Covenant Logistics Group (NYSE:CVLG) Upgraded by Zacks Research to Strong-Buy Rating

Key Points

• Zacks Research upgraded Covenant Logistics Group from Hold to Strong-Buy, adding to a generally bullish analyst backdrop. The stock now carries an average Buy rating and an average target price of $47.50.
• Shares were trading around $46.39, near the 52-week high of $47.24 and well above the 52-week low of $18.00. The company has a market value of about $1.17 billion.
• The latest quarter showed mixed fundamentals: Covenant posted $0.26 EPS, missing estimates, on $307.16 million in revenue. Insiders also sold shares recently, while institutional investors own 83.72% of the stock.

Covenant Logistics Group (NYSE:CVLG - Get Free Report) was upgraded by equities researchers at Zacks Research from a "hold" rating to a "strong-buy" rating in a research report issued on Monday,Zacks.com reports.

Other research analysts have also issued research reports about the stock. TD Cowen boosted their price objective 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. Weiss Ratings lowered shares of Covenant Logistics Group from a "hold (c)" rating to a "hold (c-)" rating in a report on Tuesday, July 7th. Stephens assumed coverage on shares of Covenant Logistics Group in a research report on Wednesday, July 8th. They issued an "overweight" rating and a $60.00 price objective for the company. Citigroup initiated coverage on Covenant Logistics Group in a research note on Wednesday. They set an "outperform" rating on the stock. Finally, Wall Street Zen upgraded Covenant Logistics Group from a "hold" rating to a "buy" rating in a report on Sunday. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Buy" and an average target price of $47.50.

Covenant Logistics Group Trading Up 0.4%

NYSE:CVLG opened at $46.39 on Monday. The company has a current ratio of 1.04, a quick ratio of 1.01 and a debt-to-equity ratio of 0.50. Covenant Logistics Group has a 1-year low of $18.00 and a 1-year high of $47.24. The firm has a market capitalization of $1.17 billion, a price-to-earnings ratio of 309.27 and a beta of 1.29. The business's 50-day moving average price is $41.03 and its two-hundred day moving average price is $32.26.

Covenant Logistics Group (NYSE:CVLG - Get Free Report) last posted its 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 company had revenue of $307.16 million for the quarter. Covenant Logistics Group had a return on equity of 9.41% and a net margin of 0.42%. On average, equities analysts expect that Covenant Logistics Group will post 1.6 earnings per share for the current year.

Insider Activity

In related news, EVP Joey Ballard sold 4,282 shares of the business's stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $37.40, for a total value of $160,146.80. Following the sale, the executive vice president directly owned 20,867 shares of the company's stock, valued at approximately $780,425.80. The trade was a 17.03% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Joey B. Hogan sold 14,700 shares of the company'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 of the company's stock, valued at approximately $3,618,307.44. The trade was a 12.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 42,150 shares of company stock worth $1,566,515 over the last quarter. 36.70% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Covenant Logistics Group

A number of large investors have recently added to or reduced their stakes in the company. Quarry LP bought a new stake in shares of Covenant Logistics Group in the third quarter valued at about $33,000. BNP Paribas Financial Markets raised its position in Covenant Logistics Group by 45.3% in the 2nd quarter. BNP Paribas Financial Markets now owns 1,562 shares of the company's stock valued at $38,000 after buying an additional 487 shares during the last quarter. Raymond James Financial Inc. bought a new stake in Covenant Logistics Group in the 2nd quarter valued at approximately $39,000. Tower Research Capital LLC TRC lifted its stake in Covenant Logistics Group by 127.1% in the 2nd quarter. Tower Research Capital LLC TRC now owns 1,971 shares of the company's stock valued at $48,000 after acquiring an additional 1,103 shares in the last quarter. Finally, State of Alaska Department of Revenue boosted its position in Covenant Logistics Group by 204.6% during the 4th quarter. State of Alaska Department of Revenue now owns 3,515 shares of the company's stock worth $77,000 after acquiring an additional 2,361 shares during the last quarter. Institutional investors own 83.72% of the company's stock.

Covenant Logistics Group Company Profile

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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