Werner Enterprises (NASDAQ:WERN) Shares Gap Down - Time to Sell?

Key Points

• Werner Enterprises' share price gapped down from $26.54 to $25.93 before trading at $26.47, with recent analyst ratings showing mixed sentiments, including upgrades to "hold" and downgrades to "sell."
• The company reported a quarterly earnings of $0.11 per share, exceeding expectations, but revenue declined by 1.0% year-over-year.
• Werner Enterprises announced a quarterly dividend of $0.14 per share, with a yield of 2.1%, and authorized a share buyback program for up to 5 million shares, indicating a belief in the stock's undervaluation.

Werner Enterprises, Inc. (NASDAQ:WERN - Get Free Report)'s share price gapped down before the market opened on Wednesday . The stock had previously closed at $26.54, but opened at $25.93. Werner Enterprises shares last traded at $26.47, with a volume of 101,214 shares traded.

Analyst Ratings Changes

Several analysts have recently commented on WERN shares. Wall Street Zen upgraded shares of Werner Enterprises from a "strong sell" rating to a "hold" rating in a research report on Saturday, August 2nd. Susquehanna decreased their target price on Werner Enterprises from $27.00 to $23.00 and set a "neutral" rating on the stock in a research note on Wednesday, September 24th. Stifel Nicolaus dropped their price target on Werner Enterprises from $25.00 to $23.00 and set a "hold" rating for the company in a research note on Friday, October 3rd. Robert W. Baird assumed coverage on shares of Werner Enterprises in a report on Tuesday, July 1st. They issued an "underperform" rating and a $25.00 target price on the stock. Finally, Weiss Ratings downgraded shares of Werner Enterprises from a "hold (c-)" rating to a "sell (d+)" rating in a report on Wednesday, October 8th. Two equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and seven have given a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Reduce" and an average price target of $27.57.

Werner Enterprises Stock Performance

The firm's 50 day moving average is $27.74 and its 200 day moving average is $27.69. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.63 and a current ratio of 1.67. The stock has a market cap of $1.57 billion, a P/E ratio of 30.48, a price-to-earnings-growth ratio of 1.56 and a beta of 1.06.

Werner Enterprises (NASDAQ:WERN - Get Free Report) last announced its quarterly earnings data on Tuesday, July 29th. The transportation company reported $0.11 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.05 by $0.06. The firm had revenue of $753.15 million during the quarter, compared to analysts' expectations of $736.09 million. Werner Enterprises had a return on equity of 0.92% and a net margin of 1.77%.The company's revenue for the quarter was down 1.0% compared to the same quarter last year. During the same period last year, the business posted $0.17 earnings per share. Analysts anticipate that Werner Enterprises, Inc. will post 1.27 EPS for the current year.

Werner Enterprises Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 22nd. Shareholders of record on Monday, October 6th will be paid a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a yield of 2.1%. The ex-dividend date of this dividend is Monday, October 6th. Werner Enterprises's payout ratio is 65.12%.

Werner Enterprises declared that its board has authorized a share buyback program on Monday, August 11th that allows the company to repurchase 5,000,000 outstanding shares. This repurchase authorization allows the transportation company to purchase shares of its stock through open market purchases. Shares repurchase programs are generally a sign that the company's board of directors believes its stock is undervalued.

Institutional Investors Weigh In On Werner Enterprises

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Caitong International Asset Management Co. Ltd raised its position in shares of Werner Enterprises by 57.8% during the 2nd quarter. Caitong International Asset Management Co. Ltd now owns 1,018 shares of the transportation company's stock worth $28,000 after acquiring an additional 373 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in Werner Enterprises by 0.3% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 126,854 shares of the transportation company's stock valued at $3,717,000 after purchasing an additional 401 shares during the last quarter. PNC Financial Services Group Inc. raised its holdings in Werner Enterprises by 15.9% during the first quarter. PNC Financial Services Group Inc. now owns 2,937 shares of the transportation company's stock worth $86,000 after purchasing an additional 402 shares in the last quarter. Alliance Wealth Advisors LLC UT boosted its holdings in shares of Werner Enterprises by 3.0% in the 1st quarter. Alliance Wealth Advisors LLC UT now owns 14,528 shares of the transportation company's stock valued at $426,000 after buying an additional 421 shares in the last quarter. Finally, SummerHaven Investment Management LLC raised its stake in Werner Enterprises by 2.2% during the 2nd quarter. SummerHaven Investment Management LLC now owns 23,008 shares of the transportation company's stock worth $629,000 after acquiring an additional 492 shares in the last quarter. Hedge funds and other institutional investors own 89.32% of the company's stock.

About Werner Enterprises

Werner Enterprises, Inc, together with its subsidiaries, engages in transporting truckload shipments of general commodities in interstate and intrastate commerce in the United States, Mexico, and internationally. The company operates through two segments, Truckload Transportation Services and Werner Logistics.

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