ArcBest (NASDAQ:ARCB) Shares Down 6.3% - Should You Sell?

Key Points

• ArcBest's shares fell by 6.3% in mid-day trading, with the stock last priced at $70.61 after hitting a low of $70.28.
• The company reported poor earnings, missing analysts' estimates by $0.12 with an EPS of $1.36 and year-over-year revenue declining by 5.1% to $1.02 billion.
• Analysts' ratings vary, with six recommending a Buy and seven a Hold, determining an average target price consensus of $90.00.

ArcBest Corporation (NASDAQ:ARCB - Get Free Report) traded down 6.3% on Tuesday . The company traded as low as $70.28 and last traded at $70.61. 150,745 shares changed hands during trading, a decline of 59% from the average session volume of 366,514 shares. The stock had previously closed at $75.34.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on the stock. Wells Fargo & Company cut their price objective on shares of ArcBest from $90.00 to $80.00 and set an "equal weight" rating on the stock in a research note on Thursday, July 31st. Bank of America upgraded shares of ArcBest from an "underperform" rating to a "neutral" rating and lifted their price objective for the company from $63.00 to $74.00 in a research note on Tuesday, June 10th. Stifel Nicolaus cut their price objective on shares of ArcBest from $93.00 to $81.00 and set a "buy" rating on the stock in a research note on Thursday, July 31st. UBS Group cut their price objective on shares of ArcBest from $84.00 to $73.00 and set a "neutral" rating on the stock in a research note on Thursday, July 31st. Finally, Citigroup dropped their price target on shares of ArcBest from $83.00 to $79.00 and set a "neutral" rating on the stock in a research report on Wednesday. Six equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $89.17.

ArcBest Price Performance

The stock has a 50 day moving average of $75.94 and a two-hundred day moving average of $70.75. The stock has a market cap of $1.60 billion, a PE ratio of 10.47, a PEG ratio of 1.30 and a beta of 1.69. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.96 and a current ratio of 0.96.

ArcBest (NASDAQ:ARCB - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The transportation company reported $1.36 earnings per share for the quarter, missing analysts' consensus estimates of $1.48 by ($0.12). The company had revenue of $1.02 billion during the quarter, compared to analysts' expectations of $1.03 billion. ArcBest had a return on equity of 8.67% and a net margin of 3.90%.The company's revenue for the quarter was down 5.1% compared to the same quarter last year. During the same period in the prior year, the business posted $1.98 EPS. Equities analysts anticipate that ArcBest Corporation will post 7 EPS for the current year.

ArcBest Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, August 22nd. Investors of record on Friday, August 8th were paid a $0.12 dividend. The ex-dividend date of this dividend was Friday, August 8th. This represents a $0.48 dividend on an annualized basis and a yield of 0.7%. ArcBest's dividend payout ratio (DPR) is currently 7.14%.

Hedge Funds Weigh In On ArcBest

A number of institutional investors have recently bought and sold shares of the stock. Alliancebernstein L.P. increased its stake in ArcBest by 3.6% in the 1st quarter. Alliancebernstein L.P. now owns 2,664,431 shares of the transportation company's stock worth $188,056,000 after purchasing an additional 92,514 shares in the last quarter. Westwood Holdings Group Inc. grew its stake in ArcBest by 36.7% during the 1st quarter. Westwood Holdings Group Inc. now owns 869,267 shares of the transportation company's stock valued at $61,353,000 after acquiring an additional 233,409 shares in the last quarter. American Century Companies Inc. grew its stake in ArcBest by 8.1% during the 2nd quarter. American Century Companies Inc. now owns 745,671 shares of the transportation company's stock valued at $57,424,000 after acquiring an additional 55,776 shares in the last quarter. Geode Capital Management LLC grew its stake in ArcBest by 0.7% during the 2nd quarter. Geode Capital Management LLC now owns 565,739 shares of the transportation company's stock valued at $43,573,000 after acquiring an additional 4,048 shares in the last quarter. Finally, Ameriprise Financial Inc. grew its stake in ArcBest by 158.7% during the 2nd quarter. Ameriprise Financial Inc. now owns 490,064 shares of the transportation company's stock valued at $37,740,000 after acquiring an additional 300,642 shares in the last quarter. Hedge funds and other institutional investors own 99.27% of the company's stock.

About ArcBest

ArcBest Corporation, an integrated logistics company, engages in the provision of ground, air, and ocean transportation solutions. It operates through two segments: Asset-Based and Asset-Light. The Asset-Based segment provides less-than-truckload (LTL) services, that transports general commodities, such as food, textiles, apparel, furniture, appliances, chemicals, non-bulk petroleum products, rubber, plastics, metal and metal products, wood, glass, automotive parts, machinery, and miscellaneous manufactured products.