Rush Enterprises, Inc. (RUSHA) - What Are Brokerages Thinking About This Stock?

Key Points

• Analyst sentiment is mixed: Five analysts give Rush Enterprises an average “Hold” rating, with three buys, one hold and one sell. The average 12-month price target is $46.00.
• Rush Enterprises exceeded quarterly expectations, reporting $0.40 in earnings per share versus the $0.38 consensus estimate and $1.90 billion in revenue. Analysts project full-year EPS of $2.43.
• The company reduced its quarterly dividend to $0.14 from $0.19, resulting in an annualized yield of about 1.2%; meanwhile, insiders sold approximately $9.1 million of stock during the quarter, while institutional investors own 84.43% of shares.

Rush Enterprises, Inc. (NASDAQ:RUSHA - Get Free Report) has been given an average rating of "Hold" by the five analysts that are presently covering the firm, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell recommendation, one has assigned a hold recommendation and three have issued a buy recommendation on the company. The average 1 year price target among brokers that have covered the stock in the last year is $46.00.

Several research firms have commented on RUSHA. Zacks Research lowered Rush Enterprises from a "hold" rating to a "strong sell" rating in a research note on Wednesday, September 2nd. Stephens increased their target price on Rush Enterprises from $40.00 to $42.22 and gave the company an "overweight" rating in a report on Thursday, July 30th. Wall Street Zen downgraded Rush Enterprises from a "buy" rating to a "hold" rating in a research report on Sunday, October 11th. Weiss Ratings raised Rush Enterprises from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, July 23rd. Finally, UBS Group reaffirmed a "neutral" rating and issued a $56.67 price target (up from $52.00) on shares of Rush Enterprises in a research note on Tuesday, August 25th.

Rush Enterprises Stock Down 0.7%

Shares of NASDAQ RUSHA opened at $45.06 on Tuesday. The company's 50-day simple moving average is $49.03 and its 200-day simple moving average is $38.14. Rush Enterprises has a 52-week low of $30.45 and a 52-week high of $55.74. The firm has a market cap of $5.26 billion, a price-to-earnings ratio of 20.36, a price-to-earnings-growth ratio of 1.63 and a beta of 0.92. The company has a quick ratio of 0.38, a current ratio of 1.45 and a debt-to-equity ratio of 0.16.

Rush Enterprises (NASDAQ:RUSHA - Get Free Report) last released its quarterly earnings results on Tuesday, July 28th. The company reported $0.40 earnings per share for the quarter, topping the consensus estimate of $0.38 by $0.02. The firm had revenue of $1.90 billion during the quarter, compared to the consensus estimate of $1.89 billion. Rush Enterprises had a net margin of 3.67% and a return on equity of 11.65%. Equities analysts predict that Rush Enterprises will post 2.43 EPS for the current fiscal year.

Rush Enterprises Cuts Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 24th. Shareholders of record on Wednesday, September 9th were issued a $0.14 dividend. This represents a $0.56 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date was Wednesday, September 9th. This is a decrease from Rush Enterprises's previous quarterly dividend of $0.19. Rush Enterprises's payout ratio is 25.34%.

Insider Transactions at Rush Enterprises

In other news, Director Michael McRoberts sold 14,625 shares of the company's stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $36.20, for a total transaction of $529,360.00. Following the completion of the sale, the director owned 36,514 shares of the company's stock, valued at $1,321,644.52. This represents a 28.60% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Michael L. Goldstone sold 5,400 shares of the stock in a transaction dated Thursday, July 30th. The shares were sold at an average price of $36.02, for a total transaction of $194,520.00. Following the completion of the sale, the senior vice president owned 28,327 shares of the company's stock, valued at $1,020,401.49. This trade represents a 16.01% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 252,561 shares of company stock worth $9,092,298. Company insiders own 12.68% of the company's stock.

Hedge Funds Weigh In On Rush Enterprises

Several hedge funds and other institutional investors have recently modified their holdings of RUSHA. State Street Corp grew its stake in Rush Enterprises by 4.1% during the 2nd quarter. State Street Corp now owns 2,430,986 shares of the company's stock valued at $177,426,000 after acquiring an additional 96,418 shares in the last quarter. Jennison Associates LLC raised its holdings in Rush Enterprises by 166.4% in the 1st quarter. Jennison Associates LLC now owns 1,121,450 shares of the company's stock valued at $74,139,000 after acquiring an additional 700,511 shares during the last quarter. Janus Henderson Group PLC raised its holdings in Rush Enterprises by 83.9% in the 1st quarter. Janus Henderson Group PLC now owns 724,410 shares of the company's stock valued at $47,920,000 after acquiring an additional 330,553 shares during the last quarter. Bank of America Corp DE raised its holdings in Rush Enterprises by 9.5% in the 1st quarter. Bank of America Corp DE now owns 566,287 shares of the company's stock valued at $37,437,000 after acquiring an additional 49,009 shares during the last quarter. Finally, Principal Financial Group Inc. lifted its stake in Rush Enterprises by 21.5% in the 1st quarter. Principal Financial Group Inc. now owns 351,697 shares of the company's stock worth $23,251,000 after purchasing an additional 62,117 shares in the last quarter. 84.43% of the stock is owned by hedge funds and other institutional investors.

Rush Enterprises Company Profile

Rush Enterprises, Inc is a commercial vehicle solutions provider operating through the Rush Truck Centers network. The company sells new and used commercial trucks, including vehicles from manufacturers such as Peterbilt, International, Hino, Isuzu and Ford, along with related buses and specialty vehicles in selected markets.

In addition to vehicle sales, Rush provides parts, maintenance and repair services through its dealership network. Its offerings also include truck leasing and rentals, collision repair, mobile service, aftermarket products, and fleet-management and technology solutions designed to support commercial transportation operators.

Founded in 1965 and headquartered in New Braunfels, Texas, Rush has expanded from its original Peterbilt dealership into one of the largest commercial vehicle dealership networks in the United States.

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