Hub Group (NASDAQ:HUBG) Shares Gap Down Following Analyst Downgrade

Hub Group, Inc. (NASDAQ:HUBG)’s stock price gapped down prior to trading on Friday after Robert W. Baird downgraded the stock from an outperform rating to a hold rating. The stock had previously closed at $51.33, but opened at $37.72. Robert W. Baird now has a $29.00 price target on the stock. Hub Group shares last traded at $39.1750, with a volume of 590,763 shares.

Several other research analysts have also recently commented on the stock. Barclays restated an “overweight” rating and set a $48.00 target price (up previously from $38.00) on shares of Hub Group in a report on Thursday, January 15th. Morgan Stanley set a $46.00 price objective on shares of Hub Group and gave the stock an “equal weight” rating in a research note on Monday, December 8th. Susquehanna raised their price objective on Hub Group from $42.00 to $55.00 and gave the company a “positive” rating in a report on Thursday, January 8th. BMO Capital Markets upped their target price on Hub Group from $38.00 to $40.00 and gave the stock a “market perform” rating in a report on Monday, November 3rd. Finally, TD Cowen restated a “hold” rating on shares of Hub Group in a research note on Monday, January 12th. Eight equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $43.87.

Insider Activity at Hub Group

In other Hub Group news, Director Gary Yablon acquired 4,566 shares of the business’s stock in a transaction dated Thursday, December 11th. The stock was bought at an average cost of $43.73 per share, with a total value of $199,671.18. Following the completion of the transaction, the director directly owned 32,778 shares in the company, valued at approximately $1,433,381.94. This represents a 16.18% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO Phillip D. Yeager sold 32,000 shares of Hub Group stock in a transaction that occurred on Thursday, December 11th. The stock was sold at an average price of $43.68, for a total value of $1,397,760.00. Following the transaction, the chief executive officer owned 168,315 shares of the company’s stock, valued at $7,351,999.20. This represents a 15.97% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 3.48% of the stock is owned by corporate insiders.

Key Headlines Impacting Hub Group

Here are the key news stories impacting Hub Group this week:

• Positive Sentiment: Preliminary Q4 and full‑year 2025 results showed modest intermodal volume growth, a strong year‑end cash position (~$140M), ~ $194M operating cash flow for 2025 and initial 2026 revenue guidance of roughly $3.65B–$3.95B — underscores underlying business momentum despite the accounting issues. Hub Group Reports Select Preliminary Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Management touted record service levels and operational resilience amid market challenges on the Q4 earnings call — a positive operational signal if underlying financials are corrected and clarified. Q4 2025 Earnings Call Highlights
• Neutral Sentiment: Full earnings materials and call transcripts were posted; these provide detail investors will need to re‑assess once restated financials are released. Review the prepared remarks and transcript for operational context. Earnings Call Prepared Remarks Transcript
• Negative Sentiment: Hub Group disclosed an error that understated purchased transportation costs and accounts payable for part of 2025 and warned that recent quarterly reports “should no longer be relied upon,” prompting a dramatic stock drop and raising the prospect of restatements and regulatory scrutiny. Shares Crater Amid Admitted Improper Accounting
• Negative Sentiment: Multiple national law firms have opened securities‑fraud investigations and are soliciting shareholders (examples include Howard G. Smith, Faruqi & Faruqi, Scott+Scott and others), which typically indicates potential litigation risk and additional headline pressure until restatements and management explanations are complete. Law Offices of Howard G. Smith Investigation Notice

Institutional Trading of Hub Group

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Invesco Ltd. raised its holdings in Hub Group by 4.1% in the 3rd quarter. Invesco Ltd. now owns 1,958,934 shares of the transportation company’s stock valued at $67,466,000 after acquiring an additional 77,963 shares during the period. Geode Capital Management LLC grew its position in shares of Hub Group by 0.6% in the second quarter. Geode Capital Management LLC now owns 1,520,025 shares of the transportation company’s stock valued at $50,821,000 after purchasing an additional 9,608 shares during the last quarter. Millennium Management LLC grew its position in shares of Hub Group by 138.4% in the third quarter. Millennium Management LLC now owns 1,138,461 shares of the transportation company’s stock valued at $39,209,000 after purchasing an additional 661,018 shares during the last quarter. River Road Asset Management LLC increased its stake in shares of Hub Group by 79.2% during the second quarter. River Road Asset Management LLC now owns 1,103,402 shares of the transportation company’s stock worth $38,641,000 after purchasing an additional 487,703 shares during the period. Finally, Deprince Race & Zollo Inc. lifted its holdings in Hub Group by 3.3% during the 4th quarter. Deprince Race & Zollo Inc. now owns 1,029,791 shares of the transportation company’s stock worth $43,879,000 after purchasing an additional 33,224 shares during the last quarter. Institutional investors own 46.77% of the company’s stock.

Hub Group Price Performance

The company has a current ratio of 1.47, a quick ratio of 1.47 and a debt-to-equity ratio of 0.09. The company has a 50 day moving average of $44.96 and a 200-day moving average of $39.04. The firm has a market capitalization of $2.57 billion, a P/E ratio of 24.25, a P/E/G ratio of 1.20 and a beta of 1.13.

Hub Group Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, December 17th. Shareholders of record on Friday, December 5th were paid a $0.125 dividend. The ex-dividend date was Friday, December 5th. This represents a $0.50 annualized dividend and a yield of 1.2%. Hub Group’s payout ratio is 28.90%.

About Hub Group

Hub Group, Inc (NASDAQ: HUBG) is a leading supply chain solutions provider headquartered in Oak Brook, Illinois. Founded in 1971 as Hub City Terminals and renamed Hub Group in 1978, the company completed its initial public offering in 2007. Over the decades, Hub Group has developed a comprehensive multimodal transportation network, leveraging partnerships with major rail carriers and an extensive drayage fleet to offer cost-efficient, sustainable shipping alternatives.

The company operates through two primary segments: Intermodal and Transportation Management.