Analysts at Morgan Stanley have increased their price target for Werner Enterprises (NASDAQ: WERN) from $36.00 to $37.00, as stated in a report released on Monday. This adjustment reflects an “overweight” rating on the transportation company’s stock, indicating a potential upside of approximately 25.79% from its current trading price.
Other financial institutions have also recently evaluated Werner Enterprises. On November 7, UBS Group downgraded its target price from $27.00 to $25.00, assigning a “neutral” rating. Similarly, Bank of America reduced its price target from $27.00 to $26.00 with an “underperform” rating. Additionally, Wells Fargo & Company lowered its target from $25.00 to $22.00, maintaining an “underweight” rating. TD Cowen also adjusted its price objective from $24.00 to $23.00 while keeping a “hold” rating. Stifel Nicolaus similarly revised its target down from $25.00 to $23.00.
In total, two equity research analysts have rated the stock as a Buy, while seven have given it a Hold rating and another seven have issued Sell ratings. According to data from MarketBeat.com, the consensus rating for Werner Enterprises stands at “Reduce” with an average price target of $26.71.
Recent Earnings Report and Share Buyback Plan
Werner Enterprises reported its quarterly earnings on October 30, 2023. The company posted a loss of ($0.03) earnings per share, falling short of the consensus estimate of $0.15 by ($0.18). The company’s revenue for the quarter was $712.04 million, which is below analyst expectations of $763.63 million. Although revenue increased by 3.5% year-over-year, this figure contrasts sharply with the previous year’s earnings per share of $0.15.
Looking ahead, analysts forecast that Werner Enterprises may achieve earnings of $1.27 per share for the current fiscal year. In a strategic move, the company’s Board of Directors announced a share buyback plan on August 11, authorizing the repurchase of 5,000,000 shares. Such plans often signal management’s belief that the stock is undervalued.
Institutional Investors and Shareholder Activity
Recent activity among institutional investors has also influenced Werner Enterprises. Verition Fund Management LLC increased its holdings by 11.3% during the third quarter, now owning 67,712 shares valued at $1,782,000. Qube Research & Technologies Ltd entered a new position in the company worth approximately $621,000.
Furthermore, Millennium Management LLC raised its stake significantly by 282.1%, acquiring an additional 85,756 shares, bringing its total to 116,151 shares valued at $3,057,000. Brevan Howard Capital Management LP increased its holdings by 15.0%, while Bank of America Corp DE boosted its position by 2.0%, now owning 736,772 shares worth $19,392,000.
Currently, institutional investors and hedge funds own approximately 89.32% of Werner Enterprises’ stock, reflecting strong institutional confidence in the company’s future prospects.
As the market continues to react to these developments, investors are likely to closely monitor Werner Enterprises for further insights into its performance and strategic direction.
