Hub Group (NASDAQ:HUBG) Shares Gap Up on Analyst Upgrade

Key Points

• Hub Group shares opened higher after Robert W. Baird upgraded the stock from neutral to outperform and set a $29 price target; shares opened at $26.52 versus a prior close of $25.76.
• Analyst sentiment remains mixed, with six Buy, eight Hold, and two Sell ratings. The consensus rating is Hold, with an average price target of $40.67.
• Institutional investors own 46.77% of Hub Group’s shares, while the company’s quarterly dividend of $0.125 per share equates to an annualized $0.50 payout and a 1.9% yield.

Hub Group, Inc. (NASDAQ:HUBG - Get Free Report) gapped up prior to trading on Monday after Robert W. Baird upgraded the stock from a neutral rating to an outperform rating. The stock had previously closed at $25.76, but opened at $26.52. Robert W. Baird now has a $29.00 price target on the stock. Hub Group shares last traded at $26.26, with a volume of 134,480 shares.

Other analysts have also issued reports about the company. JPMorgan Chase & Co. dropped their price objective on Hub Group from $50.00 to $46.00 and set a "neutral" rating on the stock in a report on Monday, October 5th. Wells Fargo & Company reaffirmed a "negative" rating and set a $28.00 target price (down from $35.00) on shares of Hub Group in a research note on Tuesday, October 6th. Stifel Nicolaus set a $29.00 target price on Hub Group and gave the company a "hold" rating in a research report on Thursday, October 1st. Weiss Ratings lowered Hub Group from a "hold (c)" rating to a "hold (c-)" rating in a research report on Monday, September 21st. Finally, Barclays set a $30.00 price target on shares of Hub Group and gave the company an "equal weight" rating in a research note on Monday, September 28th. Six equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $40.67.

Institutional Investors Weigh In On Hub Group

Several large investors have recently bought and sold shares of HUBG. Cim Investment Management Inc. purchased a new position in shares of Hub Group in the second quarter valued at approximately $261,000. Engineers Gate Manager LP acquired a new stake in shares of Hub Group in the second quarter worth approximately $460,000. Squarepoint Ops LLC increased its position in shares of Hub Group by 31.9% during the second quarter. Squarepoint Ops LLC now owns 63,882 shares of the transportation company's stock worth $2,797,000 after purchasing an additional 15,449 shares in the last quarter. Baird Financial Group Inc. increased its position in shares of Hub Group by 8.8% during the second quarter. Baird Financial Group Inc. now owns 104,493 shares of the transportation company's stock worth $4,576,000 after purchasing an additional 8,464 shares in the last quarter. Finally, Nykredit A S purchased a new stake in shares of Hub Group during the second quarter worth approximately $25,000. 46.77% of the stock is currently owned by hedge funds and other institutional investors.

Hub Group Stock Performance

The company has a 50 day moving average of $36.35 and a 200 day moving average of $40.63. The stock has a market capitalization of $1.61 billion, a price-to-earnings ratio of 15.16 and a beta of 1.24.

Hub Group Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st were issued a dividend of $0.1250 per share. The ex-dividend date of this dividend was Monday, September 21st. This represents a $0.50 dividend on an annualized basis and a dividend yield of 1.9%. Hub Group's dividend payout ratio is presently 28.90%.

About Hub Group

Hub Group, Inc NASDAQ: HUBG is a North American transportation and logistics company headquartered in Oak Brook, Illinois. The company helps businesses move goods through a combination of intermodal, truckload, less-than-truckload, final-mile and other transportation services.

Hub Group's intermodal operations coordinate freight shipments using rail and trucks, while its brokerage business connects shippers with third-party transportation providers. The company also provides dedicated transportation, managed transportation, logistics, warehousing and supply chain solutions designed to support customers' domestic freight and distribution needs.

Founded in 1971, Hub Group serves customers throughout the United States and maintains transportation capabilities extending into Canada and Mexico.

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