Old Dominion Freight Line (NASDAQ:ODFL) Rating Lowered to Hold at Wall Street Zen

Key Points

• Wall Street Zen downgraded Old Dominion Freight Line to “Hold” from “Buy.” The broader analyst consensus is also “Hold,” with 15 Hold, 10 Buy and 1 Sell rating and an average price target of $223.48.
• ODFL shares were trading around $182.70, down 3.8%, well below the 200-day moving average of $207.29. Concerns include weakening freight volumes, elevated valuation and pressure from higher fuel costs.
• The company recently beat quarterly earnings expectations, reporting $1.68 in EPS on $1.55 billion in revenue, while revenue increased 10.4% year over year. However, investors remain cautious ahead of the upcoming earnings release as shipment and tonnage trends softened.

Old Dominion Freight Line (NASDAQ:ODFL - Get Free Report) was downgraded by Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued on Sunday, Wall Street Zen reports.

Several other research analysts also recently issued reports on the stock. Weiss Ratings downgraded shares of Old Dominion Freight Line from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, August 25th. Wolfe Research raised shares of Old Dominion Freight Line from an "underperform" rating to a "peer perform" rating in a research report on Wednesday, October 7th. Truist Financial set a $230.00 target price on shares of Old Dominion Freight Line and gave the company a "buy" rating in a research note on Wednesday, October 7th. Bank of America decreased their target price on Old Dominion Freight Line from $240.00 to $205.00 in a research report on Friday, September 4th. Finally, Citigroup upgraded Old Dominion Freight Line from a "neutral" rating to a "buy" rating and lowered their price target for the company from $231.00 to $223.00 in a research note on Tuesday, September 8th. Ten analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Old Dominion Freight Line currently has a consensus rating of "Hold" and an average target price of $223.48.

Old Dominion Freight Line Trading Down 3.8%

Shares of Old Dominion Freight Line stock opened at $182.70 on Friday. The company's fifty day simple moving average is $186.11 and its 200-day simple moving average is $207.29. The company has a market cap of $37.88 billion, a price-to-earnings ratio of 35.20, a PEG ratio of 3.02 and a beta of 1.20. Old Dominion Freight Line has a 1 year low of $126.01 and a 1 year high of $252.03.

Old Dominion Freight Line (NASDAQ:ODFL - Get Free Report) last released its earnings results on Wednesday, July 29th. The transportation company reported $1.68 EPS for the quarter, beating the consensus estimate of $1.54 by $0.14. Old Dominion Freight Line had a net margin of 19.44% and a return on equity of 24.87%. The firm had revenue of $1.55 billion during the quarter, compared to analysts' expectations of $1.54 billion. During the same period in the prior year, the company earned $1.27 EPS. The business's quarterly revenue was up 10.4% compared to the same quarter last year. As a group, research analysts forecast that Old Dominion Freight Line will post 5.86 earnings per share for the current fiscal year.

Insider Transactions at Old Dominion Freight Line

In other news, SVP Cecil Overbey, Jr. sold 19,952 shares of the stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $198.39, for a total value of $3,958,277.28. Following the completion of the transaction, the senior vice president owned 22,746 shares in the company, valued at approximately $4,512,578.94. This represents a 46.73% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. 8.20% of the stock is owned by company insiders.

Institutional Trading of Old Dominion Freight Line

Institutional investors have recently made changes to their positions in the business. Bogart Wealth LLC raised its position in shares of Old Dominion Freight Line by 9.9% during the first quarter. Bogart Wealth LLC now owns 511 shares of the transportation company's stock worth $100,000 after acquiring an additional 46 shares during the last quarter. Private Advisor Group LLC lifted its stake in shares of Old Dominion Freight Line by 1.3% during the first quarter. Private Advisor Group LLC now owns 4,164 shares of the transportation company's stock valued at $814,000 after acquiring an additional 55 shares during the period. Keybank National Association OH lifted its stake in shares of Old Dominion Freight Line by 2.3% during the first quarter. Keybank National Association OH now owns 2,450 shares of the transportation company's stock valued at $479,000 after acquiring an additional 56 shares during the period. Annis Gardner Whiting Capital Advisors LLC boosted its holdings in Old Dominion Freight Line by 80.5% in the first quarter. Annis Gardner Whiting Capital Advisors LLC now owns 139 shares of the transportation company's stock valued at $27,000 after acquiring an additional 62 shares during the last quarter. Finally, Parkside Financial Bank & Trust boosted its holdings in Old Dominion Freight Line by 13.9% in the second quarter. Parkside Financial Bank & Trust now owns 526 shares of the transportation company's stock valued at $114,000 after acquiring an additional 64 shares during the last quarter. 77.82% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Old Dominion Freight Line

Here are the key news stories impacting Old Dominion Freight Line this week:

• Positive Sentiment: Old Dominion declared a quarterly dividend of $0.29 per share, payable December 16 to shareholders of record December 2. The payout provides modest income support, although the approximately 0.6% yield is unlikely to be a major stock catalyst. Old Dominion dividend announcement
• Positive Sentiment: Analysts expect strong year-over-year earnings growth in the upcoming report, while Zacks says Old Dominion’s history of earnings beats and current estimate trends could support another upside surprise. Old Dominion earnings estimate analysis
• Neutral Sentiment: Institutional positioning is mixed: 510 investors added shares in the latest quarter, while 448 reduced positions. Several large funds made sizable purchases, but other major holders cut exposure, offering no clear consensus signal.
• Neutral Sentiment: Analyst price targets remain materially above the current trading level, with a reported six-month median target of $234, but recent target reductions suggest expectations are becoming more cautious.
• Negative Sentiment: Investors appear cautious before the October 28 earnings release. August revenue per day increased 12.4%, helped by pricing, but tons per day fell 0.9% and shipments per day declined 2.4%, raising concerns about underlying freight demand. Old Dominion shares and freight signals
• Negative Sentiment: A separate analysis argues that ODFL looks expensive relative to its cash-flow generation, increasing downside risk if earnings or guidance fail to exceed elevated expectations. Old Dominion valuation analysis
• Negative Sentiment: Higher fuel costs are creating a broader competitive disadvantage for trucking companies versus railroads, potentially pressuring operating margins across the freight sector. Railroads and fuel costs

About Old Dominion Freight Line

Old Dominion Freight Line, Inc is a transportation company specializing in less-than-truckload (LTL) freight services. It transports shipments that do not require a full truck, serving business customers across a range of industries with regional, interregional and national freight transportation.

The company's services include pickup and delivery, expedited transportation, container drayage and supply-chain solutions. Old Dominion also provides shipment tracking and other technology-enabled tools designed to support freight visibility and customer logistics management.

Founded in 1934 by Earl Congdon, Old Dominion Freight Line is headquartered in Thomasville, North Carolina.

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