Knight-Swift Transportation (NYSE:KNX) Posts Earnings Results, Misses Estimates By $0.20 EPS

Key Points

• Knight-Swift reported quarterly EPS of $0.09, missing consensus of $0.29 by $0.20, with a slim net margin of 0.88% and return on equity of 2.88%.
• The company raised its quarterly dividend to $0.20 (annualized $0.80, 1.3% yield), but the payout ratio is an elevated 195.12%, signaling possible sustainability concerns.
• Shares traded down about 1.5% to $63.89 after the print; insiders have been net sellers (42,930 shares sold over 90 days) while the stock carries a high P/E of 155.84 and a market cap of $10.38 billion.

Knight-Swift Transportation (NYSE:KNX - Get Free Report) released its quarterly earnings results on Wednesday. The transportation company reported $0.09 earnings per share for the quarter, missing analysts' consensus estimates of $0.29 by ($0.20), FiscalAI reports. Knight-Swift Transportation had a return on equity of 2.88% and a net margin of 0.88%.

Knight-Swift Transportation Trading Down 1.5%

Knight-Swift Transportation stock traded down $0.97 during trading on Wednesday, hitting $63.89. The company's stock had a trading volume of 2,186,816 shares, compared to its average volume of 3,223,340. The stock has a market capitalization of $10.38 billion, a price-to-earnings ratio of 155.84, a P/E/G ratio of 1.00 and a beta of 1.11. The stock's fifty day moving average is $58.81 and its 200 day moving average is $53.30. Knight-Swift Transportation has a 1-year low of $37.76 and a 1-year high of $66.61. The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.86 and a current ratio of 0.86.

Knight-Swift Transportation Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, March 23rd. Investors of record on Friday, March 6th were paid a $0.20 dividend. The ex-dividend date was Friday, March 6th. This is an increase from Knight-Swift Transportation's previous quarterly dividend of $0.18. This represents a $0.80 annualized dividend and a yield of 1.3%. Knight-Swift Transportation's payout ratio is currently 195.12%.

Insiders Place Their Bets

In related news, CFO Joshua Smith sold 5,770 shares of the company's stock in a transaction on Thursday, February 26th. The stock was sold at an average price of $60.91, for a total value of $351,450.70. Following the completion of the transaction, the chief financial officer directly owned 9,214 shares in the company, valued at approximately $561,224.74. This represents a 38.51% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, EVP Michael K. Liu sold 1,243 shares of the business's stock in a transaction dated Wednesday, February 4th. The shares were sold at an average price of $60.87, for a total value of $75,661.41. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 42,930 shares of company stock valued at $2,581,186. 2.90% of the stock is owned by company insiders.

Hedge Funds Weigh In On Knight-Swift Transportation

Hedge funds and other institutional investors have recently modified their holdings of the company. Compound Planning Inc. acquired a new position in Knight-Swift Transportation during the fourth quarter valued at approximately $243,000. Guggenheim Capital LLC acquired a new stake in shares of Knight-Swift Transportation in the fourth quarter worth $242,000. Parallel Advisors LLC increased its position in shares of Knight-Swift Transportation by 7.9% in the fourth quarter. Parallel Advisors LLC now owns 4,240 shares of the transportation company's stock worth $222,000 after acquiring an additional 309 shares in the last quarter. CHICAGO TRUST Co NA purchased a new position in shares of Knight-Swift Transportation in the 4th quarter valued at $221,000. Finally, Blair William & Co. IL purchased a new position in shares of Knight-Swift Transportation in the 4th quarter valued at $220,000. 88.77% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of equities analysts have recently weighed in on KNX shares. Citigroup raised Knight-Swift Transportation from a "neutral" rating to a "buy" rating and set a $64.00 price target for the company in a report on Friday, March 13th. Evercore raised Knight-Swift Transportation from an "in-line" rating to an "outperform" rating and set a $65.00 price target for the company in a report on Friday, March 27th. JPMorgan Chase & Co. boosted their price target on Knight-Swift Transportation from $49.00 to $61.00 and gave the stock a "neutral" rating in a report on Monday, January 12th. Susquehanna boosted their price target on Knight-Swift Transportation from $60.00 to $72.00 and gave the stock a "neutral" rating in a report on Wednesday. Finally, Benchmark upped their target price on Knight-Swift Transportation from $65.00 to $70.00 and gave the company a "buy" rating in a research note on Wednesday, April 15th. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $62.78.

Knight-Swift Transportation Company Profile

Knight-Swift Transportation Holdings Inc NYSE: KNX is one of North America's largest asset-based truckload carriers, offering a wide range of transportation and logistics services. The company was formed in 2017 through the merger of Knight Transportation and Swift Transportation, each with decades of experience in long-haul dry van and refrigerated freight. Since the merger, Knight-Swift has pursued a growth strategy that includes fleet expansions, targeted acquisitions, and investments in technology to enhance service reliability and network efficiency.

The company's core business activities include full truckload operations for dry van, temperature-controlled and flatbed shipments.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.