Rush Enterprises (NASDAQ:RUSHA) Stock Crosses Above 200-Day Moving Average - Here's Why

Key Points

• Rush Enterprises shares crossed above their 200-day moving average, reaching $78.92 and last trading at $77.11, well above the $50.04 average.
• Analyst sentiment improved, with several upgrades and a consensus “Moderate Buy” rating, though the $69 average price target remains below the current share price.
• The company beat quarterly earnings and revenue estimates, while announcing a 3-for-2 stock split and a quarterly dividend of $0.14 per share.

Rush Enterprises, Inc. (NASDAQ:RUSHA - Get Free Report)'s stock price crossed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $50.04 and traded as high as $78.92. Rush Enterprises shares last traded at $77.11, with a volume of 281,309 shares changing hands.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on the stock. Stephens upped their price target on shares of Rush Enterprises from $60.00 to $63.33 and gave the stock an "overweight" rating in a research report on Thursday, July 30th. Weiss Ratings upgraded shares of Rush Enterprises from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, July 23rd. Zacks Research upgraded shares of Rush Enterprises from a "strong sell" rating to a "hold" rating in a research note on Monday, June 29th. UBS Group reaffirmed a "neutral" rating and issued a $85.00 target price (up from $78.00) on shares of Rush Enterprises in a report on Tuesday. Finally, Wall Street Zen upgraded Rush Enterprises from a "hold" rating to a "buy" rating in a research note on Saturday, August 15th. Three equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat, Rush Enterprises presently has a consensus rating of "Moderate Buy" and a consensus target price of $69.00.

Rush Enterprises Price Performance

The company has a quick ratio of 0.38, a current ratio of 1.45 and a debt-to-equity ratio of 0.16. The firm's fifty day moving average price is $56.84 and its 200 day moving average price is $50.04. The stock has a market cap of $6.00 billion, a PE ratio of 23.23, a P/E/G ratio of 1.74 and a beta of 0.87.

Shares of Rush Enterprises are scheduled to split on Tuesday, September 1st. The 3-2 split was announced on Tuesday, July 28th. The newly created shares will be payable to shareholders after the market closes on Monday, August 31st.

Rush Enterprises (NASDAQ:RUSHA - Get Free Report) last announced its quarterly earnings results on Tuesday, July 28th. The company reported $0.61 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.57 by $0.04. The company had revenue of $1.90 billion for the quarter, compared to the consensus estimate of $1.89 billion. Rush Enterprises had a net margin of 3.67% and a return on equity of 11.65%. As a group, equities analysts expect that Rush Enterprises, Inc. will post 3.75 EPS for the current fiscal year.

Rush Enterprises Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Wednesday, September 9th will be issued a $0.14 dividend. This represents a $0.56 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend is Wednesday, September 9th. Rush Enterprises's payout ratio is 22.89%.

Insider Transactions at Rush Enterprises

In other Rush Enterprises news, SVP Michael L. Goldstone sold 3,150 shares of the firm's stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $54.20, for a total transaction of $170,730.00. Following the completion of the transaction, the senior vice president owned 18,885 shares in the company, valued at $1,023,567. This trade represents a 14.30% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Michael Mcroberts sold 9,750 shares of the company's stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $54.29, for a total value of $529,360.00. Following the sale, the director directly owned 24,343 shares in the company, valued at $1,321,662.61. This trade represents a 28.60% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 168,375 shares of company stock valued at $9,092,352. 12.68% of the stock is owned by company insiders.

Institutional Investors Weigh In On Rush Enterprises

Several large investors have recently bought and sold shares of RUSHA. Hsbc Holdings PLC purchased a new stake in Rush Enterprises during the 4th quarter valued at $776,000. GW&K Investment Management LLC boosted its stake in Rush Enterprises by 7.6% during the fourth quarter. GW&K Investment Management LLC now owns 350,952 shares of the company's stock worth $18,930,000 after buying an additional 24,781 shares during the period. Cooke & Bieler LP boosted its stake in Rush Enterprises by 85.0% during the fourth quarter. Cooke & Bieler LP now owns 729,250 shares of the company's stock worth $39,336,000 after buying an additional 335,019 shares during the period. Denali Advisors LLC raised its stake in shares of Rush Enterprises by 10.0% in the fourth quarter. Denali Advisors LLC now owns 148,811 shares of the company's stock valued at $8,027,000 after acquiring an additional 13,515 shares during the period. Finally, Granite Investment Partners LLC raised its stake in shares of Rush Enterprises by 124.1% in the first quarter. Granite Investment Partners LLC now owns 143,619 shares of the company's stock valued at $9,495,000 after acquiring an additional 79,535 shares during the period. Institutional investors own 84.43% of the company's stock.

About Rush Enterprises

Rush Enterprises, Inc, headquartered in New Braunfels, Texas, is a leading distributor of commercial vehicles and related products in the United States. Through its Rush Truck Centers subsidiary, the company sells new and used medium- and heavy-duty trucks, buses and specialty vehicles, while also offering factory-authorized parts, collision repair, maintenance and warranty support across its network of dealerships.

Founded in 1965, Rush Enterprises has grown to encompass more than 150 locations in over 20 states, partnering with major manufacturers including Kenworth, Peterbilt, Freightliner, Volvo and Mack.

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