Covenant Logistics Group (NYSE:CVLG) Shares Gap Down on Disappointing Earnings

Shares of Covenant Logistics Group, Inc. (NYSE:CVLG) gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $21.88, but opened at $20.71. Covenant Logistics Group shares last traded at $21.49, with a volume of 20,949 shares traded.

The company reported $0.44 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.45 by ($0.01). Covenant Logistics Group had a return on equity of 10.77% and a net margin of 2.81%.The business had revenue of $296.89 million during the quarter.

Covenant Logistics Group Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, September 26th. Shareholders of record on Friday, September 5th were paid a $0.07 dividend. This represents a $0.28 dividend on an annualized basis and a yield of 1.4%. Covenant Logistics Group’s payout ratio is 21.37%.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on CVLG. Wall Street Zen lowered Covenant Logistics Group from a “buy” rating to a “hold” rating in a research note on Saturday, August 30th. Zacks Research lowered Covenant Logistics Group from a “hold” rating to a “strong sell” rating in a research note on Friday, October 10th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Covenant Logistics Group in a report on Tuesday, October 14th. Two investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $33.00.

Hedge Funds Weigh In On Covenant Logistics Group

Several hedge funds and other institutional investors have recently bought and sold shares of CVLG. MAI Capital Management lifted its position in Covenant Logistics Group by 100.0% during the 1st quarter. MAI Capital Management now owns 1,500 shares of the company’s stock worth $33,000 after acquiring an additional 750 shares in the last quarter. GAMMA Investing LLC lifted its position in Covenant Logistics Group by 1,289.4% during the 1st quarter. GAMMA Investing LLC now owns 1,709 shares of the company’s stock worth $38,000 after acquiring an additional 1,586 shares in the last quarter. BNP Paribas Financial Markets lifted its position in Covenant Logistics Group by 45.3% during the 2nd quarter. BNP Paribas Financial Markets now owns 1,562 shares of the company’s stock worth $38,000 after acquiring an additional 487 shares in the last quarter. Raymond James Financial Inc. acquired a new position in Covenant Logistics Group during the 2nd quarter worth approximately $39,000. Finally, Tower Research Capital LLC TRC lifted its position in Covenant Logistics Group by 127.1% during the 2nd quarter. Tower Research Capital LLC TRC now owns 1,971 shares of the company’s stock worth $48,000 after acquiring an additional 1,103 shares in the last quarter. 83.72% of the stock is owned by institutional investors and hedge funds.

Covenant Logistics Group Stock Down 8.6%

The firm has a 50-day moving average of $22.62 and a 200 day moving average of $22.65. The stock has a market capitalization of $500.40 million, a price-to-earnings ratio of 16.81 and a beta of 1.39. The company has a current ratio of 1.09, a quick ratio of 1.06 and a debt-to-equity ratio of 0.52.

Covenant Logistics Group Company Profile

Covenant Logistics Group, Inc, together with its subsidiaries, provides transportation and logistics services in the United States. It operates through four segments: Expedited, Dedicated, Managed Freight, and Warehousing. The Expedited segment primarily provides truckload services with high service freight and delivery standards, such as 1,000 miles in 22 hours or 15-minute delivery windows.