Covenant Logistics Group (NYSE:CVLG) Shares Gap Down on Disappointing Earnings

Key Points

• Covenant Logistics Group shares gapped down after reporting quarterly earnings, with an EPS of $0.44, which missed the consensus estimate of $0.45.
• The company declared a quarterly dividend of $0.07, yielding 1.3%, with a payout ratio of 21.37%.
• Investment analysts have downgraded the stock, with a consensus rating of "Hold" and an average target price of $33.00.

Covenant Logistics Group, Inc. (NYSE:CVLG - Get Free Report)'s share price gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $21.88, but opened at $20.71. Covenant Logistics Group shares last traded at $21.49, with a volume of 20,949 shares changing hands.

The company reported $0.44 EPS for the quarter, missing the consensus estimate of $0.45 by ($0.01). Covenant Logistics Group had a net margin of 3.18% and a return on equity of 11.63%. The firm had revenue of $296.89 million during the quarter.

Covenant Logistics Group Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, September 26th. Stockholders of record on Friday, September 5th were paid a $0.07 dividend. This represents a $0.28 annualized dividend and a dividend yield of 1.3%. Covenant Logistics Group's dividend payout ratio is presently 21.37%.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on CVLG shares. Weiss Ratings restated a "hold (c)" rating on shares of Covenant Logistics Group in a research note on Tuesday, October 14th. Zacks Research downgraded shares of Covenant Logistics Group from a "hold" rating to a "strong sell" rating in a research report on Friday, October 10th. Finally, Wall Street Zen downgraded shares of Covenant Logistics Group from a "buy" rating to a "hold" rating in a research report on Saturday, August 30th. Two investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $33.00.

Institutional Trading of Covenant Logistics Group

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. KLP Kapitalforvaltning AS raised its holdings in Covenant Logistics Group by 603.8% during the 3rd quarter. KLP Kapitalforvaltning AS now owns 18,300 shares of the company's stock worth $396,000 after purchasing an additional 15,700 shares during the last quarter. Copeland Capital Management LLC raised its holdings in Covenant Logistics Group by 57.7% during the 3rd quarter. Copeland Capital Management LLC now owns 5,492 shares of the company's stock worth $119,000 after purchasing an additional 2,010 shares during the last quarter. Inspire Investing LLC raised its holdings in Covenant Logistics Group by 30.7% during the 3rd quarter. Inspire Investing LLC now owns 21,017 shares of the company's stock worth $455,000 after purchasing an additional 4,934 shares during the last quarter. Ranger Investment Management L.P. bought a new stake in Covenant Logistics Group during the 2nd quarter worth about $4,450,000. Finally, Hudson Bay Capital Management LP raised its holdings in Covenant Logistics Group by 20.4% during the 2nd quarter. Hudson Bay Capital Management LP now owns 132,459 shares of the company's stock worth $3,194,000 after purchasing an additional 22,459 shares during the last quarter. 83.72% of the stock is owned by institutional investors.

Covenant Logistics Group Trading Down 2.1%

The company has a current ratio of 1.09, a quick ratio of 1.06 and a debt-to-equity ratio of 0.52. The company has a market capitalization of $535.68 million, a P/E ratio of 16.34 and a beta of 1.39. The business has a 50 day moving average price of $22.71 and a 200 day moving average price of $22.64.

About Covenant Logistics Group

Covenant Logistics Group, Inc, together with its subsidiaries, provides transportation and logistics services in the United States. It operates through four segments: Expedited, Dedicated, Managed Freight, and Warehousing. The Expedited segment primarily provides truckload services with high service freight and delivery standards, such as 1,000 miles in 22 hours or 15-minute delivery windows.

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