Old Dominion Freight Line, Inc. Plans Quarterly Dividend of $0.29 (NASDAQ:ODFL)

Key Points

• Old Dominion Freight Line announced a quarterly dividend of $0.29 per share, payable on September 16 to shareholders of record as of September 2. The dividend implies an annualized yield of about 0.5%.
• The company has a solid dividend track record, having raised its payout annually for the last five consecutive years, with a low 19.3% payout ratio that suggests earnings comfortably cover the dividend.
• In its latest quarter, Old Dominion beat analyst expectations with $1.14 EPS on $1.33 billion in revenue, though revenue was still down 2.9% year over year. The stock was down about 0.9% in Thursday trading.

Old Dominion Freight Line, Inc. (NASDAQ:ODFL - Get Free Report) announced a quarterly dividend on Thursday, July 23rd. Shareholders of record on Wednesday, September 2nd will be given a dividend of 0.29 per share by the transportation company on Wednesday, September 16th. This represents a c) annualized dividend and a yield of 0.5%. The ex-dividend date is Wednesday, September 2nd.

Old Dominion Freight Line has raised its dividend by an average of 0.3%per year over the last three years and has increased its dividend annually for the last 5 consecutive years. Old Dominion Freight Line has a dividend payout ratio of 19.3% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Old Dominion Freight Line to earn $6.50 per share next year, which means the company should continue to be able to cover its $1.16 annual dividend with an expected future payout ratio of 17.8%.

Old Dominion Freight Line Stock Down 0.9%

ODFL stock traded down $2.09 during trading on Thursday, hitting $230.71. 898,151 shares of the company's stock traded hands, compared to its average volume of 2,093,152. The stock has a market capitalization of $47.98 billion, a price-to-earnings ratio of 48.27, a price-to-earnings-growth ratio of 4.24 and a beta of 1.18. Old Dominion Freight Line has a 52 week low of $126.01 and a 52 week high of $252.03. The stock has a fifty day moving average price of $224.26 and a two-hundred day moving average price of $204.07.

Old Dominion Freight Line (NASDAQ:ODFL - Get Free Report) last posted its quarterly earnings results on Wednesday, April 29th. The transportation company reported $1.14 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.05 by $0.09. Old Dominion Freight Line had a net margin of 18.46% and a return on equity of 23.42%. The company had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.31 billion. During the same period last year, the firm posted $1.19 EPS. The company's revenue for the quarter was down 2.9% on a year-over-year basis. As a group, equities research analysts expect that Old Dominion Freight Line will post 5.56 EPS for the current fiscal year.

Insider Transactions at Old Dominion Freight Line

In other Old Dominion Freight Line news, Director Greg C. Gantt sold 22,107 shares of the company's stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $191.52, for a total value of $4,233,932.64. Following the completion of the transaction, the director owned 88,551 shares in the company, valued at approximately $16,959,287.52. This represents a 19.98% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 10.00% of the stock is owned by insiders.

Hedge Funds Weigh In On Old Dominion Freight Line

Several hedge funds and other institutional investors have recently made changes to their positions in ODFL. Norges Bank bought a new stake in shares of Old Dominion Freight Line during the fourth quarter valued at about $444,983,000. Boston Partners acquired a new stake in Old Dominion Freight Line in the third quarter worth about $292,599,000. Price T Rowe Associates Inc. MD grew its position in Old Dominion Freight Line by 14.1% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 14,223,960 shares of the transportation company's stock valued at $2,230,318,000 after buying an additional 1,761,511 shares in the last quarter. Two Sigma Investments LP lifted its stake in shares of Old Dominion Freight Line by 637.5% in the 3rd quarter. Two Sigma Investments LP now owns 1,576,470 shares of the transportation company's stock worth $221,935,000 after acquiring an additional 1,362,697 shares during the period. Finally, Life Cycle Investment Partners Ltd acquired a new stake in shares of Old Dominion Freight Line in the 4th quarter worth approximately $188,651,000. 77.82% of the stock is currently owned by institutional investors and hedge funds.

Old Dominion Freight Line Company Profile

Old Dominion Freight Line is a U.S.-based less-than-truckload (LTL) transportation company that provides regional, inter-regional and national freight services. Founded in 1934 and headquartered in Thomasville, North Carolina, the company has grown from a regional carrier into a national freight network, operating a broad system of service centers and terminals to move shipments for shippers of varying sizes and industries.

The company's core business is LTL trucking, offering scheduled pickup and delivery for palletized freight that does not require a full truckload.

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