Covenant Logistics Group (NYSE:CVLG) Hits New 12-Month High - Should You Buy?

Key Points

• Covenant Logistics Group shares hit a new 52-week high, trading as high as $47.78 after closing at $46.22 the prior day.
• Wall Street sentiment has improved, with multiple analysts initiating or upgrading coverage; the stock now carries a consensus Buy rating and a $53.75 average price target.
• The company recently missed quarterly EPS expectations, while insiders sold shares over the past few months and institutional ownership remains high at 83.72%.

Covenant Logistics Group, Inc. (NYSE:CVLG - Get Free Report) shares reached a new 52-week high during trading on Wednesday . The company traded as high as $47.78 and last traded at $47.09, with a volume of 12703 shares trading hands. The stock had previously closed at $46.22.

Analyst Ratings Changes

CVLG has been the topic of several recent research reports. Stephens initiated coverage on Covenant Logistics Group in a research note on Wednesday, July 8th. They issued an "overweight" rating and a $60.00 price target on the stock. Citizens Jmp initiated coverage on Covenant Logistics Group in a research report on Wednesday. They set a "market outperform" rating and a $60.00 price objective for the company. Zacks Research raised Covenant Logistics Group from a "hold" rating to a "strong-buy" rating in a research report on Monday. TD Cowen boosted their target price on shares of Covenant Logistics Group from $30.00 to $35.00 and gave the company a "buy" rating in a report on Monday, April 27th. Finally, Wall Street Zen raised shares of Covenant Logistics Group from a "hold" rating to a "buy" rating in a research report on Sunday. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Buy" and a consensus price target of $53.75.

Covenant Logistics Group Price Performance

The company has a current ratio of 1.04, a quick ratio of 1.01 and a debt-to-equity ratio of 0.50. The company has a market cap of $1.18 billion, a PE ratio of 312.93 and a beta of 1.29. The firm has a 50 day moving average of $41.03 and a two-hundred day moving average of $32.26.

Covenant Logistics Group (NYSE:CVLG - Get Free Report) last posted its quarterly earnings data on Thursday, April 23rd. The company reported $0.26 earnings per share for the quarter, missing analysts' consensus estimates of $0.35 by ($0.09). Covenant Logistics Group had a net margin of 0.42% and a return on equity of 9.41%. The company had revenue of $307.16 million for the quarter. Research analysts predict that Covenant Logistics Group, Inc. will post 1.6 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Joey B. Hogan sold 14,700 shares of the firm's stock in a transaction on Tuesday, April 28th. The stock was sold at an average price of $34.76, for a total transaction of $510,972.00. Following the completion of the transaction, the director directly owned 104,094 shares in the company, valued at $3,618,307.44. This trade represents a 12.37% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Joey Ballard sold 4,282 shares of the company's stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $37.40, for a total transaction of $160,146.80. Following the completion of the transaction, the executive vice president owned 20,867 shares in the company, valued at approximately $780,425.80. The trade was a 17.03% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 42,150 shares of company stock worth $1,566,515 over the last three months. 36.70% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Covenant Logistics Group

A number of institutional investors have recently made changes to their positions in the company. Quarry LP bought a new position in Covenant Logistics Group in the 3rd quarter valued at approximately $33,000. BNP Paribas Financial Markets increased its holdings in shares of Covenant Logistics Group by 45.3% in the 2nd quarter. BNP Paribas Financial Markets now owns 1,562 shares of the company's stock worth $38,000 after purchasing an additional 487 shares in the last quarter. Raymond James Financial Inc. purchased a new position in shares of Covenant Logistics Group in the second quarter worth $39,000. Tower Research Capital LLC TRC lifted its holdings in shares of Covenant Logistics Group by 127.1% during the second quarter. Tower Research Capital LLC TRC now owns 1,971 shares of the company's stock valued at $48,000 after purchasing an additional 1,103 shares in the last quarter. Finally, State of Alaska Department of Revenue lifted its holdings in shares of Covenant Logistics Group by 204.6% during the fourth quarter. State of Alaska Department of Revenue now owns 3,515 shares of the company's stock valued at $77,000 after purchasing an additional 2,361 shares in the last quarter. Hedge funds and other institutional investors own 83.72% of the company's stock.

About Covenant Logistics Group

Covenant Logistics Group provides a comprehensive suite of transportation and logistics services across North America. The company's core offerings include less‐than‐truckload (LTL) and full truckload hauling, temperature‐controlled freight, intermodal transportation and freight brokerage. Covenant also delivers specialized solutions such as expedited “hot‐shot” deliveries, cross‐border shipping to Canada and Mexico, and dedicated contract carriage for time‐sensitive or high‐value shipments.

With a network of service centers, terminals and partner carriers strategically located throughout the United States, Covenant supports diverse industries including food and beverage, automotive, retail, energy and manufacturing.

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