On September 3, 2023, it was reported that Moloney Securities Asset Management LLC had acquired a new stake in ArcBest Co. (NASDAQ:ARCB) during the first quarter. The institutional investor purchased 6,750 shares of the transportation company’s stock, valued at approximately $624,000. This information was disclosed in the company’s most recent filing with the Securities & Exchange Commission.
ArcBest recently released its earnings results on July 28th. The transportation company reported earnings per share (EPS) of $1.54 for the quarter, falling short of analysts’ consensus estimates by ($0.50). Despite this, ArcBest had a solid return on equity of 20.06% and a net margin of 4.95%. The company generated revenue amounting to $1.10 billion during the quarter, slightly below analyst estimates of $1.11 billion. Comparatively, in the same period last year, ArcBest earned $4.30 per share. It should be noted that their revenue was down 16.5% compared to the previous year’s quarter.
Various brokerages have recently provided their insights on ARCB shares, augmenting investor interest in assessing its potential performance moving forward. Morgan Stanley increased their target price for ArcBest from $125 to $135 and labeled it as “overweight” in their research note issued on July 31st. Stifel Nicolaus also raised their target price for ArcBest from $125 to $134 and assigned it a “buy” rating in a research note dated August 1st.
Jefferies Financial Group initiated coverage on ArcBest on June 12th and set a “buy” rating along with a target price of $110 for the company’s stock. Furthermore, Wolfe Research upgraded ArcBest from a “peer perform” rating to an “outperform” rating on August 21st and established a price objective of $132. Finally, Citigroup raised its price objective on ArcBest from $118 to $137 and gave the stock a “buy” rating in a research note issued on July 31st.
Analysts’ views on ARCB stock vary, with one investment analyst rating it as a sell, three as hold, and five as buy. According to Bloomberg data, ArcBest currently has an average rating of “Hold” and a consensus price target of $123.33.
As investors navigate the ever-changing market landscape, these ratings and target prices serve as valuable guidance. However, it is important for individuals to conduct their own research and analysis before making any investment decisions.
Hedge Funds and Insiders Show Confidence in ArcBest Co. with Acquisitions and Sales
ArcBest Co., a transportation company, has attracted the attention of various hedge funds and institutional investors, as evidenced by their recent purchasing and selling activities. Ameritas Advisory Services LLC acquired a new stake in ArcBest during the first quarter, with an investment worth approximately $28,000. Similarly, National Bank of Canada FI and Ancora Advisors LLC also bought positions in ArcBest during the same quarter, valued at around $55,000 and $56,000 respectively. Point72 Hong Kong Ltd followed suit in the second quarter with an investment of approximately $58,000.
Tower Research Capital LLC TRC has displayed remarkable confidence in ArcBest by raising its stake in the company’s shares by a staggering 1,668.9% during the first quarter. This move alone signals Tower Research Capital LLC TRC’s belief in the potential growth and profitability of the transportation firm’s stock. The increased stake amounts to 796 shares worth $73,000 after purchasing an additional 751 shares.
These investments highlight the high degree of trust that hedge funds and institutional investors place in ArcBest Co., as they collectively own 95.78% of the company’s stock. This implies that these financial giants have recognized significant potential for growth or value creation within ArcBest Co., leading them to allocate substantial capital towards acquiring stakes in the transportation company.
In separate news regarding insider trading activities within ArcBest Co., Director Craig E. Philip sold 2,700 shares on August 22nd at an average price of $106.60 per share. This transaction amounted to a total of $287,820. Following this sale, Philip has retained ownership of 28,400 shares in ArcBest Co., which are currently valued at approximately $3,027,440.
Furthermore, CEO Judy R. Mcreynolds recently sold 15,443 shares of ArcBest Co.’s stock on August 8th at an average price of $110.09. The total value of this transaction amounted to $1,700,119.87. As a result of this sale, Mcreynolds now holds 56,534 shares in the company with an approximate value of $6,223,828.06.
It is important to note that insider transactions can provide insight into the sentiment and actions of company executives. In this case, both Philip and Mcreynolds’ sales demonstrate their willingness to sell a portion of their holdings at what they believed to be favorable prices.
Over the past ninety days, insiders within ArcBest Co. have sold a considerable 46,922 shares worth a total of $5,227,501. Such activity has resulted in insiders currently owning 1.65% of the company’s stock.
On September 3rd, shares of ArcBest Co (ARCB) traded at $108.11 during midday trading. The trading volume stood at 18,812 shares that day compared to an average volume of 311,379 shares. Over the past year, ArcBest Co.’s stock has ranged from a low of $68.00 to a high of $122.86.
The transportation company boasts a market capitalization amounting to $2.59 billion and maintains a price-earnings ratio (PE ratio) of approximately 11.16 which signifies an undervaluation relative to its earnings per share (EPS). Furthermore, ArcBest Co.’s stock exhibits moderate volatility as demonstrated by its beta value reaching 1.57.
Key metrics such as the firm’s quick ratio and current ratio stand at 1.35 each indicating healthy liquidity levels within the organization while its debt-to-equity ratio sits at a modest 0.14%. These financial indicators reflect positively on ArcBest Co.’s financial stability and ability to meet short-term obligations.
In conclusion, hedge funds and institutional investors have displayed a significant level of confidence in the prospects of ArcBest Co. as evidenced by their acquisitions and sales of the company’s stock. Moreover, insider transactions by directors and the CEO indicate their strategic positioning with respect to their personal holdings. Trading at $108.11 per share, ArcBest Co.’s stock has demonstrated a range of prices over the past year, with potential for future growth.