Knight-Swift Transportation (NYSE:KNX) Shares Gap Down After Earnings Miss

Key Points

• Knight-Swift Transportation shares experienced a significant gap down from $47.39 to $45.46 following a quarterly earnings report that missed expectations, reporting $0.32 earnings per share compared to the anticipated $0.38.
• The company has declared a quarterly dividend of $0.18 per share, reflecting a 1.6% yield and a payout ratio of 70.59%.
• Multiple research firms have adjusted their target prices for the stock, with Barclays lowering it to $50, while others like TD Cowen and Stifel Nicolaus raised theirs to $53 and $52, respectively, indicating a mixed sentiment among analysts.

Knight-Swift Transportation Holdings Inc. (NYSE:KNX - Get Free Report)'s share price gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $47.39, but opened at $45.46. Knight-Swift Transportation shares last traded at $44.47, with a volume of 996,890 shares.

The transportation company reported $0.32 earnings per share for the quarter, missing the consensus estimate of $0.38 by ($0.06). The firm had revenue of $1.93 billion for the quarter, compared to analysts' expectations of $1.91 billion. Knight-Swift Transportation had a net margin of 2.22% and a return on equity of 3.03%. The business's quarterly revenue was up 2.7% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.34 EPS. Knight-Swift Transportation has set its Q4 2025 guidance at 0.340-0.400 EPS.

Knight-Swift Transportation Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, September 22nd. Shareholders of record on Friday, September 5th were issued a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a yield of 1.6%. The ex-dividend date was Friday, September 5th. Knight-Swift Transportation's dividend payout ratio (DPR) is currently 70.59%.

Wall Street Analysts Forecast Growth

KNX has been the subject of a number of recent research reports. Barclays dropped their target price on Knight-Swift Transportation from $55.00 to $50.00 and set an "overweight" rating for the company in a report on Thursday, October 2nd. TD Cowen lifted their target price on Knight-Swift Transportation from $44.00 to $53.00 and gave the stock a "buy" rating in a report on Thursday. Stifel Nicolaus lifted their target price on Knight-Swift Transportation from $45.00 to $52.00 and gave the stock a "buy" rating in a report on Thursday. Wells Fargo & Company dropped their target price on Knight-Swift Transportation from $50.00 to $48.00 and set an "overweight" rating for the company in a report on Monday, October 6th. Finally, Citigroup decreased their price target on Knight-Swift Transportation from $54.00 to $53.00 and set a "buy" rating for the company in a research note on Monday, October 13th. Two investment analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $53.29.

Insiders Place Their Bets

In other Knight-Swift Transportation news, EVP Michael K. Liu sold 3,420 shares of Knight-Swift Transportation stock in a transaction on Wednesday, September 3rd. The stock was sold at an average price of $43.41, for a total transaction of $148,462.20. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 3.00% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Knight-Swift Transportation

Institutional investors and hedge funds have recently bought and sold shares of the company. Larson Financial Group LLC raised its position in Knight-Swift Transportation by 9,383.3% during the 1st quarter. Larson Financial Group LLC now owns 569 shares of the transportation company's stock valued at $25,000 after purchasing an additional 563 shares in the last quarter. Brooklyn Investment Group raised its position in Knight-Swift Transportation by 93.4% during the 1st quarter. Brooklyn Investment Group now owns 642 shares of the transportation company's stock valued at $28,000 after purchasing an additional 310 shares in the last quarter. SJS Investment Consulting Inc. raised its position in Knight-Swift Transportation by 7,100.0% during the 3rd quarter. SJS Investment Consulting Inc. now owns 936 shares of the transportation company's stock valued at $37,000 after purchasing an additional 923 shares in the last quarter. Oliver Lagore Vanvalin Investment Group bought a new position in shares of Knight-Swift Transportation in the 2nd quarter worth $55,000. Finally, Employees Retirement System of Texas bought a new position in shares of Knight-Swift Transportation in the 2nd quarter worth $58,000. 88.77% of the stock is owned by institutional investors.

Knight-Swift Transportation Trading Down 6.7%

The stock has a market capitalization of $7.17 billion, a P/E ratio of 43.24, a price-to-earnings-growth ratio of 0.82 and a beta of 1.14. The company has a current ratio of 0.89, a quick ratio of 0.89 and a debt-to-equity ratio of 0.30. The company has a 50-day moving average price of $42.83 and a 200 day moving average price of $43.08.

Knight-Swift Transportation Company Profile

Knight-Swift Transportation Holdings Inc, together with its subsidiaries, provides freight transportation services in the United States and Mexico. The company operates through four segments: Truckload, Less-than-truckload (LTL), Logistics, and Intermodal. The Truckload segment provides transportation services, which include irregular route and dedicated, refrigerated, expedited, flatbed, and cross-border operations.

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