In the world of finance, there is a constant ebb and flow of investment activity as institutional investors like Creative Planning make strategic moves to optimize their portfolios. A recent SEC disclosure by Creative Planning has revealed that they have cut their position in shares of C.H. Robinson Worldwide, Inc. (NASDAQ: CHRW) by 14.8% in the fourth quarter. This amounts to the sale of 5,862 shares leaving them with a holding of 33,791 shares during this time period. As per its most recent SEC filing, Creative Planning’s holdings in C.H. Robinson Worldwide were worth $3,094,000.
C.H. Robinson Worldwide operates as a third-party logistics provider that offers freight transportation services and logistics solutions around the globe through its global network of over 124,000 contracted transportation providers under contracts spanning multiple years.
The company released its quarterly earnings data on Wednesday, April 26th which reported an earnings per share (EPS) figure standing at $0.98 per share – missing analyst expectations who had predicted $1.01 per share – showcasing a negative deviation from consensus estimates due to the company allegedly failing to meet targets set forth for this period.
Regardless of this setback, C.H. Robinson Worldwide still displayed an impressive net margin of 3.50% with a return on equity (ROE) rate clocking in at an impressive figure with recorded rates reaching up to approximately 50%. The company generated $4.61 billion worth of revenue during the quarter alone but fell short compared to prior-year periods showcasing declines of up to 32%. Despite these being unfavorable figures for this current fiscal year’s performance period thus far, sell-side analysts predict that C.H.Robinson will post an EPS amounting up to 4.01 for the current fiscal year based on expert analysis moving forward into more lucrative timeshares
It comes as no surprise that several research firms have recently weighed in on CHRW including JPMorgan Chase & Co. who have recently downgraded their rating from neutral to underweight and have even set a $87 price target for the company. Stifel Nicolaus, on the other hand, has lifted their price target on C.H. Robinson Worldwide from an initial report of $92 to a revised estimate of $97 amid their belief in longer-term profitability.
StockNews.com’s coverage of C.H. Robinson Worldwide falls in-between these expert analyst sentiments with their recent hold rating positioned at a less favorable position than what would seem fit. Recently, Wells Fargo & Company dropped its price target estimate from $95 to $90 while also deeming the stock as underweight further adding on negativity amidst concerns that can be extrapolated and used when assessing future performances for this fiscal year.
Susquehanna has since offered its insight into matters reporting that the average price target for C.H. Robinson World Wide amounts up to be approximately $95.64 – a figure within Bloomberg.com’s consensus rating suggesting caution and pragmatism must be employed by investors as they move cautiously and tactfully forward in making investment decisions for this security over the course of June 1st, 2023.
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C.H. Robinson Worldwide Attracts Institutional Investors and Maintains Strong Financial Position
C.H. Robinson Worldwide has attracted a slew of institutional investors during the first half of this year. Last quarter saw Red Tortoise LLC, Armstrong Advisory Group Inc., Westside Investment Management Inc., CoreCap Advisors LLC and Penserra Capital Management LLC all acquire new stakes in the company, situated at an estimated $26,000 to $30,000 each. The newly-declared 96.01% stock owned by institutional investors adds weight to the perception that C.H. Robinson Worldwide is emerging as a wise investment choice for many. While these acquisitions only amount to less than 4% of total ownership of C.H. Robinson Worldwide, this could spark interest among other potential investors.
Despite varied rating opinions from analysts and recent dips in share price from reputable research firms such as Susquehanna and Wells Fargo & Company, C.H. Robinson’s stock opened strong on Thursday at $94.54 with a market capitalization of $11.01 billion.This represents a P/E ratio of 15.22 and a PEG ratio of 3.32 with a beta value of roughly 0.79; likely attesting to its solid financial position within the logistics sector.
In other news, two insiders sold an accumulated 23,779 shares in the company over May 2017 – suggesting that executives see no red flags ahead for the firm’s future despite varying stagnant growth last quarter.
Moreover, shareholders can expect quarterly dividends to be paid on July 3rd.and those listed as shareholders per June 2nd will receive $0.61 per share held – surely adding comfort to current holders noting analyst’s endorsement shall accompany ongoing shareholder returns which currently stand at around an annualized return rate of 2.58%.
