Werner Enterprises (NASDAQ:WERN) Stock Price Up 5% - Still a Buy?

Key Points

• Werner Enterprises' stock price increased by 5% to $29.26, though trading volume was notably low at approximately 67,305 shares, a 93% decline from its average volume.
• Analysts are mixed on the stock, with three Buy ratings, six Hold ratings, and six Sell ratings, reflecting an average target price of $30.50.
• The company announced a quarterly dividend of $0.14, resulting in an annualized yield of 2.0%, and initiated a stock buyback program of up to 5 million shares.

Werner Enterprises, Inc. (NASDAQ:WERN - Get Free Report) shares traded up 5% during trading on Tuesday . The company traded as high as $28.93 and last traded at $29.26. 67,305 shares changed hands during trading, a decline of 93% from the average session volume of 904,596 shares. The stock had previously closed at $27.88.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the stock. 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 price objective for the company. TD Cowen dropped their price target on shares of Werner Enterprises from $33.00 to $30.00 and set a "buy" rating on the stock in a research report on Wednesday, April 30th. Susquehanna boosted their price target on shares of Werner Enterprises from $25.00 to $27.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 30th. Barclays dropped their price target on shares of Werner Enterprises from $32.00 to $28.00 and set an "equal weight" rating on the stock in a research report on Wednesday, April 30th. Finally, 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. Three equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and six have assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Reduce" and a consensus price target of $30.50.

Werner Enterprises Price Performance

The company's 50 day moving average price is $28.08 and its 200-day moving average price is $28.84. The company has a market cap of $1.77 billion, a price-to-earnings ratio of 34.36, a PEG ratio of 1.62 and a beta of 1.08. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.63 and a current ratio of 1.67.

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 company had revenue of $753.15 million for the quarter, compared to analysts' expectations of $736.09 million. Werner Enterprises had a net margin of 1.77% and a return on equity of 0.92%. The business's revenue was down 1.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.17 EPS. On average, equities research analysts forecast that Werner Enterprises, Inc. will post 1.27 earnings per share for the current fiscal year.

Werner Enterprises Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 22nd. Stockholders of record on Monday, October 6th will be given a $0.14 dividend. This represents a $0.56 annualized dividend and a dividend yield of 1.9%. The ex-dividend date of this dividend is Monday, October 6th. Werner Enterprises's dividend payout ratio (DPR) is 65.12%.

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

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in WERN. Maple Rock Capital Partners Inc. purchased a new position in shares of Werner Enterprises in the fourth quarter worth approximately $35,257,000. Wellington Management Group LLP purchased a new position in shares of Werner Enterprises in the fourth quarter worth approximately $31,634,000. Jacobs Levy Equity Management Inc. increased its position in shares of Werner Enterprises by 1,642.2% in the first quarter. Jacobs Levy Equity Management Inc. now owns 620,855 shares of the transportation company's stock worth $18,191,000 after acquiring an additional 585,218 shares in the last quarter. Balyasny Asset Management L.P. purchased a new position in shares of Werner Enterprises in the second quarter worth approximately $12,972,000. Finally, First Trust Advisors LP increased its position in shares of Werner Enterprises by 17.2% in the second quarter. First Trust Advisors LP now owns 2,893,705 shares of the transportation company's stock worth $79,172,000 after acquiring an additional 424,935 shares in the last quarter. 89.32% of the stock is owned by hedge funds and other institutional investors.

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.