Forward Air (NASDAQ:FWRD) Shares Down 15.6% - Here's Why

Key Points

• Shares plunged 15.6% on Monday to about $18–$18.50 (intraday low $18.50), with mid-day volume of 175,296 shares—roughly 73% below the average session volume.
• Forward Air reported Q4 EPS of ($0.28), missing the consensus by $0.01 while revenue of $631.23M slightly beat estimates; the company remains unprofitable with a negative net margin (‑4.32%) and negative ROE (‑42.67%).
• Analysts are mixed (three Buys, two Sells) with a consensus rating of "Hold" and a $36 target, amid recent downgrades from Zacks and Weiss, and institutional investors hold about 97% of the stock.

Forward Air Corporation (NASDAQ:FWRD - Get Free Report)'s stock price traded down 15.6% on Monday . The company traded as low as $18.50 and last traded at $17.9930. 175,296 shares traded hands during mid-day trading, a decline of 73% from the average session volume of 647,343 shares. The stock had previously closed at $21.33.

Analysts Set New Price Targets

A number of analysts have recently weighed in on the stock. Zacks Research lowered shares of Forward Air from a "hold" rating to a "strong sell" rating in a research note on Tuesday, January 13th. Susquehanna reiterated a "positive" rating and issued a $42.00 price objective on shares of Forward Air in a research note on Tuesday, February 24th. Weiss Ratings reiterated a "sell (e+)" rating on shares of Forward Air in a research note on Tuesday, April 21st. Finally, Stifel Nicolaus cut their price objective on shares of Forward Air from $31.00 to $30.00 and set a "buy" rating on the stock in a research note on Thursday, April 16th. Three equities research analysts have rated the stock with a Buy rating and two have assigned a Sell rating to the stock. According to MarketBeat, Forward Air currently has an average rating of "Hold" and a consensus target price of $36.00.

Forward Air Trading Down 22.5%

The company has a debt-to-equity ratio of 10.58, a current ratio of 1.22 and a quick ratio of 1.22. The firm has a market capitalization of $536.11 million, a PE ratio of -4.70 and a beta of 1.59. The company's fifty day simple moving average is $20.24 and its 200-day simple moving average is $23.01.

Forward Air (NASDAQ:FWRD - Get Free Report) last posted its quarterly earnings data on Monday, February 23rd. The transportation company reported ($0.28) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.27) by ($0.01). The company had revenue of $631.23 million for the quarter, compared to analysts' expectations of $629.60 million. Forward Air had a negative net margin of 4.32% and a negative return on equity of 42.67%. The business's revenue for the quarter was up 1.2% on a year-over-year basis. During the same period in the previous year, the business earned ($1.23) earnings per share. As a group, sell-side analysts expect that Forward Air Corporation will post -0.47 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Forward Air

Several hedge funds and other institutional investors have recently modified their holdings of the business. Vanguard Group Inc. lifted its stake in shares of Forward Air by 15.1% in the third quarter. Vanguard Group Inc. now owns 2,353,608 shares of the transportation company's stock worth $60,347,000 after buying an additional 307,906 shares in the last quarter. Ancora Advisors LLC lifted its stake in shares of Forward Air by 8.5% in the third quarter. Ancora Advisors LLC now owns 1,475,055 shares of the transportation company's stock worth $37,820,000 after buying an additional 116,012 shares in the last quarter. State Street Corp lifted its stake in shares of Forward Air by 2.1% in the fourth quarter. State Street Corp now owns 949,784 shares of the transportation company's stock worth $23,745,000 after buying an additional 19,854 shares in the last quarter. Melqart Asset Management UK Ltd lifted its stake in shares of Forward Air by 122.3% in the fourth quarter. Melqart Asset Management UK Ltd now owns 849,876 shares of the transportation company's stock worth $21,247,000 after buying an additional 467,482 shares in the last quarter. Finally, Cibc World Market Inc. lifted its stake in shares of Forward Air by 3.8% in the fourth quarter. Cibc World Market Inc. now owns 784,731 shares of the transportation company's stock worth $19,618,000 after buying an additional 28,693 shares in the last quarter. 97.03% of the stock is owned by hedge funds and other institutional investors.

About Forward Air

Forward Air Corporation is a leading North American provider of expedited ground transportation and related logistics services, specializing in time-sensitive shipments. The company offers a comprehensive suite of solutions including less-than-truckload (LTL) expedited freight, consolidation and distribution services, container drayage, and final-mile delivery. By integrating transportation management with warehousing, inventory control, and technology-driven tracking, Forward Air supports customers across a variety of industries such as manufacturing, retail, automotive and chemicals.

Founded in 1981 and headquartered in Greeneville, Tennessee, Forward Air has developed a broad network of service centers, terminals and rail ramps throughout the United States, Canada and Puerto Rico.

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