Werner Enterprises (NASDAQ:WERN) Stock Gets Downgrade from Robert W. Baird

Key Points

• Robert W. Baird downgraded Werner Enterprises from “strong buy” to “hold,” while the broader analyst consensus is also “hold” with an average price target of $38.85.
• Several firms recently reduced their price targets, including Bank of America to $32, Citigroup to $37, and Barclays to $38; WERN opened at $29.80, well below its 50-day and 200-day moving averages.
• Werner’s latest quarterly results missed expectations, with EPS of $0.22 versus $0.24 expected and revenue of $813.36 million versus $931.12 million forecast, adding to concerns about earnings weakness and freight demand.

Werner Enterprises (NASDAQ:WERN - Get Free Report) was downgraded by research analysts at Robert W. Baird from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Tuesday, Zacks reports.

WERN has been the topic of several other reports. Bank of America dropped their target price on Werner Enterprises from $40.00 to $32.00 and set an "underperform" rating on the stock in a report on Tuesday. Citigroup decreased their price target on Werner Enterprises from $43.00 to $37.00 and set a "neutral" rating for the company in a report on Wednesday, October 7th. Stifel Nicolaus boosted their price target on Werner Enterprises from $40.00 to $42.00 and gave the company a "hold" rating in a report on Thursday, October 8th. Barclays lowered their price objective on Werner Enterprises from $40.00 to $38.00 and set an "equal weight" rating on the stock in a research report on Tuesday. Finally, Morgan Stanley raised their price objective on shares of Werner Enterprises from $47.00 to $55.00 and gave the stock an "overweight" rating in a research note on Monday, July 6th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, nine have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, Werner Enterprises has an average rating of "Hold" and an average target price of $38.85.

Werner Enterprises Price Performance

NASDAQ:WERN opened at $29.80 on Tuesday. The firm's fifty day moving average is $36.00 and its two-hundred day moving average is $37.99. The firm has a market cap of $1.79 billion, a price-to-earnings ratio of -39.21 and a beta of 1.29. The company has a debt-to-equity ratio of 0.60, a quick ratio of 1.42 and a current ratio of 1.45. Werner Enterprises has a one year low of $23.06 and a one year high of $47.49.

Werner Enterprises (NASDAQ:WERN - Get Free Report) last released its quarterly earnings data on Tuesday, July 28th. The transportation company reported $0.22 earnings per share for the quarter, missing analysts' consensus estimates of $0.24 by ($0.02). Werner Enterprises had a negative net margin of 1.42% and a positive return on equity of 1.18%. The company had revenue of $813.36 million for the quarter, compared to analysts' expectations of $931.12 million. During the same quarter in the previous year, the business posted $0.11 EPS. The business's quarterly revenue was up 24.0% on a year-over-year basis. Research analysts expect that Werner Enterprises will post 1.08 EPS for the current year.

Institutional Investors Weigh In On Werner Enterprises

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

Trending Headlines about Werner Enterprises

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

• Positive Sentiment: Barclays maintained an “equal weight” rating but reduced its price target from $40 to $38. The revised target still implies meaningful upside from recent trading levels, suggesting the analyst sees potential value despite near-term headwinds. Barclays price target update
• Neutral Sentiment: Before the preliminary update, Zacks said Werner had factors that could support an earnings beat, while another report noted that the company was scheduled to release quarterly results. Those expectations have since been overtaken by the company’s profit warning and early third-quarter readout. Zacks earnings preview
• Negative Sentiment: Werner issued a third-quarter profit warning and preliminary adjusted EPS and revenue guidance that missed market expectations. The disappointing early results prompted a sharp decline in the stock and raise the risk of downward revisions to analyst estimates. Werner Enterprises issues Q3 profit warning Preliminary Q3 results
• Negative Sentiment: The early third-quarter readout missed expectations, confirming that earnings weakness—not simply broader market trading—is the key near-term driver of selling in WERN. Investors will focus on the company’s detailed quarterly report and outlook for evidence of when margins and freight demand may recover. MarketWatch preliminary Q3 readout

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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