Analyst Jason Seidl of TD Cowen reiterated a Buy rating on Covenant Logistics Group, with a price target of $30.00.
Claim 50% Off TipRanks Premium and Invest with Confidence
- Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential
Jason Seidl has given his Buy rating due to a combination of factors including Covenant Logistics Group’s strong second-quarter performance, which exceeded expectations primarily due to steady business operations and positive adjustments in TEL estimates. The company’s freight revenues grew by 8% year-over-year, surpassing forecasts, and there was notable margin outperformance in the Dedicated segment, which offset weaker margins in the Expedited division.
Additionally, Covenant Logistics Group’s strategic share repurchases and management’s outlook for gradual improvement in freight markets contribute to the positive rating. Despite challenges in certain areas, such as the Expedited segment, the company anticipates sequential margin improvements and continued fleet growth in the second half of the year. The reaffirmation of the price target and the expectation of disciplined capital expenditures further support the Buy recommendation.
Based on the recent corporate insider activity of 29 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CVLG in relation to earlier this year.