Rush Enterprises (NASDAQ:RUSHA) Sees Unusually-High Trading Volume - What's Next?

Key Points

• Rush Enterprises shares rose 4.1% to $43.11 on unusually high volume, with 1.2 million shares traded—69% above the average daily volume.
• Analyst sentiment is mixed: the stock has an overall “Hold” rating and a consensus price target of $50.26, while recent calls ranged from “Strong Sell” to “Overweight.”
• The company slightly exceeded quarterly expectations, reporting $0.65 in earnings per share and $2.11 billion in revenue, and declared a quarterly dividend of $0.14 per share, yielding approximately 1.3%.

Shares of Rush Enterprises, Inc. (NASDAQ:RUSHA - Get Free Report) saw unusually-strong trading volume on Thursday. 1,203,815 shares changed hands during trading, an increase of 69% from the average daily volume of 711,483 shares. The stock last traded at $43.11 and had previously closed at $41.70.

Analysts Set New Price Targets

A number of research analysts have recently commented on the company. Weiss Ratings reiterated a "buy (b-)" rating on shares of Rush Enterprises in a research note on Wednesday, October 21st. Zacks Research lowered shares of Rush Enterprises from a "hold" rating to a "strong sell" rating in a report on Wednesday, September 2nd. Stephens decreased their price target on shares of Rush Enterprises from $60.00 to $55.00 and set an "overweight" rating for the company in a research report on Thursday. UBS Group reaffirmed a "neutral" rating and set a $56.67 price target (up from $52.00) on shares of Rush Enterprises in a research note on Tuesday, August 25th. Finally, Wall Street Zen lowered Rush Enterprises from a "buy" rating to a "hold" rating in a research report on Sunday, October 11th. Three equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $50.26.

Rush Enterprises Stock Up 4.1%

The firm has a market cap of $5.07 billion, a price-to-earnings ratio of 19.61, a PEG ratio of 1.61 and a beta of 0.92. The firm has a 50 day moving average of $47.80 and a 200 day moving average of $36.08. The company has a quick ratio of 0.38, a current ratio of 1.45 and a debt-to-equity ratio of 0.16.

Rush Enterprises (NASDAQ:RUSHA - Get Free Report) last released its quarterly earnings data on Tuesday, October 27th. The company reported $0.65 earnings per share for the quarter, beating the consensus estimate of $0.64 by $0.01. The company had revenue of $2.11 billion during the quarter, compared to analyst estimates of $2.05 billion. Rush Enterprises had a net margin of 3.67% and a return on equity of 11.65%. As a group, sell-side analysts predict that Rush Enterprises, Inc. will post 2.43 earnings per share for the current year.

Rush Enterprises Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Wednesday, November 11th will be paid a $0.14 dividend. This represents a $0.56 annualized dividend and a yield of 1.3%. The ex-dividend date of this dividend is Tuesday, November 10th. Rush Enterprises's payout ratio is 25.34%.

Insider Activity at Rush Enterprises

In related news, Director Michael McRoberts sold 14,625 shares of the business's stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $36.20, for a total value of $529,360.00. Following the completion of the sale, the director directly owned 36,514 shares of the company's stock, valued at $1,321,644.52. The trade was a 28.60% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, SVP Michael L. Goldstone sold 4,725 shares of the company's stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $36.13, for a total value of $170,730.00. Following the transaction, the senior vice president directly owned 28,327 shares in the company, valued at approximately $1,023,548.93. This trade represents a 14.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 243,062 shares of company stock worth $8,749,995 over the last three months. 12.68% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Rush Enterprises

A number of hedge funds have recently added to or reduced their stakes in the company. Integrated Wealth Concepts LLC bought a new position in shares of Rush Enterprises in the second quarter valued at approximately $25,000. Root Financial Partners LLC grew its holdings in Rush Enterprises by 75.4% during the first quarter. Root Financial Partners LLC now owns 407 shares of the company's stock worth $27,000 after buying an additional 175 shares in the last quarter. USA Financial Formulas purchased a new stake in Rush Enterprises in the 3rd quarter valued at $55,000. Pinnacle Wealth Planning Services Inc. lifted its stake in Rush Enterprises by 62.2% during the 3rd quarter. Pinnacle Wealth Planning Services Inc. now owns 1,207 shares of the company's stock valued at $55,000 after acquiring an additional 463 shares in the last quarter. Finally, GAMMA Investing LLC lifted its stake in Rush Enterprises by 66.1% during the 3rd quarter. GAMMA Investing LLC now owns 1,334 shares of the company's stock valued at $61,000 after acquiring an additional 531 shares in the last quarter. Institutional investors and hedge funds own 84.43% of the company's stock.

Rush Enterprises Company Profile

Rush Enterprises, Inc is a commercial vehicle solutions provider operating through the Rush Truck Centers network. The company sells new and used commercial trucks, including vehicles from manufacturers such as Peterbilt, International, Hino, Isuzu and Ford, along with related buses and specialty vehicles in selected markets.

In addition to vehicle sales, Rush provides parts, maintenance and repair services through its dealership network. Its offerings also include truck leasing and rentals, collision repair, mobile service, aftermarket products, and fleet-management and technology solutions designed to support commercial transportation operators.

Founded in 1965 and headquartered in New Braunfels, Texas, Rush has expanded from its original Peterbilt dealership into one of the largest commercial vehicle dealership networks in the United States.

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