Jason Seidl, an analyst from TD Cowen, reiterated the Buy rating on Knight Transportation (KNX – Research Report). The associated price target was lowered to $49.00.
Jason Seidl has given his Buy rating due to a combination of factors influencing Knight Transportation’s performance. Despite a reduction in the price target from $55 to $49, the company’s first-quarter earnings per share exceeded expectations, driven by strong performance in warehousing and trailer leasing, as well as better-than-expected margins in the less-than-truckload (LTL) segment. These positive results helped offset challenges in the truckload (TL) segment, where operating ratios missed estimates.
Seidl acknowledges the challenges Knight Transportation faces, including tariff-related disruptions and seasonal fluctuations, but notes the company’s proactive measures to reduce costs and adjust its fleet size. Additionally, the LTL segment’s expansion and tonnage growth in new terminals provide opportunities for yield and margin improvement. While uncertainties remain, particularly with the upcoming months, the focus on organic growth and strategic network expansion supports the Buy rating, as these efforts are expected to bolster the company’s long-term performance.
In another report released today, Barclays also maintained a Buy rating on the stock with a $58.00 price target.
Based on the recent corporate insider activity of 47 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of KNX in relation to earlier this year.