Rush Enterprises (NASDAQ:RUSHA) Sets New 1-Year High - Here's Why

Key Points

• Rush Enterprises reached a new 52-week high of $83.55, supported by stronger-than-expected quarterly results. The company reported $0.91 in earnings per share versus analyst estimates of $0.86 and revenue of $1.90 billion.
• Analyst sentiment is generally positive, with a consensus rating of “Moderate Buy” and an average price target of $87.00. Stephens raised its target to $95, while Wolfe Research initiated coverage with an $88 target and an “outperform” rating.
• The company announced a 3-for-2 stock split effective August 11, while maintaining a quarterly dividend of $0.14 per share. However, insiders sold 105,750 shares worth approximately $8.6 million during the last quarter.

Rush Enterprises, Inc. (NASDAQ:RUSHA - Get Free Report) hit a new 52-week high during trading on Wednesday . The stock traded as high as $83.55 and last traded at $82.99, with a volume of 7897 shares. The stock had previously closed at $82.76.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on the stock. UBS Group increased their price target on shares of Rush Enterprises from $73.00 to $78.00 and gave the stock a "neutral" rating in a report on Wednesday, April 29th. Weiss Ratings raised shares of Rush Enterprises from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, July 23rd. Wolfe Research initiated coverage on shares of Rush Enterprises in a report on Monday, April 27th. They set an "outperform" rating and a $88.00 target price on the stock. Stephens increased their target price on shares of Rush Enterprises from $90.00 to $95.00 and gave the stock an "overweight" rating in a research note on Thursday, July 30th. Finally, Zacks Research raised shares of Rush Enterprises from a "strong sell" rating to a "hold" rating in a report on Monday, June 29th. Three analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $87.00.

Rush Enterprises Price Performance

The firm's 50-day moving average is $73.07 and its 200-day moving average is $70.28. The company has a market capitalization of $6.46 billion, a PE ratio of 25.04, a price-to-earnings-growth ratio of 1.79 and a beta of 0.87. 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 shares are set to split on the morning of Tuesday, August 11th. The 3-2 split was recently announced. The newly created shares will be issued to shareholders after the market closes on Monday, August 10th.

Rush Enterprises (NASDAQ:RUSHA - Get Free Report) last released its quarterly earnings results on Tuesday, July 28th. The company reported $0.91 earnings per share for the quarter, beating analysts' consensus estimates of $0.86 by $0.05. Rush Enterprises had a return on equity of 11.65% and a net margin of 3.67%.The business had revenue of $1.90 billion for the quarter, compared to the consensus estimate of $1.89 billion. Equities analysts predict that Rush Enterprises, Inc. will post 3.75 earnings per share for the current fiscal year.

Rush Enterprises Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Investors of record on Wednesday, September 9th will be issued a dividend of $0.14 per share. This represents a $0.56 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend is Wednesday, September 9th. Rush Enterprises's dividend payout ratio (DPR) is currently 22.89%.

Insider Buying and Selling

In related news, CFO Steven L. Keller sold 20,678 shares of the business's stock in a transaction that occurred on Friday, July 31st. The stock was sold at an average price of $80.73, for a total value of $1,669,334.94. Following the completion of the sale, the chief financial officer owned 84,374 shares in the company, valued at $6,811,513.02. The trade was a 19.68% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, SVP Michael L. Goldstone sold 2,100 shares of the company's stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $81.30, for a total value of $170,730.00. Following the completion of the sale, the senior vice president directly owned 12,590 shares of the company's stock, valued at approximately $1,023,567. This represents a 14.30% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 105,750 shares of company stock worth $8,562,992 in the last quarter. 12.68% of the stock is owned by insiders.

Hedge Funds Weigh In On Rush Enterprises

Several institutional investors and hedge funds have recently made changes to their positions in the business. Hsbc Holdings PLC bought a new position in shares of Rush Enterprises during the fourth quarter valued at about $776,000. SG Americas Securities LLC lifted its stake in shares of Rush Enterprises by 63.9% in the 4th quarter. SG Americas Securities LLC now owns 27,040 shares of the company's stock valued at $1,459,000 after acquiring an additional 10,545 shares during the last quarter. GW&K Investment Management LLC boosted its holdings in Rush Enterprises by 7.6% during the 4th quarter. GW&K Investment Management LLC now owns 350,952 shares of the company's stock valued at $18,930,000 after acquiring an additional 24,781 shares during the period. Cooke & Bieler LP boosted its holdings in Rush Enterprises by 85.0% during the 4th quarter. Cooke & Bieler LP now owns 729,250 shares of the company's stock valued at $39,336,000 after acquiring an additional 335,019 shares during the period. Finally, Denali Advisors LLC grew its position in Rush Enterprises by 10.0% during the 4th quarter. Denali Advisors LLC now owns 148,811 shares of the company's stock worth $8,027,000 after acquiring an additional 13,515 shares during the last quarter. Institutional investors own 84.43% of the company's stock.

Rush Enterprises Company Profile

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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