Covenant Logistics Group (NYSE:CVLG) Trading 5.7% Higher - What's Next?

Key Points

• Shares jumped 5.7% on Friday to $32.96 (intraday high $33.16) but the move occurred on thin volume — ~16,012 shares vs. a 159,843 average.
• Covenant missed quarterly EPS expectations ($0.26 vs. $0.35) on $307.2M revenue, and Wall Street's consensus rating is Hold with an average target of $30 and a P/E near 153.
• Insiders have been net sellers (CEO sold 30,400 shares; insiders sold 438,800 shares worth ~$12.8M over three months) even as institutional ownership is high (83.72%) and several funds (Goldman, AQR, RBC) increased positions.

Shares of Covenant Logistics Group, Inc. (NYSE:CVLG - Get Free Report) rose 5.7% on Friday . The stock traded as high as $33.16 and last traded at $32.96. Approximately 16,012 shares changed hands during mid-day trading, a decline of 90% from the average daily volume of 159,843 shares. The stock had previously closed at $31.19.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on CVLG shares. Weiss Ratings reiterated a "hold (c)" rating on shares of Covenant Logistics Group in a research note on Friday, January 9th. Zacks Research upgraded shares of Covenant Logistics Group from a "strong sell" rating to a "hold" rating in a research note on Friday, April 3rd. Finally, Wall Street Zen cut shares of Covenant Logistics Group from a "buy" rating to a "hold" rating in a report on Sunday, March 8th. One equities research analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $30.00.

Covenant Logistics Group Stock Up 8.0%

The firm has a 50 day simple moving average of $28.02 and a two-hundred day simple moving average of $24.53. The company has a debt-to-equity ratio of 0.59, a quick ratio of 1.08 and a current ratio of 1.11. The stock has a market cap of $844.44 million, a P/E ratio of 153.05 and a beta of 1.15.

Covenant Logistics Group (NYSE:CVLG - Get Free Report) last released its quarterly earnings results on Thursday, April 23rd. The company reported $0.26 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.35 by ($0.09). The business 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%. Equities research analysts predict that Covenant Logistics Group, Inc. will post 1.7 earnings per share for the current year.

Insiders Place Their Bets

In related news, CEO David Ray Parker sold 30,400 shares of the stock in a transaction dated Friday, February 20th. The shares were sold at an average price of $29.18, for a total value of $887,072.00. Following the completion of the transaction, the chief executive officer owned 2,047,544 shares in the company, valued at $59,747,333.92. This represents a 1.46% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Insiders have sold a total of 438,800 shares of company stock valued at $12,826,748 over the last three months. Corporate insiders own 36.70% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in CVLG. Royal Bank of Canada raised its holdings 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 purchasing an additional 11,454 shares in the last quarter. AQR Capital Management LLC increased its position in shares of Covenant Logistics Group by 97.5% during the 1st quarter. AQR Capital Management LLC now owns 88,761 shares of the company's stock valued at $1,970,000 after purchasing an additional 43,816 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of Covenant Logistics Group by 108.3% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 9,586 shares of the company's stock valued at $213,000 after purchasing an additional 4,985 shares during the period. Goldman Sachs Group Inc. raised its position in Covenant Logistics Group by 161.8% in the first quarter. Goldman Sachs Group Inc. now owns 179,304 shares of the company's stock worth $3,981,000 after acquiring an additional 110,810 shares in the last quarter. Finally, Jane Street Group LLC lifted its holdings 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 acquiring an additional 4,743 shares during the last quarter. 83.72% of the stock is currently owned by institutional investors.

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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