Zacks Research Downgrades Werner Enterprises (NASDAQ:WERN) to Hold

Key Points

• Zacks Research downgraded Werner Enterprises to “Hold” from “Strong Buy,” while the broader analyst consensus remains “Hold” with an average price target of $41.54.
• Werner’s latest quarterly results fell short of expectations: EPS was $0.22 versus the $0.24 consensus, and revenue was $813.36 million versus estimates of $931.12 million, despite 24% year-over-year revenue growth.
• The stock opened at $37.82, below its 50-day moving average of $42.40, and institutional investors and hedge funds collectively own approximately 89.32% of the company.

Werner Enterprises (NASDAQ:WERN - Get Free Report) was downgraded by investment analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a note issued to investors on Tuesday,Zacks.com reports.

Several other research analysts have also weighed in on the company. JPMorgan Chase & Co. upped their price target on Werner Enterprises from $37.00 to $39.00 and gave the company an "underweight" rating in a research report on Wednesday, July 29th. Citigroup lifted their target price on Werner Enterprises from $37.00 to $47.00 and gave the company a "neutral" rating in a research note on Thursday, July 9th. Susquehanna raised shares of Werner Enterprises from a "neutral" rating to a "positive" rating and reduced their price target for the stock from $48.00 to $44.00 in a research report on Thursday, July 30th. UBS Group raised their price target on shares of Werner Enterprises from $33.00 to $37.00 and gave the stock a "neutral" rating in a report on Wednesday, April 29th. Finally, Stifel Nicolaus upped their price objective on shares of Werner Enterprises from $36.00 to $40.00 and gave the company a "hold" rating in a research note on Monday, July 13th. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, eight have assigned a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $41.54.

Werner Enterprises Price Performance

NASDAQ WERN opened at $37.82 on Tuesday. The company has a current ratio of 1.45, a quick ratio of 1.42 and a debt-to-equity ratio of 0.60. Werner Enterprises has a 1 year low of $23.06 and a 1 year high of $47.49. The company has a market cap of $2.27 billion, a PE ratio of -49.76, a PEG ratio of 0.68 and a beta of 1.27. The stock's 50-day moving average price is $42.40 and its two-hundred day moving average price is $36.57.

Werner Enterprises (NASDAQ:WERN - Get Free Report) last released its quarterly earnings results on Tuesday, July 28th. The transportation company reported $0.22 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.24 by ($0.02). Werner Enterprises had a negative net margin of 1.42% and a positive return on equity of 1.18%. The firm had revenue of $813.36 million for the quarter, compared to analyst estimates of $931.12 million. During the same quarter in the prior year, the firm earned $0.11 EPS. The firm's revenue was up 24.0% compared to the same quarter last year. On average, analysts predict that Werner Enterprises will post 1.13 EPS for the current year.

Hedge Funds Weigh In On Werner Enterprises

Hedge funds have recently added to or reduced their stakes in the company. PNC Financial Services Group Inc. grew its position in Werner Enterprises by 41.3% in the fourth quarter. PNC Financial Services Group Inc. now owns 2,324 shares of the transportation company's stock worth $70,000 after acquiring an additional 679 shares in the last quarter. Bayforest Capital Ltd acquired a new stake in shares of Werner Enterprises in the 2nd quarter valued at $128,000. Covestor Ltd boosted its holdings in Werner Enterprises by 28.3% in the fourth quarter. Covestor Ltd now owns 3,261 shares of the transportation company's stock worth $98,000 after purchasing an additional 719 shares in the last quarter. KBC Group NV increased its position in Werner Enterprises by 86.9% during the fourth quarter. KBC Group NV now owns 3,614 shares of the transportation company's stock worth $108,000 after buying an additional 1,680 shares during the last quarter. Finally, GAMMA Investing LLC increased its position in Werner Enterprises by 21.5% during the second quarter. GAMMA Investing LLC now owns 3,812 shares of the transportation company's stock worth $166,000 after buying an additional 675 shares during the last quarter. Institutional investors and hedge funds own 89.32% of the company's stock.

Werner Enterprises Company Profile

Werner Enterprises, Inc, founded in 1956 by Clarence L. “Chris” Werner, is a leading transportation and logistics provider based in Omaha, Nebraska. The company began as a one‐truck operation and has since grown into one of North America's largest carriers, offering an array of services to support diverse supply chains.

Werner's core business activities include full truckload dry van services, dedicated contract carriage, intermodal transport and brokerage solutions. The company also provides value-added services such as warehousing, freight management and fleet maintenance through its network of terminals and service centers.

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