Zacks Research Downgrades Hub Group (NASDAQ:HUBG) to Strong Sell

Key Points

• Zacks Research has downgraded Hub Group from a "hold" rating to a "strong sell" rating, reflecting concerns about the company's stock performance.
• Despite the downgrade, other analysts have varied opinions, with Stifel Nicolaus rating it as a "buy" and establishing a $41.00 price objective.
• Hub Group's shares opened at $34.27, with a current consensus rating of "Hold" and a target price of $38.46.

Hub Group (NASDAQ:HUBG - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a note issued to investors on Monday,Zacks.com reports.

Other analysts also recently issued research reports about the stock. Stifel Nicolaus set a $41.00 price objective on shares of Hub Group and gave the stock a "buy" rating in a research note on Friday. JPMorgan Chase & Co. reduced their price objective on Hub Group from $39.00 to $36.00 and set a "neutral" rating for the company in a research note on Tuesday, July 8th. Evercore ISI set a $37.00 price target on shares of Hub Group and gave the stock an "in-line" rating in a research report on Tuesday, September 30th. Barclays decreased their price objective on Hub Group from $40.00 to $38.00 and set an "equal weight" rating on the stock in a report on Thursday, October 2nd. Finally, Susquehanna decreased their price target on shares of Hub Group from $47.00 to $42.00 and set a "positive" rating for the company in a research report on Wednesday, September 24th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $38.46.

Hub Group Stock Down 1.4%

Shares of NASDAQ:HUBG opened at $34.27 on Monday. Hub Group has a 1 year low of $30.75 and a 1 year high of $53.21. The stock's 50-day moving average is $35.76 and its 200 day moving average is $34.73. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.42 and a quick ratio of 1.42. The company has a market cap of $2.10 billion, a PE ratio of 20.77, a P/E/G ratio of 1.19 and a beta of 1.12.

Hub Group (NASDAQ:HUBG - Get Free Report) last released its quarterly earnings data on Thursday, July 31st. The transportation company reported $0.45 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.44 by $0.01. The business had revenue of $905.65 million for the quarter, compared to analysts' expectations of $913.53 million. Hub Group had a return on equity of 6.81% and a net margin of 2.65%.The firm's quarterly revenue was down 8.2% on a year-over-year basis. During the same period in the prior year, the firm posted $0.47 EPS. Hub Group has set its FY 2025 guidance at 1.800-2.050 EPS. Sell-side analysts anticipate that Hub Group will post 2.2 EPS for the current year.

Hedge Funds Weigh In On Hub Group

A number of hedge funds have recently modified their holdings of the stock. Smartleaf Asset Management LLC grew its holdings in Hub Group by 33.4% during the second quarter. Smartleaf Asset Management LLC now owns 1,282 shares of the transportation company's stock worth $44,000 after acquiring an additional 321 shares during the period. Baird Financial Group Inc. lifted its position in shares of Hub Group by 0.4% in the second quarter. Baird Financial Group Inc. now owns 90,318 shares of the transportation company's stock valued at $3,019,000 after acquiring an additional 329 shares in the last quarter. New York State Common Retirement Fund lifted its position in shares of Hub Group by 2.1% in the second quarter. New York State Common Retirement Fund now owns 19,327 shares of the transportation company's stock valued at $646,000 after acquiring an additional 397 shares in the last quarter. Vident Advisory LLC lifted its position in shares of Hub Group by 3.3% in the first quarter. Vident Advisory LLC now owns 13,239 shares of the transportation company's stock valued at $492,000 after acquiring an additional 427 shares in the last quarter. Finally, California State Teachers Retirement System lifted its position in Hub Group by 0.8% during the second quarter. California State Teachers Retirement System now owns 56,812 shares of the transportation company's stock worth $1,899,000 after buying an additional 437 shares during the period. 46.77% of the stock is owned by institutional investors and hedge funds.

About Hub Group

Hub Group, Inc, a supply chain solutions provider, offers transportation and logistics management services in North America. The company's transportation services include intermodal, truckload, less-than-truckload, flatbed, temperature-controlled, and dedicated and regional trucking, as well as final mile, railcar, small parcel, and international transportation.

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