Saia’s Mixed Performance: Balancing Expansion Potential with Seasonal Challenges

In a report released yesterday, Ken Hoexter from Bank of America Securities reiterated a Hold rating on Saia, with a price target of $367.00.

Ken Hoexter’s rating is based on several factors, including Saia’s performance trends and market conditions. While the company is expanding its network and showing some resilience in tonnage numbers relative to peers, its mid-fourth-quarter performance indicates sub-seasonal volumes. This includes weaker trends in October and expected softness in December, resulting in mix headwinds, particularly in high-revenue areas like Los Angeles, where volumes have notably decreased year-over-year.
Additionally, despite pressures on truckload capacity, Saia is not yet benefiting from a meaningful shift of less-than-truckload freight from the truckload sector. The company’s 4Q operating ratio target also signals seasonal deterioration above historical norms. However, on the positive side, customer confidence is improving with greater visibility into future negotiations, leading to an increased price objective to $367, reflecting better growth potential as Saia evolves into a larger national carrier. As a result, Ken Hoexter maintained a Hold (Neutral) rating, balancing these mixed metrics.

In another report released yesterday, Stifel Nicolaus also maintained a Hold rating on the stock with a $343.00 price target.

Based on the recent corporate insider activity of 54 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 SAIA in relation to earlier this year.