Stifel Nicolaus Raises Werner Enterprises Price Target to $26

Werner Enterprises (NASDAQ: WERN) has seen its price target raised from $22.00 to $26.00 by Stifel Nicolaus in a report released on November 7, 2023. The firm maintains a hold rating on the stock of the transportation company, which operates in the United States, Mexico, and internationally. This adjustment comes amid a wave of recent analyst evaluations, highlighting a mixed sentiment on the company’s stock performance.

Several other financial institutions have adjusted their ratings on Werner Enterprises. Wall Street Zen downgraded the company from a “hold” rating to a “sell” on November 8, while UBS Group lowered its price target from $27.00 to $25.00, also assigning a neutral rating. Similarly, Citigroup revised its target from $29.00 to $27.00, maintaining a neutral stance. On October 31, Evercore ISI cut their price target from $23.00 to $20.00, rating the stock as underperforming. Additionally, JPMorgan Chase & Co. reduced its price objective from $24.00 to $23.00, labeling it as underweight.

Currently, analysts have mixed views on Werner Enterprises, with two giving a buy rating, seven issuing a hold rating, and another seven recommending a sell. According to data from MarketBeat.com, the company’s consensus rating is categorized as “Reduce,” with an average price target of $26.93.

Recent Financial Performance

Werner Enterprises released its latest quarterly earnings on October 30, 2023, reporting earnings per share (EPS) of ($0.03). This missed analysts’ consensus estimates of $0.15 by a significant margin of $0.18. The company recorded revenue of $712.04 million, falling short of the expected $763.63 million. The net margin stood at 0.85%, with a return on equity of 0.14%. In comparison to the previous year, revenue increased by 3.5%. Last year during the same period, the firm posted an EPS of $0.15. Analysts expect Werner Enterprises to achieve an EPS of 1.27 for the current year.

In light of its financial performance, Werner Enterprises has announced a quarterly dividend of $0.14 per share, scheduled for payment on January 21, 2024. Shareholders of record on January 5, 2024 will be eligible for this dividend, which translates to an annualized dividend of $0.56 and a yield of 1.8%. The ex-dividend date for this payment is also set for January 5. The company’s current payout ratio is 136.59%.

Institutional Investment Activity

Recent changes in institutional holdings indicate increased investor interest. PNC Financial Services Group Inc. raised its stake in Werner Enterprises by 15.9% during the first quarter, now holding 2,937 shares valued at approximately $86,000. Creative Planning expanded its position by 22.0% in the second quarter, acquiring an additional 13,782 shares for a total value of about $2.09 million.

Additionally, American Century Companies Inc. increased its holdings by 5.1%, now owning over 2.28 million shares valued at around $62.4 million. Envestnet Asset Management Inc. raised its stake by 25.0%, while Squarepoint Ops LLC significantly increased its position by 59.5%, now controlling 179,372 shares worth nearly $4.91 million. Institutional investors and hedge funds currently own approximately 89.32% of Werner Enterprises’ stock.

Werner Enterprises, Inc. specializes in transporting truckload shipments of general commodities and operates through two main segments: Truckload Transportation Services and Werner Logistics. As the company navigates a challenging market, continued monitoring of its financial health and analyst ratings will be crucial for potential investors and stakeholders.