Rush Enterprises (NASDAQ:RUSHA) Lowered to "Strong Sell" Rating by Zacks Research

Key Points

• Zacks Research downgraded Rush Enterprises to “strong sell” from “hold,” contrasting with other analysts’ more favorable views. The overall consensus remains “Hold,” with an average price target of $46.00.
• Rush Enterprises reported quarterly earnings of $0.40 per share, beating estimates by $0.02, while revenue of $1.90 billion was slightly above expectations.
• The stock opened at $50.11 and was up 1.6%, but insiders sold 252,561 shares worth approximately $9.1 million over the prior three months.

Rush Enterprises (NASDAQ:RUSHA - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued on Wednesday, Zacks reports.

RUSHA has been the subject of a number of other reports. Wall Street Zen upgraded Rush Enterprises from a "hold" rating to a "buy" rating in a report on Saturday, August 15th. Weiss Ratings raised shares of Rush Enterprises from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, July 23rd. Stephens upped their target price on shares of Rush Enterprises from $40.00 to $42.22 and gave the company an "overweight" rating in a research note on Thursday, July 30th. Finally, UBS Group reissued a "neutral" rating and issued a $56.67 price target (up from $52.00) on shares of Rush Enterprises in a report on Tuesday, August 25th. Three analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $46.00.

Rush Enterprises Trading Up 1.6%

Shares of NASDAQ:RUSHA opened at $50.11 on Wednesday. The company has a debt-to-equity ratio of 0.16, a quick ratio of 0.38 and a current ratio of 1.45. The stock's 50-day moving average is $40.56 and its 200-day moving average is $34.27. The company has a market cap of $5.85 billion, a P/E ratio of 22.64, a P/E/G ratio of 2.48 and a beta of 0.88. Rush Enterprises has a 52-week low of $30.45 and a 52-week high of $55.74.

Rush Enterprises (NASDAQ:RUSHA - Get Free Report) last announced its earnings results on Tuesday, July 28th. The company reported $0.40 earnings per share for the quarter, beating the consensus estimate of $0.38 by $0.02. The firm had revenue of $1.90 billion during the quarter, compared to the consensus estimate of $1.89 billion. Rush Enterprises had a return on equity of 11.65% and a net margin of 3.67%. Equities research analysts predict that Rush Enterprises will post 1.66 earnings per share for the current year.

Insider Buying and Selling at Rush Enterprises

In other Rush Enterprises news, CFO Steven Keller sold 46,525 shares of the business's stock in a transaction on Friday, July 31st. The shares were sold at an average price of $35.88, for a total value of $1,669,317.00. Following the sale, the chief financial officer owned 189,841 shares of the company's stock, valued at $6,811,495.08. The trade was a 19.68% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Michael McRoberts sold 14,625 shares of the stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $36.20, for a total transaction of $529,360.00. Following the completion of the transaction, the director owned 36,514 shares of the company's stock, valued at approximately $1,321,644.52. This represents a 28.60% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 252,561 shares of company stock worth $9,092,298 over the last three months. 12.68% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Root Financial Partners LLC grew its stake in shares of Rush Enterprises by 75.4% in the 1st quarter. Root Financial Partners LLC now owns 407 shares of the company's stock valued at $27,000 after purchasing an additional 175 shares during the period. CIBC Private Wealth Group LLC lifted its position in shares of Rush Enterprises by 495.4% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 518 shares of the company's stock worth $28,000 after buying an additional 431 shares during the period. Measured Wealth Private Client Group LLC bought a new position in shares of Rush Enterprises during the 3rd quarter worth approximately $34,000. Allworth Financial LP boosted its stake in Rush Enterprises by 5,790.9% in the 3rd quarter. Allworth Financial LP now owns 648 shares of the company's stock valued at $35,000 after buying an additional 637 shares in the last quarter. Finally, EverSource Wealth Advisors LLC boosted its stake in Rush Enterprises by 427.7% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 781 shares of the company's stock valued at $40,000 after buying an additional 633 shares in the last quarter. Institutional investors own 84.43% of the company's stock.

About Rush Enterprises

Rush Enterprises, Inc, headquartered in New Braunfels, Texas, is a leading distributor of commercial vehicles and related products in the United States. Through its Rush Truck Centers subsidiary, the company sells new and used medium- and heavy-duty trucks, buses and specialty vehicles, while also offering factory-authorized parts, collision repair, maintenance and warranty support across its network of dealerships.

Founded in 1965, Rush Enterprises has grown to encompass more than 150 locations in over 20 states, partnering with major manufacturers including Kenworth, Peterbilt, Freightliner, Volvo and Mack.

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