Old Dominion Freight Line (NASDAQ:ODFL) Shares Gap Up After Dividend Announcement

Key Points

• Old Dominion Freight Line's shares opened at $173.37 after the company announced a dividend of $0.28 per share, to be paid on September 17th.
• The company currently has a dividend yield of 0.67% and a payout ratio of 21.01%.
• Analysts have a consensus rating of "Hold" for Old Dominion Freight Line, with a target price averaging $174.85.
• Institutional investors own 77.82% of Old Dominion Freight Line's stock, reflecting increased interest in the company from major financial players.

Shares of Old Dominion Freight Line, Inc. (NASDAQ:ODFL - Get Free Report) gapped up prior to trading on Friday after the company announced a dividend. The stock had previously closed at $167.79, but opened at $173.37. Old Dominion Freight Line shares last traded at $167.05, with a volume of 140,023 shares traded. The newly announced dividend which will be paid on Wednesday, September 17th. Stockholders of record on Wednesday, September 3rd will be issued a dividend of $0.28 per share. This represents a $1.12 dividend on an annualized basis and a dividend yield of 0.67%. Old Dominion Freight Line's dividend payout ratio is presently 21.01%.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on ODFL. Citigroup upgraded Old Dominion Freight Line from a "neutral" rating to a "buy" rating and lowered their price target for the stock from $186.00 to $183.00 in a report on Tuesday, April 8th. Wall Street Zen upgraded Old Dominion Freight Line from a "sell" rating to a "hold" rating in a report on Friday, May 30th. Bank of America raised their target price on Old Dominion Freight Line from $167.00 to $183.00 and gave the company a "neutral" rating in a report on Friday, May 16th. Raymond James Financial set a $185.00 target price on Old Dominion Freight Line and gave the company an "outperform" rating in a report on Thursday, April 24th. Finally, Robert W. Baird started coverage on Old Dominion Freight Line in a research report on Tuesday, July 1st. They issued a "neutral" rating and a $164.00 price target on the stock. One analyst has rated the stock with a sell rating, fifteen have issued a hold rating and seven have assigned a buy rating to the company. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $174.85.

Old Dominion Freight Line Stock Performance

The firm has a fifty day moving average of $163.63 and a 200-day moving average of $169.76. The stock has a market capitalization of $35.40 billion, a price-to-earnings ratio of 31.38, a PEG ratio of 3.34 and a beta of 1.25. The company has a quick ratio of 1.32, a current ratio of 1.32 and a debt-to-equity ratio of 0.01.

Old Dominion Freight Line (NASDAQ:ODFL - Get Free Report) last released its quarterly earnings results on Wednesday, April 23rd. The transportation company reported $1.19 earnings per share for the quarter, topping analysts' consensus estimates of $1.14 by $0.05. Old Dominion Freight Line had a return on equity of 27.40% and a net margin of 20.04%. The company had revenue of $1.37 billion during the quarter, compared to analysts' expectations of $1.38 billion. During the same period in the previous year, the firm posted $1.34 earnings per share. The business's revenue for the quarter was down 5.8% compared to the same quarter last year. As a group, sell-side analysts anticipate that Old Dominion Freight Line, Inc. will post 5.68 EPS for the current year.

Hedge Funds Weigh In On Old Dominion Freight Line

Institutional investors have recently added to or reduced their stakes in the business. Ameriprise Financial Inc. increased its stake in Old Dominion Freight Line by 2.9% in the fourth quarter. Ameriprise Financial Inc. now owns 1,267,640 shares of the transportation company's stock valued at $223,281,000 after purchasing an additional 35,778 shares during the last quarter. GAMMA Investing LLC grew its position in Old Dominion Freight Line by 48.7% during the first quarter. GAMMA Investing LLC now owns 3,109 shares of the transportation company's stock valued at $514,000 after acquiring an additional 1,018 shares during the period. World Investment Advisors purchased a new stake in Old Dominion Freight Line during the fourth quarter valued at about $360,000. Wealth Enhancement Advisory Services LLC grew its position in Old Dominion Freight Line by 9.5% during the first quarter. Wealth Enhancement Advisory Services LLC now owns 17,595 shares of the transportation company's stock valued at $2,911,000 after acquiring an additional 1,529 shares during the period. Finally, Mercer Global Advisors Inc. ADV grew its position in Old Dominion Freight Line by 93.5% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 15,396 shares of the transportation company's stock valued at $2,716,000 after acquiring an additional 7,439 shares during the period. 77.82% of the stock is currently owned by institutional investors and hedge funds.

Old Dominion Freight Line Company Profile

Old Dominion Freight Line, Inc operates as a less-than-truckload motor carrier in the United States and North America. The company offers regional, inter-regional, and national less-than-truckload services, as well as expedited transportation. It also provides various value-added services, including container drayage, truckload brokerage, and supply chain consulting.

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