Werner Enterprises (NASDAQ:WERN) Shares Gap Up on Better-Than-Expected Earnings

Key Points

• Werner Enterprises' stock price jumped from $27.81 to $29.93 after reporting earnings of $0.11 per share, exceeding analyst estimates of $0.05.
• The company announced a quarterly dividend of $0.14 per share, resulting in a 1.98% yield, despite a significant payout ratio of 193.10%.
• Institutional investors own 89.32% of Werner Enterprises, with notable recent interest from firms such as Maple Rock Capital Partners and Wellington Management Group.

Werner Enterprises, Inc. (NASDAQ:WERN - Get Free Report) shares gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $27.81, but opened at $29.93. Werner Enterprises shares last traded at $28.11, with a volume of 209,876 shares.

The transportation company reported $0.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.05 by $0.06. Werner Enterprises had a return on equity of 0.92% and a net margin of 1.77%. The business had revenue of $753.15 million for the quarter, compared to analyst estimates of $736.09 million. During the same period in the prior year, the company posted $0.17 EPS. The business's revenue was down 1.0% compared to the same quarter last year.

Werner Enterprises Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, July 23rd. Stockholders of record on Monday, July 7th were given a dividend of $0.14 per share. The ex-dividend date was Monday, July 7th. This represents a $0.56 dividend on an annualized basis and a dividend yield of 2.1%. Werner Enterprises's payout ratio is presently 193.10%.

Analyst Ratings Changes

A number of equities analysts have commented on WERN shares. Evercore ISI raised their price objective on Werner Enterprises from $21.00 to $25.00 and gave the stock an "underperform" rating in a research note on Wednesday. UBS Group decreased their price objective on Werner Enterprises from $30.00 to $27.00 and set a "neutral" rating on the stock in a report on Monday, May 5th. Robert W. Baird started coverage on Werner Enterprises in a research report on Tuesday, July 1st. They issued an "underperform" rating and a $25.00 price objective on the stock. The Goldman Sachs Group upgraded Werner Enterprises from a "sell" rating to a "buy" rating and upped their price objective for the stock from $25.00 to $39.00 in a research note on Monday, June 2nd. Finally, Wall Street Zen downgraded shares of Werner Enterprises from a "hold" rating to a "sell" rating in a report on Thursday, May 8th. Seven investment analysts have rated the stock with a sell rating, seven have issued a hold rating and three have given a buy rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $30.87.

Institutional Investors Weigh In On Werner Enterprises

Several hedge funds and other institutional investors have recently modified their holdings of the company. Brooklyn Investment Group increased its stake in Werner Enterprises by 163.5% in the 1st quarter. Brooklyn Investment Group now owns 959 shares of the transportation company's stock worth $28,000 after acquiring an additional 595 shares during the last quarter. Caitong International Asset Management Co. Ltd raised its holdings 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 valued at $28,000 after buying an additional 373 shares in the last quarter. MassMutual Private Wealth & Trust FSB grew its position in Werner Enterprises by 69.7% during the 1st quarter. MassMutual Private Wealth & Trust FSB now owns 1,176 shares of the transportation company's stock worth $34,000 after acquiring an additional 483 shares during the last quarter. Fifth Third Bancorp grew its position in shares of Werner Enterprises by 306.9% in the 2nd quarter. Fifth Third Bancorp now owns 1,294 shares of the transportation company's stock worth $35,000 after buying an additional 976 shares during the last quarter. Finally, Headlands Technologies LLC bought a new stake in shares of Werner Enterprises in the 4th quarter worth approximately $39,000. Institutional investors own 89.32% of the company's stock.

Werner Enterprises Trading Down 2.3%

The company has a market cap of $1.67 billion, a PE ratio of 31.48, a PEG ratio of 1.75 and a beta of 1.07. The company has a current ratio of 1.74, a quick ratio of 1.62 and a debt-to-equity ratio of 0.51. The stock has a 50 day moving average price of $27.79 and a 200 day moving average price of $29.84.

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.