Heartland Express (NASDAQ:HTLD) Shares Gap Down After Analyst Downgrade

Key Points

• Heartland Express shares fell sharply after Wall Street Zen downgraded the stock from “buy” to “hold,” opening at $9.87 versus the prior close of $10.53.
• Analyst sentiment is broadly negative: four analysts rate the stock “hold” and three rate it “sell,” resulting in a consensus “reduce” rating and an average price target of $12.40.
• The company reported quarterly revenue of $152.38 million, below the $185.08 million estimate and down 12.5% year over year, while maintaining a quarterly dividend of $0.02 per share.

Heartland Express, Inc. (NASDAQ:HTLD - Get Free Report)'s stock price gapped down before the market opened on Tuesday after Wall Street Zen downgraded the stock from a buy rating to a hold rating. The stock had previously closed at $10.53, but opened at $9.87. Heartland Express shares last traded at $10.2920, with a volume of 75,388 shares trading hands.

Several other equities research analysts have also commented on the company. Weiss Ratings reiterated a "sell (d-)" rating on shares of Heartland Express in a research note on Wednesday, June 24th. UBS Group lifted their price target on shares of Heartland Express from $12.00 to $13.00 and gave the company a "neutral" rating in a research report on Thursday, August 6th. Barclays reduced their price objective on shares of Heartland Express from $14.00 to $12.00 and set an "underweight" rating on the stock in a report on Thursday, August 13th. Morgan Stanley increased their target price on shares of Heartland Express from $12.00 to $13.00 and gave the stock an "equal weight" rating in a research note on Monday, July 6th. Finally, Zacks Research downgraded shares of Heartland Express from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, September 8th. Four analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Reduce" and an average target price of $12.40.

Institutional Investors Weigh In On Heartland Express

Institutional investors have recently modified their holdings of the company. Fortitude Family Office LLC purchased a new stake in Heartland Express during the 3rd quarter worth about $38,000. WINTON GROUP Ltd acquired a new stake in shares of Heartland Express during the 2nd quarter worth about $289,000. Corient Private Wealth LP acquired a new stake in shares of Heartland Express during the 2nd quarter worth about $165,000. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in Heartland Express during the second quarter worth approximately $976,000. Finally, Susquehanna International Group LLP lifted its stake in Heartland Express by 13.0% during the second quarter. Susquehanna International Group LLP now owns 27,476 shares of the transportation company's stock worth $418,000 after purchasing an additional 3,165 shares during the last quarter. 53.45% of the stock is owned by hedge funds and other institutional investors.

Heartland Express Stock Performance

The firm has a 50 day moving average of $11.93 and a two-hundred day moving average of $13.08. The company has a debt-to-equity ratio of 0.18, a current ratio of 1.58 and a quick ratio of 1.58. The stock has a market cap of $795.73 million, a PE ratio of -36.75 and a beta of 1.35.

Heartland Express (NASDAQ:HTLD - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The transportation company reported $0.14 EPS for the quarter. Heartland Express had a negative net margin of 2.98% and a negative return on equity of 0.92%. The firm had revenue of $152.38 million for the quarter, compared to analyst estimates of $185.08 million. During the same period last year, the business earned ($0.14) EPS. Heartland Express's revenue for the quarter was down 12.5% compared to the same quarter last year. Research analysts predict that Heartland Express, Inc. will post 0.13 EPS for the current fiscal year.

Heartland Express Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, October 7th. Investors of record on Friday, September 25th were given a $0.02 dividend. The ex-dividend date was Friday, September 25th. This represents a $0.08 annualized dividend and a yield of 0.8%. Heartland Express's dividend payout ratio is -28.57%.

Heartland Express Company Profile

Heartland Express, Inc NASDAQ: HTLD is a transportation and logistics company that provides truckload freight services across North America. Its operations primarily involve the over-the-road movement of general, non-refrigerated freight using dry van equipment.

The company offers irregular-route and dedicated transportation services to shippers, along with logistics and related freight solutions. Heartland Express serves customers throughout the contiguous United States and, through its broader network, supports cross-border freight movements involving Canada and Mexico.

Founded in 1978 by Russell Gerdin, the company is headquartered in North Liberty, Iowa.

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