Short Interest in Lineage, Inc. (NASDAQ:LINE) Drops By 27.6%

Key Points

• Short interest in Lineage fell 27.6% in February to 6,954,589 shares, equal to 10.9% of the shares short and a days-to-cover ratio of 4.3.
• Chairman Kevin Patrick Marchetti bought 11,222 shares at about $39.05 on March 9, raising his stake to 100,390 shares (a 12.59% increase), and insiders now own 71.90% of the company.
• Lineage missed quarterly expectations, reporting EPS of $0.03 versus $0.73 expected and revenue of $1.34B versus $1.38B, while paying a quarterly dividend that annualizes to $2.11 (about a 5.8% yield).

Lineage, Inc. (NASDAQ:LINE - Get Free Report) was the target of a significant decrease in short interest in the month of February. As of February 27th, there was short interest totaling 6,954,589 shares, a decrease of 27.6% from the February 12th total of 9,609,402 shares. Currently, 10.9% of the shares of the stock are short sold. Based on an average daily volume of 1,631,824 shares, the days-to-cover ratio is currently 4.3 days. Based on an average daily volume of 1,631,824 shares, the days-to-cover ratio is currently 4.3 days. Currently, 10.9% of the shares of the stock are short sold.

Insider Activity

In other news, Chairman Kevin Patrick Marchetti acquired 11,222 shares of Lineage stock in a transaction dated Monday, March 9th. The stock was purchased at an average cost of $39.05 per share, with a total value of $438,219.10. Following the completion of the purchase, the chairman directly owned 100,390 shares in the company, valued at approximately $3,920,229.50. This trade represents a 12.59% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 71.90% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Lineage

Several institutional investors have recently added to or reduced their stakes in the company. Norges Bank purchased a new stake in shares of Lineage during the 2nd quarter worth approximately $606,642,000. Darlington Partners Capital Management LP grew its holdings in shares of Lineage by 45.5% in the third quarter. Darlington Partners Capital Management LP now owns 5,132,810 shares of the company's stock valued at $198,332,000 after purchasing an additional 1,605,810 shares in the last quarter. Morgan Stanley increased its position in Lineage by 378.6% in the fourth quarter. Morgan Stanley now owns 5,017,332 shares of the company's stock worth $175,607,000 after purchasing an additional 3,968,958 shares during the last quarter. Capital Research Global Investors increased its position in Lineage by 4.0% in the third quarter. Capital Research Global Investors now owns 3,152,949 shares of the company's stock worth $121,830,000 after purchasing an additional 120,616 shares during the last quarter. Finally, State Street Corp raised its stake in Lineage by 8.9% during the second quarter. State Street Corp now owns 1,780,270 shares of the company's stock valued at $78,402,000 after purchasing an additional 145,742 shares in the last quarter.

Lineage Price Performance

NASDAQ LINE traded down $0.44 on Friday, reaching $36.43. The company had a trading volume of 562,193 shares, compared to its average volume of 1,441,241. The company has a quick ratio of 0.71, a current ratio of 0.80 and a debt-to-equity ratio of 0.79. The stock has a market capitalization of $8.27 billion, a PE ratio of 10.87 and a beta of -0.42. The firm's 50 day moving average price is $37.54 and its 200 day moving average price is $37.76. Lineage has a 12 month low of $32.46 and a 12 month high of $61.01.

Lineage (NASDAQ:LINE - Get Free Report) last announced its quarterly earnings results on Wednesday, February 25th. The company reported $0.03 EPS for the quarter, missing the consensus estimate of $0.73 by ($0.70). The company had revenue of $1.34 billion during the quarter, compared to analysts' expectations of $1.38 billion. Lineage had a negative return on equity of 1.06% and a negative net margin of 1.87%.The firm's revenue for the quarter was down .2% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.83 EPS. As a group, equities analysts predict that Lineage will post 2.34 earnings per share for the current year.

Lineage Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, January 21st. Investors of record on Wednesday, December 31st were paid a dividend of $0.5275 per share. The ex-dividend date of this dividend was Wednesday, December 31st. This represents a $2.11 dividend on an annualized basis and a yield of 5.8%. Lineage's dividend payout ratio is presently -490.70%.

Analyst Ratings Changes

Several research analysts recently weighed in on the stock. Barclays reaffirmed a "positive" rating on shares of Lineage in a report on Wednesday, February 4th. The Goldman Sachs Group decreased their price target on Lineage from $50.00 to $45.00 and set a "buy" rating on the stock in a report on Tuesday, November 25th. Wells Fargo & Company boosted their price objective on Lineage from $32.00 to $39.00 and gave the company an "equal weight" rating in a research report on Monday, March 2nd. Morgan Stanley dropped their price objective on Lineage from $46.00 to $39.00 and set an "equal weight" rating for the company in a research note on Tuesday, December 16th. Finally, Robert W. Baird reiterated a "neutral" rating and set a $39.00 target price (down from $45.00) on shares of Lineage in a research report on Thursday, December 18th. Four investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat, Lineage has an average rating of "Hold" and a consensus price target of $43.18.

About Lineage

Lineage Logistics, Inc NASDAQ: LINE is a leading provider of temperature-controlled industrial real estate and supply chain solutions. The company specializes in refrigerated and frozen storage, transportation, and ancillary services designed to support the global perishable goods industry. From food manufacturers and distributors to retailers and foodservice operators, Lineage offers tailored temperature management solutions that help clients optimize inventory turnover, reduce waste, and maintain product quality throughout the cold chain.

Lineage's core services include ambient, refrigerated and frozen warehousing, cross-docking, transloading, and dedicated transportation.

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