ArcBest (NASDAQ:ARCB) Trading Down 8.1% - Should You Sell?

Key Points

• ArcBest shares dropped 8.1% to about $137.35, on unusually light trading volume, after previously closing at $149.48.
• Despite the decline, analysts remain broadly positive: the stock has a “Moderate Buy” consensus rating and an average price target of $155.08, with recent upgrades and higher targets from Stephens, Truist Financial and others.
• ArcBest recently exceeded quarterly expectations, reporting $2.38 in earnings per share versus $2.26 expected and revenue of $1.18 billion, up 15.9% year over year. The company also declared a quarterly dividend of $0.12 per share, equal to a 0.3% annual yield.

ArcBest Corporation (NASDAQ:ARCB - Get Free Report) shares fell 8.1% on Wednesday . The stock traded as low as $139.65 and last traded at $137.3510. 20,465 shares traded hands during mid-day trading, a decline of 94% from the average session volume of 365,460 shares. The stock had previously closed at $149.48.

Analyst Upgrades and Downgrades

ARCB has been the topic of several recent research reports. Stephens raised shares of ArcBest to a "strong-buy" rating in a report on Wednesday, July 8th. Bank of America upped their price target on shares of ArcBest from $138.00 to $160.00 and gave the company a "neutral" rating in a research note on Friday, June 5th. Wells Fargo & Company lifted their price objective on shares of ArcBest from $130.00 to $150.00 and gave the company an "equal weight" rating in a research note on Friday, June 5th. Truist Financial increased their target price on ArcBest from $145.00 to $165.00 and gave the stock a "buy" rating in a research report on Wednesday, July 15th. Finally, Zacks Research upgraded ArcBest from a "hold" rating to a "strong-buy" rating in a research report on Thursday, April 30th. Two analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $155.08.

ArcBest Stock Down 6.9%

The company has a current ratio of 0.93, a quick ratio of 0.93 and a debt-to-equity ratio of 0.10. The firm has a market cap of $3.10 billion, a P/E ratio of 57.27, a price-to-earnings-growth ratio of 0.53 and a beta of 1.57. The stock's fifty day moving average is $147.83 and its two-hundred day moving average is $118.65.

ArcBest (NASDAQ:ARCB - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The transportation company reported $2.38 EPS for the quarter, beating the consensus estimate of $2.26 by $0.12. The firm had revenue of $1.18 billion during the quarter, compared to the consensus estimate of $1.17 billion. ArcBest had a net margin of 1.38% and a return on equity of 6.15%. The business's quarterly revenue was up 15.9% compared to the same quarter last year. During the same period last year, the firm earned $1.36 EPS. As a group, research analysts anticipate that ArcBest Corporation will post 6.62 earnings per share for the current year.

ArcBest Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 21st. Investors of record on Friday, August 7th will be paid a dividend of $0.12 per share. The ex-dividend date of this dividend is Friday, August 7th. This represents a $0.48 annualized dividend and a yield of 0.3%. ArcBest's dividend payout ratio (DPR) is currently 19.75%.

Hedge Funds Weigh In On ArcBest

Institutional investors have recently added to or reduced their stakes in the business. Federated Hermes Inc. lifted its position in ArcBest by 126.6% during the fourth quarter. Federated Hermes Inc. now owns 1,015 shares of the transportation company's stock valued at $75,000 after purchasing an additional 567 shares during the last quarter. Hantz Financial Services Inc. increased its holdings in shares of ArcBest by 507.6% in the 4th quarter. Hantz Financial Services Inc. now owns 1,118 shares of the transportation company's stock worth $83,000 after buying an additional 934 shares during the last quarter. Canada Pension Plan Investment Board bought a new position in shares of ArcBest in the 2nd quarter worth $85,000. Assetmark Inc. raised its position in shares of ArcBest by 5,940.0% during the 4th quarter. Assetmark Inc. now owns 1,208 shares of the transportation company's stock valued at $90,000 after buying an additional 1,188 shares in the last quarter. Finally, KBC Group NV lifted its holdings in shares of ArcBest by 69.4% during the 4th quarter. KBC Group NV now owns 1,299 shares of the transportation company's stock worth $96,000 after acquiring an additional 532 shares during the last quarter. 99.27% of the stock is currently owned by institutional investors.

About ArcBest

ArcBest Corporation NASDAQ: ARCB is a transportation and logistics company that offers comprehensive freight and supply chain solutions across North America. Founded in 1923 as Arkansas Best Freight System, the company has evolved into a diversified service provider with both asset-based and asset-light operations. Its core businesses include less-than-truckload (LTL) shipping through ABF Freight, expedited full-truckload services via Panther Premium Logistics, and a range of logistics and supply chain management services under its ArcBest Integrated Logistics division.

The company's asset-based operations also encompass FleetNet America, a provider of emergency roadside assistance and maintenance services for heavy-duty vehicles.

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