C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) Stock Now Rated "Moderate Buy" by Sell-Side Analysts

Key Points

• Analysts rate CHRW a “Moderate Buy”: Of 25 brokerages, 17 recommend buying, six rate it a hold, and the average 12-month price target is $196.64.
• C.H. Robinson’s planned $5.8 billion acquisition of RXO could add about $300 million in annual synergies and expand its truck-brokerage scale, but investors remain concerned about integration risk, dilution, and higher leverage.
• The stock opened at $140.61 after falling 10.8%, despite the company exceeding quarterly earnings and revenue estimates; institutional investors own 93.15% of its shares, and the company maintains a $0.63 quarterly dividend.

Shares of C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW - Get Free Report) have earned a consensus rating of "Moderate Buy" from the twenty-five brokerages that are presently covering the stock, MarketBeat.com reports. One research analyst has rated the stock with a sell rating, six have given a hold rating, seventeen have given a buy rating and one has assigned a strong buy rating to the company. The average 1-year price target among brokers that have covered the stock in the last year is $196.64.

A number of analysts have recently weighed in on the stock. Evercore reaffirmed an "outperform" rating and set a $237.00 price target on shares of C.H. Robinson Worldwide in a report on Thursday, July 30th. Raymond James Financial set a $192.00 price objective on shares of C.H. Robinson Worldwide in a research note on Thursday, July 30th. JPMorgan Chase & Co. lowered their price objective on shares of C.H. Robinson Worldwide from $225.00 to $198.00 and set an "overweight" rating for the company in a research report on Monday. Freedom Capital upgraded C.H. Robinson Worldwide from a "hold" rating to a "strong-buy" rating in a research note on Friday, July 31st. Finally, Weiss Ratings downgraded C.H. Robinson Worldwide from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, September 1st.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of CHRW. Continuum Advisory LLC bought a new position in shares of C.H. Robinson Worldwide in the second quarter worth about $27,000. NBH Bank bought a new stake in shares of C.H. Robinson Worldwide during the 2nd quarter valued at approximately $29,000. Millstone Evans Group LLC increased its position in C.H. Robinson Worldwide by 79.8% during the 1st quarter. Millstone Evans Group LLC now owns 160 shares of the transportation company's stock worth $27,000 after purchasing an additional 71 shares in the last quarter. Burkett Financial Services LLC acquired a new position in C.H. Robinson Worldwide during the 3rd quarter worth approximately $25,000. Finally, Cornerstone Planning Group LLC lifted its stake in C.H. Robinson Worldwide by 57.3% in the 1st quarter. Cornerstone Planning Group LLC now owns 184 shares of the transportation company's stock valued at $31,000 after purchasing an additional 67 shares during the last quarter. Institutional investors own 93.15% of the company's stock.

Trending Headlines about C.H. Robinson Worldwide

Here are the key news stories impacting C.H. Robinson Worldwide this week:

• Positive Sentiment: Management expects the combination to generate approximately $300 million in annual synergies and become accretive to earnings in less than one year, potentially strengthening C.H. Robinson’s competitive position as third-party logistics firms consolidate. Why C.H. Robinson Stock Was Tumbling Today
• Positive Sentiment: The acquisition would significantly increase C.H. Robinson’s scale in truck brokerage, while RXO shareholders have responded favorably to the implied takeover value. CH Robinson to Buy RXO for $5.8 Billion in Trucking Brokerage Expansion
• Neutral Sentiment: JPMorgan lowered its C.H. Robinson price target from $225 to $198 but retained an Overweight rating, implying substantial potential upside from the recent trading level. JPMorgan Cuts C.H. Robinson Price Target
• Negative Sentiment: Investors are concerned about the deal’s size, execution risk, potential shareholder dilution from the stock component and additional leverage from the cash portion. Those concerns have outweighed the projected synergies in the initial market reaction. RXO Stock Soars as CH Robinson Acquires Truck Broker
• Negative Sentiment: The sharp decline in CHRW reflects skepticism that management can quickly integrate RXO and realize the promised cost savings, particularly amid uncertain freight-market conditions. CH Robinson Falls After Announcing RXO Acquisition

C.H. Robinson Worldwide Stock Down 10.8%

CHRW stock opened at $140.61 on Tuesday. C.H. Robinson Worldwide has a 52 week low of $123.64 and a 52 week high of $210.33. The business has a 50-day simple moving average of $149.89 and a 200 day simple moving average of $169.70. The company has a quick ratio of 1.58, a current ratio of 1.58 and a debt-to-equity ratio of 1.04. The company has a market cap of $16.43 billion, a PE ratio of 26.83, a price-to-earnings-growth ratio of 1.32 and a beta of 0.94.

C.H. Robinson Worldwide (NASDAQ:CHRW - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The transportation company reported $1.61 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.53 by $0.08. C.H. Robinson Worldwide had a net margin of 3.73% and a return on equity of 38.36%. The firm had revenue of $4.93 billion for the quarter, compared to the consensus estimate of $4.35 billion. During the same period in the prior year, the company posted $1.29 earnings per share. The business's revenue for the quarter was up 19.3% on a year-over-year basis. Sell-side analysts anticipate that C.H. Robinson Worldwide will post 6.19 EPS for the current fiscal year.

C.H. Robinson Worldwide Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, October 2nd. Investors of record on Friday, September 4th were given a dividend of $0.63 per share. This represents a $2.52 annualized dividend and a dividend yield of 1.8%. The ex-dividend date was Friday, September 4th. C.H. Robinson Worldwide's dividend payout ratio is currently 48.09%.

About C.H. Robinson Worldwide

C.H. Robinson Worldwide, Inc is a global third-party logistics provider that connects shippers with transportation carriers and other supply-chain service providers. The company helps businesses plan, manage and execute the movement of freight across domestic and international markets.

Its services include truckload and less-than-truckload freight brokerage, intermodal transportation, ocean and air freight forwarding, customs services, and transportation management. C.H. Robinson also provides technology and data-driven tools designed to improve shipment planning, visibility, routing and logistics performance.

Founded in 1905 and headquartered in Eden Prairie, Minnesota, C.H.

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