminals and distribution facilities.

Its services include dry-van, refrigerated and flatbed truckload transportation; dedicated and expedited delivery; less-than-truckload shipping; freight brokerage; intermodal transportation; cross-border logistics; and warehousing and other supply-chain services.

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