Werner Enterprises (NASDAQ:WERN) Downgraded by Zacks Research to Strong Sell

Key Points

• Zacks Research downgraded Werner Enterprises to “strong sell” from “hold.” Analyst sentiment remains mixed, with four buy, eight hold and four sell ratings; the average price target is $37.57.
• Shares fell 7.7% to $27.13, near the lower end of their 52-week range. Several firms recently cut their price targets, although Morgan Stanley maintained an overweight rating and Susquehanna upgraded the stock to positive.
• Werner returned to profitability with quarterly EPS of $0.16, matching estimates, while revenue rose 23.2% year over year to $825.3 million but fell well short of the $956.6 million consensus forecast. Institutional investors own approximately 89.3% of the company’s shares.

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

Other research analysts have also issued reports about the company. Morgan Stanley dropped their price target on Werner Enterprises from $55.00 to $52.00 and set an "overweight" rating on the stock in a research report on Wednesday. Stifel Nicolaus decreased their price objective on Werner Enterprises from $40.00 to $36.00 and set a "hold" rating for the company in a research report on Wednesday. Wells Fargo & Company lowered their target price on Werner Enterprises from $35.00 to $31.00 and set an "equal weight" rating on the stock in a research note on Wednesday. Susquehanna upgraded Werner Enterprises from a "neutral" rating to a "positive" rating and dropped their target price for the company from $48.00 to $44.00 in a report on Thursday, July 30th. Finally, TD Cowen reduced their price target on shares of Werner Enterprises from $43.00 to $41.00 and set a "hold" rating for the company in a research report on Wednesday, July 29th. Four analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat, Werner Enterprises has an average rating of "Hold" and an average target price of $37.57.

Werner Enterprises Trading Down 7.7%

NASDAQ WERN opened at $27.13 on Tuesday. Werner Enterprises has a twelve month low of $23.06 and a twelve month high of $47.49. The company has a debt-to-equity ratio of 0.60, a quick ratio of 1.42 and a current ratio of 1.45. The stock has a market cap of $1.63 billion, a price-to-earnings ratio of -35.70 and a beta of 1.29. The firm's 50 day moving average price is $34.79 and its two-hundred day moving average price is $36.10.

Werner Enterprises (NASDAQ:WERN - Get Free Report) last released its earnings results on Tuesday, October 27th. The transportation company reported $0.16 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.16. The company had revenue of $825.28 million during the quarter, compared to analyst estimates of $956.55 million. Werner Enterprises had a positive return on equity of 1.18% and a negative net margin of 1.42%. The company's revenue for the quarter was up 23.2% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.03) earnings per share. Equities analysts anticipate that Werner Enterprises will post 0.78 EPS for the current year.

Hedge Funds Weigh In On Werner Enterprises

Hedge funds have recently added to or reduced their stakes in the company. First Trust Advisors LP boosted its position in Werner Enterprises by 1,361.0% during the first quarter. First Trust Advisors LP now owns 1,921,152 shares of the transportation company's stock worth $56,501,000 after purchasing an additional 1,789,653 shares during the period. BlackRock Inc. grew its holdings in Werner Enterprises by 17.7% during the second quarter. BlackRock Inc. now owns 10,405,606 shares of the transportation company's stock valued at $453,788,000 after purchasing an additional 1,563,170 shares during the last quarter. Maple Rock Capital Partners Inc. raised its position in shares of Werner Enterprises by 146.9% in the second quarter. Maple Rock Capital Partners Inc. now owns 1,366,167 shares of the transportation company's stock valued at $59,579,000 after purchasing an additional 812,800 shares during the period. Bank of America Corp DE bought a new position in shares of Werner Enterprises in the second quarter valued at approximately $26,042,000. Finally, Deprince Race & Zollo Inc. raised its position in shares of Werner Enterprises by 11.1% in the first quarter. Deprince Race & Zollo Inc. now owns 3,055,017 shares of the transportation company's stock valued at $89,848,000 after purchasing an additional 304,983 shares during the period. Institutional investors and hedge funds own 89.32% of the company's stock.

Key Werner Enterprises News

Here are the key news stories impacting Werner Enterprises this week:

• Positive Sentiment: Werner returned to profitability. Third-quarter adjusted earnings were $0.16 per share, matching consensus and improving from a $0.03-per-share loss a year earlier. Revenue rose 23.2% year over year to $825.3 million. Werner Enterprises Swings To Q3 Profit; Revenue Rises 23%
• Positive Sentiment: Management sees improving freight fundamentals. Werner expects fourth-quarter one-way revenue per total mile to increase 10% to 13% and has reduced its 2026 net capital-expenditure outlook to $190 million-$205 million, which could support free cash flow. Werner Q4 Outlook and CapEx
• Positive Sentiment: Capacity reductions could improve pricing and margins. CEO Derek Leathers said enforcement-driven capacity cuts have only begun, while the company anticipates a potential multi-year freight upcycle. Analysts also highlighted fleet-efficiency improvements and a possible margin rebound. Werner Sees Multi-Year Freight Upcycle Ahead
• Neutral Sentiment: Analyst views remain mixed. Morgan Stanley kept an overweight rating despite lowering its target to $52, while JPMorgan raised its target to $34 but retained underweight. Citigroup, Stifel and Wells Fargo lowered targets and maintained neutral, hold or equal-weight ratings.
• Negative Sentiment: Revenue fell well short of expectations. Quarterly revenue of $825.3 million was below the $956.6 million consensus estimate, and Werner still reported a negative net margin. The earnings call also emphasized cost pressures, limiting the immediate benefit of the return to profit. Werner Signals Margin Rebound Amid Cost Headwinds
• Positive Sentiment: Valuation may attract bargain hunters. A recent analysis argues that Werner’s rebrand and depressed share price could offer long-term value, although this thesis depends on freight-market normalization and sustained margin improvement. Werner Stock May Be a Bargain After Graypool Rebrand

About Werner Enterprises

Werner Enterprises, Inc is a transportation and logistics company headquartered in Omaha, Nebraska. Founded in 1956 by Clarence L. Werner, the company provides freight transportation and supply chain services to customers across North America.

The company's operations include truckload transportation, dedicated transportation, and regional truckload services. Werner also provides logistics services, including freight brokerage, intermodal transportation, cross-border transportation, and supply chain management solutions.

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