Covenant Logistics Group (NYSE:CVLG) Stock Price Down 11.1% - Here's Why

Key Points

• Covenant Logistics shares fell 11.1% to about $36.89 in mid-day trading, with volume below the average session level.
• The company reported quarterly EPS of $0.42 on revenue of $332.87 million, while its net margin remained low at 0.42% and its price-to-earnings ratio stood at 241.53.
• Despite the sell-off, analysts maintain an overall “Buy” rating with an average price target of $53.75; however, insiders have sold 24,800 shares worth approximately $963,535 over the past three months.

Covenant Logistics Group, Inc. (NYSE:CVLG - Get Free Report) shares were down 11.1% during mid-day trading on Thursday . The company traded as low as $36.61 and last traded at $36.89. 156,347 shares traded hands during mid-day trading, a decline of 12% from the average session volume of 176,721 shares. The stock had previously closed at $41.50.

Analysts Set New Price Targets

A number of analysts have recently weighed in on CVLG shares. Citizens Jmp began coverage on Covenant Logistics Group in a research note on Wednesday, July 15th. They issued a "market outperform" rating and a $60.00 target price for the company. National Bank Financial set a $60.00 target price on Covenant Logistics Group in a research report on Wednesday, July 15th. Stephens began coverage on Covenant Logistics Group in a report on Wednesday, July 8th. They set an "overweight" rating and a $60.00 target price on the stock. Zacks Research upgraded Covenant Logistics Group from a "hold" rating to a "strong-buy" rating in a report on Monday, July 13th. Finally, TD Cowen lifted their price target on shares of Covenant Logistics Group from $30.00 to $35.00 and gave the company a "buy" rating in a research note on Monday, April 27th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Buy" and an average target price of $53.75.

Covenant Logistics Group Price Performance

The company has a quick ratio of 1.01, a current ratio of 1.04 and a debt-to-equity ratio of 0.50. The company's fifty day moving average is $43.86 and its 200 day moving average is $34.09. The firm has a market cap of $911.91 million, a price-to-earnings ratio of 241.53 and a beta of 1.29.

Covenant Logistics Group (NYSE:CVLG - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The company reported $0.42 earnings per share for the quarter. Covenant Logistics Group had a return on equity of 9.41% and a net margin of 0.42%.The company had revenue of $332.87 million during the quarter. On average, equities research analysts predict that Covenant Logistics Group, Inc. will post 1.6 EPS for the current year.

Insider Activity at Covenant Logistics Group

In other news, EVP Joey Ballard sold 4,000 shares of Covenant Logistics Group stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $40.15, for a total value of $160,600.00. Following the completion of the transaction, the executive vice president owned 13,149 shares of the company's stock, valued at $527,932.35. This trade represents a 23.32% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Joey B. Hogan sold 12,800 shares of the company's stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $39.18, for a total transaction of $501,504.00. Following the completion of the sale, the director directly owned 91,294 shares in the company, valued at approximately $3,576,898.92. The trade was a 12.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 24,800 shares of company stock valued at $963,535. 36.70% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

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