September 19, 2023 – Atlantic Union Bankshares Corp recently announced a significant increase in its holdings of Old Dominion Freight Line, Inc. (NASDAQ:ODFL) during the second quarter. According to the company’s most recent 13F filing with the Securities & Exchange Commission, it raised its holdings by 267.1%. The firm now owns 3,524 shares of Old Dominion Freight Line’s stock after purchasing an additional 2,564 shares during the period. At the end of the most recent quarter, Atlantic Union Bankshares Corp’s holdings in Old Dominion Freight Line were valued at $1,303,000.
Old Dominion Freight Line last reported its quarterly earnings on July 26th. In this report, the transportation company revealed earnings per share of $2.65 for the quarter—slightly surpassing analysts’ consensus estimate of $2.63 by $0.02. The company generated revenue of $1.41 billion during this period compared to analysts’ expectations of $1.44 billion.
Despite a slight decrease in revenue (15.2%) compared to the same quarter last year, Old Dominion Freight Line demonstrated a healthy net margin (21.49%) and return on equity (34.58%). It is worth noting that in the previous year’s comparable period, earnings per share amounted to $3.30.
On July 26th, Old Dominion Freight Line declared that its board had approved a share repurchase plan with authorization to buy back $3 billion worth of outstanding shares on the open market—a decision often indicative of management’s belief that their shares are undervalued.
Several brokerages have recently shared their outlook on ODFL stock. Morgan Stanley reduced their price target from $334.00 to $332.00 in a report released on July 6th while Barclays increased their price objective from $375.00 to $410.00 and assigned an “equal weight” rating to the company on July 28th. Credit Suisse Group also raised their price objective from $304.00 to $375.00 on July 27th, and Robert W. Baird increased their price objective from $320.00 to $410.00 on the same day. Lastly, 3M maintained a rating of “maintains” on Old Dominion Freight Line’s shares in a research note published on June 30th.
According to Bloomberg, Old Dominion Freight Line presently maintains an average rating of “Hold” with an average target price of $369.70, as determined by analysts’ evaluations.
These developments regarding Atlantic Union Bankshares Corp’s increased holdings in Old Dominion Freight Line, as well as its quarterly earnings report and share repurchase plan, provide valuable insight into the transportation company’s recent performance and future prospects in the market. While certain brokerages have expressed mixed opinions through their ratings and price targets for ODFL stock, investors and industry professionals alike continue to closely monitor the company’s progress moving forward.
Institutional Investors Flock to Old Dominion Freight Line as Company Approves $3 Billion Share Repurchase Program
Old Dominion Freight Line (ODFL), a transportation company, has recently attracted the attention of several institutional investors. CoreCap Advisors LLC entered the fray during the fourth quarter of last year, purchasing shares worth around $30,000. Similarly, Jones Financial Companies Lllp acquired an additional 107 shares in the first quarter of this year, increasing its holdings by an astounding 3,566.7%, now valued at $37,000. Heritage Wealth Management LLC followed suit by acquiring 70 additional shares during the same period, which are now worth $40,000. GPS Wealth Strategies Group LLC also joined the party in the first quarter with a stake worth approximately $40,000. Harbour Investments Inc., on the other hand, increased its holdings by 184.4% during the first quarter and now owns 128 shares valued at $44,000. These actions have resulted in institutional investors currently owning a staggering 72.14% of ODFL’s stock.
Notably, Senior Vice President Steven W. Hartsell recently offloaded 403 shares on August 10th at an average price of $405.33 per share, amounting to a total transaction value of $163,347.99. Following this sale, Hartsell now holds 491 shares valued at $199,017.03 directly in the company’s stock. In another move within senior management circles, Director Thomas A Stith III sold 225 shares on August 11th for an average price of $411.66 per share and collected a total sum of $92,623.50 from the sale. Consequently, Stith now possesses 1,342 shares valued at an impressive $552,447.72.
Continuing with ODFL’s recent activities is their exciting announcement that their board has given their approval for a significant share repurchase program worth an estimated $3 billion as of July 26th. This program allows the company to buy back up to 6.9% of their outstanding shares through open market purchases, signaling an optimistic outlook from the management team who believes their shares are undervalued.
As for its financial performance, ODFL opened at $409.84 on Tuesday and has a market cap of $44.78 billion. Over the past twelve months, its stock has ranged in price from a low of $240.00 to a high of $438.05. The company’s current ratio and quick ratio stand at 1.45, implying healthy liquidity levels, while its debt-to-equity ratio sits comfortably at 0.02.
In conclusion, Old Dominion Freight Line continues to attract institutional investors who see potential in this transportation company’s stock as evidenced by increased stake purchases by various firms. Senior executives have also taken advantage of this interest by selling some of their holdings. Furthermore, the approval of a substantial share repurchase program indicates that the company believes its stock is undervalued and aims to leverage this opportunity to benefit shareholders in the long run.
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