Analysts at Morgan Stanley have raised their price target for Werner Enterprises (NASDAQ: WERN) from $36.00 to $37.00, reflecting a potential upside of 25.79% from the current trading price. This update was included in a report released on October 30, 2023, and the firm maintains an “overweight” rating on the transportation company’s stock.
Other analysts have offered varied assessments of Werner Enterprises in recent weeks. UBS Group reduced its target price from $27.00 to $25.00, assigning a “neutral” rating. Bank of America also lowered its price target from $27.00 to $26.00, while issuing an “underperform” rating. Additionally, Wells Fargo adjusted its target from $25.00 to $22.00 with an “underweight” rating, and TD Cowen changed its target from $24.00 to $23.00, maintaining a “hold” rating. Stifel Nicolaus also decreased its target from $25.00 to $23.00.
Currently, two analysts recommend a Buy rating, while seven suggest holding, and another seven advise selling the stock. According to data from MarketBeat.com, the consensus rating for Werner Enterprises stands at “Reduce,” with an average price target of $26.71.
Quarterly Earnings Report Highlights Challenges
Werner Enterprises recently released its quarterly earnings data, reporting earnings per share of ($0.03), which fell short of the consensus estimate of $0.15 by ($0.18). The company experienced a net margin of 0.85% and a return on equity of 0.14%. During the quarter, revenue reached $712.04 million, significantly below analysts’ expectations of $763.63 million. In the same quarter of the previous year, the company recorded earnings per share of $0.15. Despite these challenges, revenue showed a year-over-year increase of 3.5%.
Analysts predict that Werner Enterprises will report an earnings per share of 1.27 for the current fiscal year. In a strategic move, the company’s Board of Directors initiated a share buyback plan on August 11, 2023, authorizing the repurchase of 5,000,000 shares. This decision typically signals that the management believes the stock is undervalued.
Institutional Investment Trends
Institutional investors have recently adjusted their stakes in Werner Enterprises, reflecting ongoing interest in the company. Verition Fund Management LLC increased its holdings by 11.3% during the third quarter, now owning 67,712 shares valued at approximately $1.78 million. Qube Research & Technologies Ltd entered a new position worth about $621,000 during the same period.
Millennium Management LLC raised its stake by an impressive 282.1%, now holding 116,151 shares valued at $3.06 million. Brevan Howard Capital Management LP also increased its holdings by 15.0%, owning 27,292 shares valued at $718,000 post-acquisition. Bank of America Corp DE boosted its position by 2.0%, now controlling 736,772 shares worth approximately $19.39 million.
Overall, institutional investors and hedge funds hold 89.32% of Werner Enterprises’ stock, underscoring significant institutional confidence in the company amidst its current challenges.
Werner Enterprises operates within the transportation sector, focusing on truckload shipments of general commodities across the United States, Mexico, and internationally. The company is structured into two segments: Truckload Transportation Services and Werner Logistics. As market analysts continue to evaluate the company’s performance, stakeholders are closely monitoring both operational results and strategic initiatives moving forward.
