Covenant Logistics Group (NYSE:CVLG) Releases Earnings Results, Misses Expectations By $0.09 EPS

Key Points

• Covenant reported Q1 EPS of $0.26, missing the Street by $0.09 (consensus $0.35), on revenue of $307.16 million while posting a low net margin (0.62%) and ROE of 9.7%.
• Shares rose to $31.15 after the report, but the stock still trades at a high PE of 141.6 with a MarketBeat consensus rating of Hold and a $30.00 target price.
• Insiders have been active sellers — the CEO sold 30,400 shares and insiders unloaded 438,800 shares over 90 days — even as institutional ownership is high (83.72%) and several funds increased their stakes.

Covenant Logistics Group (NYSE:CVLG - Get Free Report) released its quarterly earnings results on Thursday. The company reported $0.26 earnings per share for the quarter, missing analysts' consensus estimates of $0.35 by ($0.09), Zacks reports. The firm had revenue of $307.16 million during the quarter. Covenant Logistics Group had a return on equity of 9.70% and a net margin of 0.62%.

Covenant Logistics Group Price Performance

Shares of CVLG traded up $0.15 on Thursday, reaching $31.15. The stock had a trading volume of 227,791 shares, compared to its average volume of 161,719. The firm has a market capitalization of $781.24 million, a PE ratio of 141.60 and a beta of 1.15. The company has a quick ratio of 1.08, a current ratio of 1.11 and a debt-to-equity ratio of 0.59. The firm has a 50-day moving average of $27.96 and a 200 day moving average of $24.49. Covenant Logistics Group has a twelve month low of $18.00 and a twelve month high of $31.81.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on the company. Zacks Research upgraded Covenant Logistics Group from a "strong sell" rating to a "hold" rating in a report on Friday, April 3rd. Wall Street Zen cut Covenant Logistics Group from a "buy" rating to a "hold" rating in a report on Sunday, March 8th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Covenant Logistics Group in a report on Friday, January 9th. One equities research analyst has rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $30.00.

Insider Transactions at Covenant Logistics Group

In related news, CEO David Ray Parker sold 30,400 shares of the company's stock in a transaction that occurred on Friday, February 20th. The stock was sold at an average price of $29.18, for a total value of $887,072.00. Following the sale, the chief executive officer owned 2,047,544 shares of the company's stock, valued at approximately $59,747,333.92. This represents a 1.46% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Over the last 90 days, insiders sold 438,800 shares of company stock valued at $12,826,748. 36.70% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Covenant Logistics Group

A number of institutional investors and hedge funds have recently bought and sold shares of CVLG. Royal Bank of Canada lifted its stake in Covenant Logistics Group by 90.5% in the 1st quarter. Royal Bank of Canada now owns 24,108 shares of the company's stock valued at $535,000 after buying an additional 11,454 shares in the last quarter. AQR Capital Management LLC lifted its stake in Covenant Logistics Group by 97.5% in the 1st quarter. AQR Capital Management LLC now owns 88,761 shares of the company's stock valued at $1,970,000 after buying an additional 43,816 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in Covenant Logistics Group by 108.3% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 9,586 shares of the company's stock valued at $213,000 after buying an additional 4,985 shares in the last quarter. Goldman Sachs Group Inc. lifted its stake in Covenant Logistics Group by 161.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 179,304 shares of the company's stock valued at $3,981,000 after buying an additional 110,810 shares in the last quarter. Finally, Jane Street Group LLC lifted its stake in Covenant Logistics Group by 27.6% in the 1st quarter. Jane Street Group LLC now owns 21,937 shares of the company's stock valued at $487,000 after buying an additional 4,743 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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