Universal Logistics (NASDAQ:ULH) Shares Up 39.1% - Still a Buy?

Key Points

• Universal Logistics shares surged 39.1% to about $24.24, substantially above the analyst consensus target of $15.00. Despite the rally, analysts’ average rating remains “Reduce,” with two Holds and one Sell.
• The company reported quarterly EPS of $0.69, beating the $0.32 consensus estimate, while revenue of $394.05 million modestly exceeded expectations.
• Universal Logistics declared a quarterly dividend of $0.105 per share, equivalent to an annualized $0.42 dividend and a 1.7% yield; institutional investors own 25.5% of the stock.

Shares of Universal Logistics Holdings, Inc. (NASDAQ:ULH - Get Free Report) were up 39.1% on Monday. The company traded as high as $23.47 and last traded at $24.2390. Approximately 8,652 shares traded hands during mid-day trading, a decline of 86% from the average session volume of 59,769 shares. The stock had previously closed at $17.42.

Analyst Ratings Changes

A number of analysts have issued reports on the company. Stifel Nicolaus lowered their target price on Universal Logistics from $17.00 to $15.00 and set a "hold" rating on the stock in a report on Wednesday, July 15th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Universal Logistics in a research note on Monday, September 21st. Zacks Research raised Universal Logistics from a "strong sell" rating to a "hold" rating in a report on Monday, September 14th. Finally, Wall Street Zen raised shares of Universal Logistics from a "hold" rating to a "buy" rating in a research note on Saturday, August 15th. Two investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Reduce" and a consensus target price of $15.00.

Universal Logistics Trading Up 9.6%

The business's 50-day moving average price is $17.78 and its two-hundred day moving average price is $17.38. The company has a market capitalization of $652.98 million, a P/E ratio of 14.65 and a beta of 0.74. The company has a debt-to-equity ratio of 1.06, a current ratio of 1.20 and a quick ratio of 1.20.

Universal Logistics (NASDAQ:ULH - Get Free Report) last released its quarterly earnings results on Thursday, October 29th. The transportation company reported $0.69 EPS for the quarter, topping analysts' consensus estimates of $0.32 by $0.37. The company had revenue of $394.05 million for the quarter, compared to analyst estimates of $390.00 million. Universal Logistics had a return on equity of 4.11% and a net margin of 2.92%. As a group, analysts forecast that Universal Logistics Holdings, Inc. will post 0.50 EPS for the current fiscal year.

Universal Logistics Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, January 6th. Shareholders of record on Tuesday, December 1st will be paid a $0.1050 dividend. The ex-dividend date is Tuesday, December 1st. This represents a $0.42 annualized dividend and a yield of 1.7%. Universal Logistics's payout ratio is presently 24.85%.

Hedge Funds Weigh In On Universal Logistics

Several hedge funds have recently modified their holdings of ULH. BlackRock Inc. bought a new stake in shares of Universal Logistics in the 2nd quarter valued at about $8,082,000. Bank of New York Mellon Corp acquired a new stake in Universal Logistics in the 2nd quarter worth about $2,770,000. Empowered Funds LLC bought a new stake in shares of Universal Logistics in the second quarter valued at approximately $1,423,000. Quantinno Capital Management LP grew its holdings in shares of Universal Logistics by 118.9% during the 1st quarter. Quantinno Capital Management LP now owns 37,766 shares of the transportation company's stock worth $798,000 after purchasing an additional 20,511 shares in the last quarter. Finally, Deutsche Bank AG acquired a new position in shares of Universal Logistics in the 2nd quarter valued at approximately $75,000. Institutional investors own 25.50% of the company's stock.

About Universal Logistics

Universal Logistics Holdings, Inc provides transportation and logistics services throughout the United States, Canada and Mexico. The company serves automotive, industrial, retail and other commercial customers with customized supply-chain solutions designed to move freight and support manufacturing and distribution operations.

Its services include contract logistics, dedicated transportation, truckload and intermodal transportation, freight brokerage, drayage, and value-added services.

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